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As you look into communication services for your business, you’ll run into a lot of technical jargon – cloud-hosted PBX, virtual PBX, hosted PBX, hosted VoIP. As someone who may not have a background in IT or computer science, you may feel frustrated at the sheer number of terms, some even describing the same concept. After all, you just want to be able to pick up your phone and have everything work as it should.

But functional knowledge of these telephonic systems can save you thousands of dollars, while keeping your business up-to-date with the latest technological advancements. Not tech-savvy? We can avoid the nitty-gritty of these complex services and look at the solutions they provide from a top-down perspective.

Let’s start with VoIP.

VOIP Phone Service
VoIP Conference Phone

VoIP stands for Voice over Internet Protocol, though it’s also referred to as IP Telephony, Internet Telephony, and Internet Calling. The whole “telephone” part of VoIP comes only by association — the technology no longer requires a phone set, a headset, or analog lines.

Many businesses are turning to VoIP solutions due to its substantially lowered cost and variety of new features. Bandwidth is so plentiful that companies can offer benefits, such as unlimited extensions or apps that integrate your desk phone into your cell phone.

You may have already experienced a VoIP service yourself in the form of Skype, which is largely free to use. While consumers have adopted the technology readily, many businesses have not updated their services. Taking the internet plunge now will put you ahead of competition, some of which are still maintaining a traditional PBX.

Whoa, wait…traditional PBX? What is that?

Back in the olden days (before broadband, fiber, and even DSL), a business or large organization needed to have a PBX, or a private branch exchange, to manage calls. Basically, these were analog lines that formed their own private network, each with their own extension.

While calls outside of the network were billed by the minute, calls within the institution were free. While expensive, a PBX was cost-effective in the long run, because internal calls could be long and expensive.

VoIP inspired a paradigm shift. Instead of using a private network, it took advantage of the global infrastructure of internet. The grand scale of the web, as well as the lowered cost for access, allowed for greater flexibility and less maintenance.

So, how does a hosted VoIP work?

Well, hosted VoIP (also known as a hosted PBX) is essentially a cloud-based communications solution with a monthly service rate. To take advantage of VoIP, you’ll need a server to encode, transmit, and decode all your outbound and inbound data.

You either:

  1. Outsource access to an outside provider, and they take care of IP-PBX server maintenance, technical support, and internal networking for you.
  2. Purchase an on-premise PBX, which is a server and phone system your company maintains onsite.

Now, many will argue about which one is better, but it comes down to your needs as a business. If you anticipate rapid growth in the coming years, hosted VoIP might be a better option, since there’s no need to upgrade equipment and small adjustments can be made month-to-month.

Space is another factor to consider. If you don’t want to devote the square footage necessary to house a large amount of wires and equipment, hosted VoIP will save real estate, while sparing you from a tangle of cords and plugs.

Whichever solution you decide to pursue, know that hosted VoIP at CTS Telecom has several unique perks, including:

To Find the Perfect Voice Solution for Your Business, Contact CTS Telecom Today.

Curious about what Hosted VoIP can do for you?  Schedule a free demonstration courtesy of CTS Telecom. We have an array of voice services for all applications and budgets. And if you’re looking for an all-in-one solution, we offer colocation, voice, internet, cloud services, and data transport. We invite you to discover how CTS Telecom can take care of your business’s needs. To get started, contact us today.