Why Hosted VoIP Service is Right for Business

Posted by Mark Greim on Apr 11, 2013 3:32:00 PM

VoIP implementations in the small to medium business markets are becoming the norm, as more trends are pointing to IP systems becoming the technology of choice.  Why are businesses investing in this technology?  Why is the hosted or cloud based model a good option for this market?  These are just a couple of questions answered in this post.

Replacing Old Phones / Old Technology – Analog lines and phone systems are simplyBusiness Phone System becoming relics.  If you are a business with an analog phone system greater than ten years old, you already know how difficult it is to get new or replacement handsets for your system.  You also know how much in service and maintenance fees you are paying to keep that system alive.  Finally, if your business has evolved at all, you know that your phone system may be holding you back on certain functions or capabilities necessary to meet the customer expectations of this generation’s marketplace.  Simply stated, many companies are evolving to the new technology because their business has evolved with the times.

Low Investment / Stable Monthly Service Rates – Businesses making the change from their old system are faced with an investment decision.  Few businesses enjoy investing in infrastructure.  Similar to cloud-based software, hosting, or other applications, similar advantages are found with hosted VoIP, or hosted telephony applications.  The investment is low when compared to site-based systems, as the only investment is in the handsets and some minor premise equipment.  In return, hosted VoIP providers typically charge for monthly phone service by the user count or handset.  Many bundle local and long distance charges into this rate along with any administrative updates they handle on your behalf.  Thus, by going with a hosted model, businesses upgrade their technology for a low entry rate and a stable monthly service fee.

Administration / Diminished Obsolescence Concerns – Administering a VoIP system is much different than your analog systems, as most hosted providers handle changes with a simple keystroke!  There’s no more paying service personnel to moving phones around so people can their extensions as they move offices.  For the most part, businesses are out of the phone administration game once they make the shift to VoIP.  Additionally, they do not have to worry about their PBX becoming obsolete.  The responsibility to keep up with technology enhancements is up to the hosted phone service provider.  The handsets are relatively inexpensive, thus, over time, can be easily upgraded to newer models if required by wear and tear. 

Continued Improvement of the Internet Landscape – A decade ago, the availability of stable and robust internet circuits was a valid deterrent to VoIP deployments.  Today, more alternative providers are in the market providing internet service with significant bandwidth.  These connections have proven to be more and more stable as the networks mature.   Google’s recent entry into this market by offering fiber gigabyte connections to businesses and residences in Kansas City, MO and KS, and the just announced market of Austin, TX will only push the marketplace further and further. 

New Technology / Flexibility – It’s not all about just replacing the old technology; it’s what you are able to do with the new technology that really has businesses flocking to hosted VoIP service.  Small and medium sized businesses are able to take advantage of system features that previously may have been only available in very expensive on-site systems. I recently posted a series of articles focusing on the many features and capabilities of hosted VoIP systems that will provide you with additional detail to this point.

Join the party and investigate a hosted voip system and service for your business today!


About the author:  Mark Greim is the Vice President of Sales and Marketing at sipVine, a provider of a variety of digital phone solutions and services. Mark has extensive experience working for start-up or entrepreneurial organizations and has a passion for affordable, reliable, and purposeful technology solutions in those environments. 

Topics: Phone System Replacement, small business phone service

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