If you’re setting up communications solutions for your business, you’ve probably come across the term “hosted telephony” or “VoIP” telephony. These two terms are actually for the same type of telephone systems. Systems hosted online that allow you to make calls, send messages, and communicate with your customers.
Everything is online nowadays and, as many providers stop using expensive copper telephone wires, customer communication systems are also making the move to online.
In this blog post, we explain what hosted telephony is, its benefits over traditional phone lines, and why it is the future of office communications.
The Basics of Hosted Telephony
Traditional telephony relies on physical copper telephone lines while hosted telephony uses the internet. Hosted telephony, or VoIP (Voice over Internet Protocol), is a cloud-based system which makes it much more versatile and means you can use IP handsets, mobiles, or even a desktop application to make and receive calls.
This type of telephony is much more flexible. It can be used remotely. And it allows small-to-medium businesses to utilise technologies that were previously only available to really large brands, saving them money in the meantime.
How Does Hosted Telephony Work?
Hosted telephony works by converting voice signals into data packets, then transmitting them to where they need to go via the internet. Once a number has been dialled, a third-party VoIP (Voice over Internet Protocol) service provider routes the call. This solution completely erases the need for traditional telephone systems – which are typically very costly, and must be managed by the user. And are being offered less and less frequently by providers.
What Are The Differences Between Hosted Telephony & Traditional Systems?
Hosted telephony is convenient, easy to install, and can be used by workers remotely – as long as they have an internet connection. It’s a cost-effective solution that stores all your call data in a secure cloud. This telephony solution isn’t just limited to photne calls either – you can get instant messaging, SMS texting, voicemail, and video calls all in one place.
Traditional telephony isn’t affected by power outages, but can be very expensive with a high cost of maintenance and installation. It’s also more prone to spam calls.
Pros of hosted telephony:
- Cost saving.
- More flexibility and portability.
- Offers better security.
- Includes more features such as SMS and instant messaging, voice mails and video calls.
Cons:
- Power outages can prevent calls from working properly.
- It requires a good and steady internet connection.
- Latency and jitter issues can come up.
Pros of traditional telephony:
- Does not require an internet connection.
- Easy to use and convenient.
- Ideal for emergency use.
- Great call quality.
Cons:
- They can be very expensive.
- High cost of maintenance and installation.
- Prone to spam calls.
- Require physical installation.
Are Hosted Telephony and Cloud Phones The Same?
‘Hosted’ and ‘cloud-based’ phone systems aren’t the same, but they can be easily confused as they both use cloud technology.
A hosted telephony system utilises both software and hardware – set-up and reserved for your business’s use only. This means no external call traffic will disrupt performance and the bandwidth can be altered for your individual needs. It’s a bespoke system. Hosted systems are usually managed by the provider – but you can also get non-managed hosted systems.
What Are Cloud Based Phone Systems?
Instead of the private system of a hosted telephony solution, cloud phone systems utilise shared resources which multiple businesses may be able to access. Businesses rent the cloud system, which means that all maintenance and management costs and responsibilities fall with the provider. And can often offer 24/7 support which is great peace of mind for companies.
Check out how Officeology can help you modernise and future-proof your telephony systems. And save you a bit of money while we’re at it. Get in touch with us to learn how to can improve speeds, reduce costs, set up customised data plans, and enhance the experience of hybrid and remote workers.
Looking for more? Check out our guide covering How to Set Up an Office Phone System for some invaluable tips and tricks to getting your office phots up and running smoothly.