Guide
What is hosted VoIP? A plain English guide for businesses
Hosted VoIP is a business phone system that runs in the cloud instead of in a closet at your office. Your desk phones connect to it over the internet. Here is what that means for you.
Updated · 4 minute read
How it works
VoIP stands for voice over internet protocol. Calls travel over the internet instead of old copper phone lines. Hosted means the phone system itself lives in a data center and is run by your provider, not by you.
Your desk phones plug into your office network. They connect to the hosted system, which handles your phone numbers, menus, voicemail, call queues and everything else.
What you need in your office
- A reliable internet connection.
- Network jacks or Wi-Fi where the phones go. Many current Yealink phones have Wi-Fi built in.
- IP desk phones, which your provider can sell or lease to you.
Why businesses switch to it
- No phone system hardware to buy, house or replace.
- Features that used to cost extra, like voicemail to email, call queues and auto attendants, are usually included.
- Several offices can share one system.
- If your office loses internet, calls can roll to cell phones or another location.
- Changes like adding a user or updating a greeting take minutes.
Hosted VoIP vs traditional phone lines
Traditional lines need a physical line per call path and an on-site phone system to tie them together. Hosted VoIP replaces both with one internet connection and a cloud system. Most phone companies are retiring their old copper lines, so many businesses are moving now rather than waiting.
Common questions
Yes, on a good internet connection. Modern business VoIP often sounds clearer than old copper lines.
The phone system keeps running in the cloud. Calls can be set to forward to cell phones or another office until your connection is back.
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