Hosted VoIP is a cloud-based phone system where the VoIP service provider manages and maintains all the infrastructure, allowing businesses to make and receive calls over the internet without owning any physical PBX hardware.
Here’s a more detailed explanation:
What it is:
Instead of installing and managing an on-premise phone system, businesses subscribe to a hosted VoIP service, where all call routing, voicemail, and system updates are handled by the provider via the cloud.
How it works:
Users connect to the hosted VoIP platform through IP phones, softphones, or mobile apps. The provider’s servers handle all the backend call processing, maintenance, and upgrades — delivered entirely over an internet connection.
Benefits:
- Lower upfront cost: No need for expensive hardware or in-house servers.
- Easy scalability: Add or remove users with a few clicks.
- Remote-ready: Ideal for hybrid and distributed teams with internet access.
Key components:
- Cloud-based VoIP platform
- IP endpoints (phones, apps)
- Internet connection with sufficient bandwidth
- Admin dashboard for user and feature management
Why it’s beneficial:
Hosted VoIP offers businesses flexibility, mobility, and professional-grade features without the complexity of maintaining telecom hardware. It’s a go-to solution for startups, SMBs, and remote-first companies.