Hosted Phone Systems: Enterprise Level Solutions to Scale Your Business

What is a hosted phone system?

A hosted phone system, or hosted telephony, is a cloud-based telecoms solution where you can make phone calls over the internet. The provider hosts the system, so you have no unnecessary hardware in your office. It’s ideal for any size businesses, customer support departments or call centres.

The system is set up to work over an internet connection instead of traditional phone lines, which makes it a highly flexible business telecoms solution.

With a hosted phone system, any device that connects to the internet can make and take calls for your business. That includes:

• Desktop PCs
• Laptops
• Mobile phones
• Tablets

Not every hosted VoIP phone system is the same and you can usually tailor your system to best fit what your business needs.
But to do that you need to find a great VoIP provider with a powerful VoIP solution. Compare the market to find the best match for your business.

How does a hosted phone system work?

It works by connecting to the cloud to make and receive calls. In short, VoIP uses the same LAN network as your office internet connection. It automatically connects to the IP network. The VoIP system is hosted off-site in a third-party data centre managed by the provider.

Since the phone system is connected to the cloud, you don’t have any extra hardware or maintenance or updates to do.

When we think of office phones, we’re used to imagining a landline. But that’s in the past. Business phones these days are a lot more flexible and technologically-driven.

Hosted vs on premise phone system—what to choose?

There are two types of VoIP phone systems—hosted VoIP and on-premise phone systems. Which one you should choose depends on your business type, size and communication needs.

Here are the main things to consider when choosing your VoIP solution:

1. Hosted phone systems

Hosted means no hardware or equipment stored in your physical office. Well, nearly—you still need your laptops, handsets and a router. But no chunky telephones or servers at your premises.

This VoIP solution is hosted on the provider’s servers located at their centre and they’re not your responsibility.

Hosted business phone systems can be summed up like this:

• Hosted phone systems use the internet to connect your phones and calls.
• No landlines are needed.
• Everything is hosted and managed from servers at your provider’s centre.
• All the features and programming of your VoIP phone are stored in the cloud.

2. On-premise phone systems

On-premise phone systems are a combination of traditional PBX phones and a hosted system. So, they do exactly what hosted VoIP phone systems do, except you have a physical box at your office.

On-premise means:

• The VoIP system is physically installed at your office.
• You have more hardware—office phones and on-premise servers.
• You’re responsible for maintaining the server in this case, so it’d be ideal to have an in-house IT department.

On-premise phone systems can work well for call centres with hundreds of phone lines.

They’re also useful as a transitioning tool for businesses who want to gradually move to a completely cloud-based telephony system. They can also be used as a backup if your internet connection goes down.

But as ISDN phone lines get switched off in 2025, we recommend you choose a fully hosted business phone system instead. Or make sure you have a solid transitioning plan for the best future-proofing.

What are the benefits of a hosted phone system?

Using the cloud for your phone system lines up many benefits. Why choose a hosted phone system? We’ve broken down the most impactful business benefits below.

1. It’s easy to transition to a hosted phone system

Switching over is easy and doesn’t have to be costly.

In general, hosted VoIP phone systems tend to be less expensive because they don’t use hardware—only software over the cloud. You can use all the devices you already have, like your mobile phones and company laptops to help keep the costs down and make the change quickly and smoothly.

The key to a smooth and fast transition from traditional phone lines to VoIP is finding the right VoIP provider. Fortunately, there’s plenty of choice on the business telecoms market. Find the right one by comparing the market.

2. Hosted phone systems are easier to maintain

PBX uses phone lines. Traditional systems tend to be more expensive because of this. They require more work to look after and more maintenance to run smoothly.

The good news is hosted phone systems don’t require the same level of upkeep.

Your system provider will make all required software updates over the cloud. You don’t have to wait for your provider to visit the office or to call someone in to make repairs.

But that also means you rely on the provider to properly maintain the server and fix issues quickly. Which is why it’s important to find the right provider with one of the best IP phone systems for business.

3. Work from anywhere with a hosted phones system

Remote and hybrid roles have become very popular over the past few years and the demand for remote working will continue to increase. Truth is your team doesn’t need to be in the office to collaborate or make customer calls.

Business telecoms solutions like Microsoft Teams and VoIP, for example, make working from home easily achievable. All your employees need is an internet connection and a laptop.

4. Add new users easily

Hosted phone systems are easier to scale up. With a traditional phone system, you’d need to buy new phones and set them up for new employees and let your provider know.

With a hosted system, you just need to press a few buttons and the new user is added. It’s a huge time saver.

5. Lower costs with a hosted VoIP phone system

There are several ways to cut costs with your business communication when using a hosted phone system:

• Low set-up costs.
• No need to install costly new phone lines when you need them.
• Lower maintenance costs.
• Reduced call costs, especially if you make lots of international calls.
• It includes features for which you’d normally pay separately, like voicemail or conferencing.

The total cost ultimately depends on your business size and requirements. The provider and VoIP package you choose also play a role. Make an informed choice

6. A hosted phone system is a complete package

A hosted phone system can do more than phone calls. Using VoIP, your team can do everything they did over conventional phones and more. They’re packed with features. The most popular include:

• Video conferencing
• Instant messaging
• Voicemail to email
• CRM integration
• Call recording
• Auto-attendant
• Call routing
• Call analytics

They’re also highly customisable. You can choose which features you want for your business, giving you more flexibility and control. And you can always go back to your provider to add more features later when you want them.

It’s what makes VoIP a great solution for small businesses and large businesses alike.

How can you get a hosted phone system?

Now you know how a hosted business phone system can help you increase productivity, reduce costs and manage your business operations better. All that’s left is finding the right VoIP solution for your business.

You can do that right now by comparing the market to find the best hosted phone system to cover your business needs.