What is Hosted VOIP?

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VOIP, or Voice over IP, is a popular term that refers to a wide range of different technologies that can be used for delivering video and voice over an Internet Protocol Network. There are plenty of software programs that offer Voice over IP communications, using the Internet in order to deliver video and voice to users. Instead of using the public telephone network, these companies make use of the Internet to deliver multimedia. However, setting up the VOIP network requires a considerable amount of investment.

There are two ways to utilize VOIP services. You can either decide to set up the network on the premises, or opt for hosted VOIP services. However, most people don’t even know what hosted VOIP services really are. Hosted services are those where the equipment, additional services, and all the servers are hosted by the VOIP provider. The provider is responsible for the call setup and making sure that all the calls are routed properly from the existing telephone system maintained by the subscriber. Hosted Voice over IP services are also commonly known as managed IP services.

What is Hosted VOIP?

The Benefits

There are plenty of benefits that you can get for signing up with hosted Voice over IP services. The biggest benefit that you get for selecting these services is the amount of cost savings. Setting up your own VOIP system can be pretty expensive. You will need to invest in the infrastructure and hire operators in order to make sure that everything runs smoothly. However, if you are outsourcing the whole system, you don’t have to worry about any such thing. The company will manage everything and make sure that customers get the best possible experience.

Voice over IP solutions are very important for large corporations and organizations. Maintaining a continuous connection with other branches is very important for organizations. Obviously, telephone connectivity is unreliable in such cases. Most companies require dedicated multimedia solutions where they can talk and chat via video as well. That’s why hosted VOIP solutions are so important. Most companies often spend millions in order to create their own VOIP networks. However, as tech businesses have grown in the past, many have realized that hosted VOIP services are the best option. Not only will you end up saving a considerable amount of money, but you don’t have to worry about managing the network either. It’s simple and quite efficient.

How Does It Work?

All VOIP solutions mainly use packed switched telephony in order to connect calls and transmit them from one place to another with the help of the Internet. This is different from traditional circuit-switched telephony, which is generally used by public switched networks. The quality of the call isn’t affected by the distance either, mainly because the internet allows for fluent connectivity all over the globe.

Making a Decision

The biggest decision that most companies face is whether they should opt for a hosted VOIP provider or set up their own in-house VOIP network. There are plenty of companies that also provide premises-based solutions, which essentially mean that the company will visit your office and install the network. They will manage everything, while you get to use their services.

Many companies that offer hosted VOIP solutions don’t offer the same number of features in their hosted VOIP packages as they do on their premises based services. Before you sign a contract with any company, compare the number of features and decide upon the one that meets your needs best.

You will also have to think about the upfront costs. Hosted VOIP solutions generally have a lower upfront cost as compared to premises-based solution providers. In most cases, you will just have to pay an annual subscription fee for using their services. However, premises-based solutions are significantly more expensive, because you will have to bear the costs of all the new equipment and the installation of the infrastructure. Therefore, you need to consider the best option depending upon the requirements of your company, as well as the budget allotted for the installation of the VOIP solution.



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