At first, VoIP IP Telephony designs only took on-premises networks into account. This means you had to install IP PBX equipment locally.
As VoIP evolved and cloud technology took over local infrastructures, hosted VoIP was introduced.
There are differences in the capabilities of on-premises and hosted VoIP. Let’s have a look:
On-Premises VoIP
Hosted VoIP
Installation and Setup
Needs local PBX equipment
Requires SIP trunking
Requires long hours and on-site presence for setup
No need to purchase PBX equipment
A reliable internet connection does the trick
Fast setup
On-site presence is not required
Multiple Offices
More equipment needed to connect multiple offices
Easy inter-office connectivity
Devices
Only IP Phones
Multiple options (handset, mobile app,
web dialer)
Call Transfer
Call forwarding to mobile or landlines only
Multiple call forwarding options (any device)
Scalability
Scaling can be complex and requires long man hours
Scalable as desired Instantaneous configuration
Costs
High upfront investment and maintenance fees
No initial investment, low monthly fees
Usage and Maintenance
Provider-dependent
Can incur high costs for long distance calls
Unlimited continental calls
International calls at a fair rate
How Does Hosted VoIP Work?
In VoIP telephony, there’s nothing like pulses or tones. Everything is handled as data packets on an IP network.
Once your voice communication is sent over the Internet in data packets, it’s transmitted to the IP router that is closest to the called party’s network. A VoIP call can be transmitted to any type of phone worldwide:
- If the called party uses traditional telephony, the digital signal is converted
back to analog by a VoIP gateway. - If not, it’s delivered directly by a digital signal that can be picked up on a desk phone or a softphone.
Typical Hosted VoIP Diagram
What Are the Benefits of Using Hosted VoIP?
VoIP will help increase any business’s productivity and help owners achieve a higher return on investment. Here’s why:
Advanced Features
Thanks to digitalization, VoIP unifies different communication technologies in the phone system to deliver great features for the business, such as voice-to-email, call forwarding, logs of incoming and outgoing calls, caller ID, and more.
More Flexibility
VoIP has made it easier for companies to own phone numbers worldwide, freeing them from complex registration and set-up processes. Moreover, VoIP makes it possible for mobile workers to stay reachable anytime using their connected devices.
Best Sound Quality
Today’s VoIP solutions outmatch the voice clarity of traditional phone networks. Vendors have made significant improvement to increase call quality and eliminate call drops, so you can no longer tell the difference between a VoIP call and a traditional one.
Cost Savings
When you’re looking for business features, traditional phone systems can be a costly investment. This is due to setup, installation and maintenance fees for the required hardware equipment. VoIP phone systems significantly lower or even eliminate these costs. With hosted VoIP, you won’t have to buy any local phone equipment.
COMMbits Cloud PBX
Always-On, Complete and Reliable Cloud PBX Business IP Telephony System Delivered Right from the Cloud
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