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Written by
Katy Ratican
13 Jun 2022
4 minutes

Hosted phone systems: Features, benefits, pros and cons

A complete guide to hosted phone systems that will help you choose the right one for your business
Hosted phone systems benefits, pros and cons

More and more business operations are migrating to the cloud. Instead of on-premise phone systems and infrastructure, organisations now prefer a hosted phone system. It comes with several advantages that small businesses can’t afford to ignore. In case you’re thinking about getting one, here’s everything to know about a hosted phone system.

What is a hosted phone system?

A hosted phone system is hosted in the cloud using VoIP (Voice over Internet Protocol) technology. Unlike a traditional phone system, there is no Private Branch Exchange (PBX) or hardware to be stored at the premises. This is the fundamental difference between a PBX and VoIP.

Small businesses, startups and organisations with a predominantly remote workforce prefer hosted phone systems. You can access and operate the system through any connected device with the necessary application. There are no hardware or telephone lines because a hosted phone system is essentially software that you use as a business phone.

How does a hosted phone system work?

The traditional phone system requires a network of copper lines for connecting users and a PBX to direct and manage those calls. In a hosted phone system, this moves to the cloud and what you get is a cloud PBX system.

In VoIP, voice is converted into data packets that are unpacked at the receiver’s end. Hosted phone systems use routers to connect to the concerned network. This connection is facilitated either through a specific connection for your business or securely through the internet.

You can use the application on your smartphones, tablets or laptops to make and receive calls and data. You can also use Internet Protocol (IP) handsets to use a hosted phone system.

The benefits of a hosted phone system

Hosted phone systems offer significant benefits to small businesses and startups looking for agile, flexible, feature-rich and cost-effective phones for their businesses.

A hosted phone system is easy to set up

If you’re comparing on-premise with hosted PBX, the first advantage you’ll notice is that a hosted phone system is easy to set up. You don’t have to install hardware and copper lines and wait for your PBX to be set up. This means there will be no interruptions to your business. Just download the app and you’re good to go.

It's cost-effective

With a traditional phone system, all those copper lines and hardware will be at great cost for your business. These are unavoidable initial investments regardless of the size of your business. But with a hosted phone system, you don’t have to spend on any of these or buy additional devices for users. The charges are also considerably low for hosted phone system users.

A hosted phone system gives you mobility

Remote work isn’t a mere fad, as the business world is finding out. A hosted phone system can connect remotely placed workers with the utmost ease without anyone having to buy hardware. You can use the phone even when you’re at a client’s site. The caller wouldn’t know that you’re out of the office.

You get enhanced business tools

Hosted phone systems are designed for business use, unlike the traditional phones that were built to connect regular users. So, you get business tools like advanced chat, group messaging, voicemail transcription, auto-attendant, call recording, call forwarding and other collaboration tools.

Hosted phone systems are scalable

If you want to add users to a traditional PBX, you have to call your phone company. If you want to change the location, it’s even more cumbersome. But with a hosted phone system, you can easily add users through the interface.

The disadvantages of a hosted phone system

It depends on the internet connection

Like any cloud-based application, the performance of a hosted phone system would depend on the quality of the internet connection. If you operate in a network-dark area, the system may not work and you’ll have dropped calls.

Network latency could create problems

If there is network latency or a lag in the network connection, the communication will be jittery. This happens only if the internet connection is unsteady. Think of it as opening a file with slow internet bandwidth.

Looking for a new phone system for work? Try Chalkboard

Chalkboard offers all the advantages of a hosted phone system with none of the disadvantages. With this second line for work, you get:

  • Numbers that your team can share, which will increase collaboration

  • Auto-reply for calls you might miss

  • Advanced chat for talking to your customers like friends

  • Group broadcast for sending mass promotional texts

  • Automated review requests to build your online reputation

  • VoIP through cellular coverage for steadier connections

  • A free trial to decide if it’s the right option for your business

  • A scalable business phone that lets you add numbers as your business grows

  • Affordable plans designed for small businesses

Download Chalkboard and start your free trial. It’s a communication system built with small businesses in mind.

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