Hosted VoIP - Does it Live Up to the Hype?

In most cases yes, it absolutely does. There are,wide variety of features. However, all the virtual
however, specific requirements that need to bePBX systems have quite a number of advantages
met to get the best out of a hosted VoIPover the conventional PBX systems. A virtual PBX
service. With that question out of the way, let ussystem offers all the features of the conventional
find out what hosted/virtual VoIP actually is.one, and more.
We are all aware of a PBX (private branchTo begin with, you do not have to maintain a
exchange) system, which exists in offices andlarge physical piece of equipment, and have it
buildings. It is a piece of equipment that hasoperated by someone. A service provider
multiple phone lines coming in, which are sharedmaintains your own private virtual PBX. In the
with a higher number of extensions. An operatorcase of the conventional, premise based PBX
sitting by the PBX equipment answers thesystem, you cannot call outside the office without
incoming calls, and forwards the calls to specificincurring additional costs.
phones via phone lines inside the building. So, weThe advantages of the virtual PBX is that you
need elaborate hardware that requires specialistcan route your calls to any number, anywhere in
knowledge to operate, and someone to attend tothe world, unlike the office based PBX, where calls
it.can be routed only to phones physically connected
By contrast, a hosted/virtual PBX does notto the system. Distance and location does not
require any software or hardware to bematter to employees as they can receive
maintained by you. A service provider maintainsbusiness calls wherever they are.
the system, and the calls are routed from theHosted Virtual PBX systems are a great
hosted/virtual PBX to your telephones, directly,alternative for smaller companies who do not
without any sharing of lines. It's similar to thehave the wherewithal to tie down their capital in
concept of website hosting, but instead of hostingPBX equipment. The initial start-up costs are also
your website, the service provider hosts yourvery low.
virtual PBX.Your service provider takes up the burden of the
The Basics of hosted VoIP and a The Virtual PBXcomplex system management in the case of the
The way technology is advancing, especially in thevirtual system, which would otherwise be your
field of communications, small companies are nowheadache, if you have the conventional PBX
able to narrow the gap between themselves andsystem.
the larger companies but without a large capitalThe disadvantage of installing a conventional PBX
outlay. The case in point is the hosted/virtual PBXsystem is two fold. One is that you may soon
system.outgrow the small system you may have
In place of expensive telephony equipment youinstalled, and replacing your system - say, every
install on your premises, a virtual PBX system is atwo years - to suit your growth is quite an
phone system - fully functional - available overexpensive proposition. Second, you may decide to
your existing private network or your existinginstall a larger system right in the beginning, tying
Internet connection. You just need to subscribe toup your capital by paying more for a system you
a VoIP hosting service provider that offers whatdo not need right now.
you want. As your business grows, you canThe hosted/virtual PBX system is not size
arrange to upgrade your hosted telephonedependent, but is based on the number of users.
system, enabling you to handle higher volumes ofYou can scale up, or scale down your system
calls and add extra telephone extensions, queuewhenever you wish to, and pay only for what
extensions, IVR extensions, mailboxes and more.you use.
Virtual PBX systems are very affordable, andThe conventional PBX system has the capacity to
offer the following benefits, among others, tohandle a limited number of incoming calls -
companies of any size:depending on the number of incoming lines installed
- They typically have a very low initial start-upin the system. When more calls come in, the caller
cost, since no traditional PBX hardware/softwarereceives a busy signal, and chances are you may
is needed on your premises.lose business. Upgrading, to add more incoming
- Upgrades are instant and cost-effective and,lines, is expensive. On the other hand, virtual PBX
since they are hosted, require minimal technicalsystems handle more incoming lines than any
support or maintenance.existing conventional system can handle. The caller
- Often times, they will offer cheaper calling ratesnever hears a busy signal, and if they ever do,
to cellular, national and international telephonethen it may be time to change your service
numbers (least-cost routing)provider.
- In some cases, free calling between extensions,A hosted/virtual PBX system makes great sense
regardless of geographic location (virtual office)for businesses that have distributed employees,
- Real-time access to your hosted systemand those who need to keep their initial capital
through the Internet, regardless of which city oroutlay low. It is also advantageous for companies,
country you, or your staff, find themselves.small or large, whose incoming call capacity is
- Most will provide an Interactive Voice Responselarge, expect their requirements to change, and
(IVR) service, negating the need for a separatewish to offer toll-free and low-cost calls to its
IVR system, which can sometimes costscustomers and employees.
thousands.Keep in mind that not all virtual PBX systems are
- Features such as voicemail that can be emailedcreated equal, and there are choices available for
to you and real-time, digital call recordings whichyou to select - to suit your style and type of
are available for download through a webbusiness. Do some research before spending your
browser.money and make sure you deal with people who
Advantages of hosting your telephony comparedare familiar and experienced with Voice over
to a traditional PBX SystemInternet Protocol (VoIP) and PBX hosting, to avoid
No one virtual PBX system is complete in itself,unnecessary expense and delays.
with a variety of service providers offering a