Best Hosted Phone System

Best-Hosted phone system platforms are Servetel, CallHippo, SpitFire, Sangoma, Network Telecom, and Mitel. They have topped the list due to the full features of cloud networks and remote communication flexibility.

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List of 20 Best Hosted Phone System

Showing 1 - 20 of 35 products

The contact center platform from Dialpad combines contact center functionality with video conferencing, VoIP calls, SMS/MMS messaging, and instant messaging. Dialpad is a VoIP hosted phone system that also functions as a customer experience solution, real-time coach, and a productivity software. This platform syncs in real-time, works across all user devices, and is supported locally and globally. Read Dialpad Reviews

Category Champions | 2024

The Virtual Phone System for Super Efficient Teams

CallHippo offers hosted phone solutions in more than 50 countries from where businesses can buy virtual phone lines. It is a cloud-based VoIP phone system. Businesses can add users to the same number and place calls to international callers. This next-generation business phone system is suitable for small and medium-sized organizations. CallHippo offers modern and useful features like Power Dailer and Automatic call dispersal. Read CallHippo Reviews

Category Champions | 2024

Software by Servetel Communications

Leading cloud telephony service provider, Servetel enables today's enterprises to connect with their clients and interact easily. With this VoIP hosted phone system, users may generate virtual mobile numbers and use them to start a range of missed call campaigns. This software provides call transfer, missed-call alerts, text-to-speech, and other helpful communication channels. Read Servetel Reviews

Category Champions | 2024

RingCentral is a well-known cloud-based communications technology that enables businesses to receive and send SMS or phone calls from various devices. Additionally, this hosted telephone system enables users to engage in audio and video conferencing easily. By integrating this system with the current hardware and software, such as Google, Salesforce, and Microsoft, users can access work while on the road. Read RingCentral Reviews

A cloud communications provider Nextiva, helps businesses develop stronger relationships with their customers. With this robust, user-friendly, hosted business phone system, users can manage all discussions and interact with colleagues and customers. Collaboration, voice, chat, video, SMS, and surveys are just a few of the communication channels that Nextiva integrates to assist organizations of all sizes in retrieving the data they require. Read Nextiva Reviews

The Virtual Phone System for efficient teams

DialerHQ is an affordable, hosted phone service. It enables users to communicate with anyone who’s located anywhere in the world via phone calls and text messages. The straightforward app is a practical choice for managing business calls and texts. Organizations can easily register themselves and start using their new phone number by following a few easy steps. Read DialerHQ Reviews

Vonage is a popularly used hosted phone system. This cloud communications platform is perfect for enterprises that use phones as a core platform and integrate communications services like voicemail transcription, video conferencing, and desktop sharing. The tool offers programmable communications APIs, contact centers, and unified communications, all based on the adaptable cloud communications platform. Read Vonage Reviews

8x8 Virtual Office is hosted business phone system suitable for small and medium-sized organizations. It is unified communications and contact center software. This comprehensive platform handles everything for all users, including clients and workers. This phone system enables workforces throughout the world to connect people and teams so they can interact more quickly and efficiently. Read 8x8 Virtual Office Reviews

Do clandestine call monitoring

GoToConnect is a widely used hosted phone solution that offers customized business phone capabilities, integrated video conferencing team chat, and contact center capability. It is an all-in-one, scalable cloud phone and meeting system. Because GoTo Connect is hosted in the cloud, teams can access it and assist callers globally from any computer or mobile device. This lowers hardware expenses and makes scaling easy. Learn more about GoToConnect

System by Jive Communication

With the help of the VoIP-hosted phone system Jive Voice, users may access a comprehensive set of hosted VoIP capabilities, such as auto attendants, limitless voicemail boxes, and local and long-distance assistance. The platform has a Find Me/Follow Me feature that routes incoming calls to numerous phones in a user-specified order. It lets users control call routing procedures, establish unique timetables and dial plans. Learn more about Jive Voice

System by Grasshopper

A cloud-based hosted phone service called Grasshopper aids small to midsize businesses to connect with clients via local and toll-free lines. With Grasshopper, all users’ calls are routed to a digital line because it employs virtual phone numbers. The calls can then be forwarded from that digital line to any phone, landline, or desktop computer. Read Grasshopper Reviews

System by Aircall

Aircall is a hosted phone solution for sales and marketing personnel. It is a fully cloud-based voice solution that is simple to use, dependable, and linked with all CRMs. It is also linked with other renowned business and conversational platforms, including Salesforce, Gong, Intercom, HubSpot, Slack, and many others. The phone system at Aircall is entirely cloud-based. Learn more about Aircall

Call center software for startups and small teams

Freshdesk Contact Center is a widely used hosted business phone system. It makes the help desk and ticketing simple. It is a cost-effective solution to create sophisticated automation, intuitive ticketing, seamless self-service features, and much more. Its outstanding and reasonably-priced features are used by online firms to expand customer self-service and productivity of their endorsement personnel. Learn more about Freshdesk Contact Center (formerly Freshcaller)

System by Avaya Inc

Avaya Cloud Office is a cloud-based communications and collaboration solution. This hosted telephone system offers Unified communications (UCaaS), contact centers, and other services. Its features include screen sharing, instant chat, conferencing, and more. Avaya Cloud Office offers several degrees of capability, like unified communications, mobility convergence, and contact center management features. Read Avaya Reviews

System by Ooma, Inc

Ooma is a widely used hosted business phone system. Ooma offers free and affordable home and business internet phone services. Users’ current phone service is replaced by Ooma, which provides crystal-clear, landline-quality calling over their current phone and high-speed Internet connection. One of its best features is that Ooma will eliminate users’ phone costs and save them hundreds of dollars annually. Read Ooma Reviews

Emergents | 2024

System by LANtelligence

Mitel is the market leader in business communications with its cloud, enterprise, and next-generation collaboration technologies. Businesses of all sizes can choose from a variety of business phone systems and unified communications as a service (UCaaS) from Mitel. This VoIP hosted phone system enables users to facilitate audio, video, and text-based collaboration, organization, and communication within their team. Learn more about Mitel

Can handle up to 1,000 video participants exclusiv

Users of the Zoom communications platform can easily connect by audio, audio, phone, and chat. An active internet connection and a supported device are necessary for using Zoom, a hosted phone service. Key features offered are end-to-end encryption for all meetings, HD video and audio, integrated collaboration tools, recording and transcripts, and simplified calendaring. Read ZOOM Reviews

Most Reviewed

Emergents | 2024

MIDTEL is a fully featured hosted phone system designed to serve Startups, SMEs, and Enterprises. MIDTEL delivers end-to-end solutions mapped out for Web App. This system provides cable television services and internet services to businesses. It also offers Business Fiber packages that easily complement all business requirements. Learn more about MIDTEL

Emergents | 2024

Business communication made personal

OnSIP is a popular hosted phone solution. It is perfect for businesses in a variety of industry verticals. Auto attendants and voicemail-to-email are some of its core features. Employees can use OnSIP to place and receive calls, Instant Messages with coworkers, update presence details, and manage voicemails. On mobile devices, third-party softphones can also be utilized as PBX extensions. Learn more about OnSIP

Emergents | 2024

Communications Solution

3CX is an easy to manage VoIP business phone system that enables you to control your phone from anywhere. 3CX is an open-platform system which can operate on-premise or in Cloud. Includes inbuilt backup and restore features. Read 3CX Reviews


As businesses move towards digital transformation, they are increasingly looking for cost-effective solutions that can help them improve productivity and operational efficiency.
Hosted phone systems are an ideal alternative to traditional landlines and cellular services as they provide reliable communication platforms at a fraction of the cost. They combine VoIP technology with traditional telephony services to provide businesses with a reliable communication platform at a fraction of the cost.
In this article, we will discuss the various features of a hosted phone system and explore its various benefits and drawbacks so that you can make an informed decision about whether it suits your business.

What Is A Hosted Phone System?

Hosted phone system is a cutting-edge telecommunications solution that revolutionizes traditional infrastructure requirements. By eliminating the need for costly hardware like PBXs (private branch exchanges), it adopts cloud-based services like voice-over-internet protocol (VoIP) to enhance communication efficiency.


It provides businesses with an affordable alternative to traditional on-site telecommunications solutions by leveraging existing internet infrastructure instead of relying on dedicated lines and equipment. Businesses also benefit from virtual extensions that allow users to connect from any location without bringing additional hardware into the mix.

Additionally, because there are no physical limitations like those found with landlines or cell phones, businesses can scale their communication channels quickly, making it ideal for rapidly growing companies.

How Does A Hosted Phone System Work?

A PBX system connects multiple physical phones using an online platform such as VoIP (Voice over Internet Protocol). It allows multiple users within an organization to communicate with each other through calls, conference calls, and chat messages without having to buy expensive hardware or software licenses.


The PBX acts as a bridge between all the interconnected devices allowing them to receive and send data efficiently while keeping call quality consistent across locations worldwide.

Furthermore, it provides advanced features such as automatic call routing based on employee availability and caller ID information. This helps ensure customers get routed efficiently, providing a better customer experience overall.

Hosted Phone Systems: Pros & Cons

Let us now explore the advantages and disadvantages of adopting a hosted phone system for businesses to discover how this technology can enhance communication efficiency while considering potential drawbacks. Let’s discuss it through a detailed table.



Cost-effective: Hosted phone systems offer significant cost savings compared to traditional phone systems, as businesses no longer need to purchase and maintain expensive hardware.


Internet Dependency: Since a VoIP-hosted phone system relies on an Internet connection, businesses can experience service disruptions if their network goes down, which could affect customer relations and productivity levels.


Scalable: With hosted phone solutions, businesses can quickly scale up or down depending on their needs without purchasing additional hardware or equipment. It makes adding new users or locations quick and easy, allowing businesses to stay productive and agile.


Limited Customization: The features and configurations available with hosted phone systems are typically pre-determined, leaving little room for customization. Therefore, it can be limiting for business needs that require more flexibility or control.


Increased Productivity: Hosted phone systems allow businesses to access real-time data and analytics about their communications activity to optimize their processes and increase productivity. For example, many hosted solutions include call-logging capabilities that allow users to track customer interactions to identify best practices or areas of improvement.


Security Issues: Some businesses may be concerned about potential security issues when using a cloud-based solution. However, companies can mitigate the risks by ensuring the provider implements adequate security measures such as encryption technologies and data backups on secure servers away from where data is stored locally by users or within corporate offices.


Ease of Use: Hosted phone systems are incredibly user-friendly and easy to set up. All services and features are managed in the cloud so users can access them anywhere with an internet connection. The intuitive interfaces make it simple for users to add features that suit their business needs, such as automatic call routing and recording capabilities.


High Initial Setup Costs: Though ongoing costs may be lower than those associated with traditional phone systems, initial setup costs may be higher than expected when switching from traditional lines to a cloud-based solution. The need for equipment such as phones and routers can quickly add up.


Flexible Features: Hosted phone systems have advanced features, including call forwarding, auto attendant, music on hold, voicemail transcription, conference calling capabilities, and more. These features make it easier for businesses to communicate while simplifying day-to-day operations.


Compatibility Issues: Depending on the model of phones used for calling purposes, there may be compatibility issues between them and certain VoIP providers which need to be considered before making any switch.


Mobility: Hosted solutions also provide greater mobility as employees can access their phone system from anywhere with an internet connection, enabling them to stay connected even when away from the office while ensuring that calls are never missed.


Poor Call Quality: Hosted phone systems are often susceptible to poor call quality due to limited bandwidth. Many hosted phone systems rely on internet access for voice and data transmission, which means that if there is an interruption in the connection, calls may be disconnected or sound garbled.

Key Features Of Hosted Phone Systems

Hosted phone systems offer comprehensive features designed to improve communication and streamline operations. These systems provide functionalities such as voicemail-to-email transcription, video conferencing, secure communication, call recording, and real-time call analytics.


Let's explore the key features and how they can benefit organizations in various aspects of their daily operations.

  1. Voicemail-to-Email Transcription

    Voicemail-to-email transcription is one of the most popular features of hosted phone systems, allowing users to receive transcribed versions of their voicemails straight into their email inboxes.

    This innovative feature eliminates the need for manually listening to each voicemail and saves time for busy professionals. Additionally, it provides added convenience and accessibility by delivering messages directly to any device with an internet connection.

  2. Video Conferencing

    Video conferencing is a crucial benefit for teams spread out across multiple locations. Hosted phone systems enable businesses to easily connect with colleagues or customers from anywhere in the world without installing additional hardware or software. With just an internet connection, users can quickly start a video conference call and be face-to-face within seconds.

  3. Call Recording

    Hosted phone systems provide call recording capabilities that allow organizations to review customer calls or employee training sessions anytime quickly. These recordings are securely stored on the cloud, accessible from any device with an internet connection whenever needed. It makes it easy for businesses to stay up-to-date on customer interactions and ensure that employees follow company guidelines accordingly.

  4. Real-Time Call Analytics

    Real-time call analytics provide valuable insights into how callers interact with businesses over the phone. This actionable data helps companies identify areas where they need improvement or adjust their service offering for better performance in the future. With this information, organizations can maximize every interaction and create an even better customer experience while gaining valuable insights into customer behavior patterns over time.

  5. Uptime Reliability

    One of the key features of hosted phone systems is their high uptime reliability. These systems are typically hosted in secure data centers with redundant infrastructure, ensuring minimal downtime and uninterrupted communication.

    By relying on multiple servers and network connections, hosted phone systems can maintain excellent uptime rates, minimizing the risk of service disruptions. This reliability is crucial for businesses that rely on phone communication to maintain productivity and provide seamless customer service.

Benefits Of Hosted Phone Systems

The best-hosted phone system offers a variety of advantages for small businesses looking to upgrade their communications systems. Some key benefits include:


  1. Easy Setup

    One of the most significant advantages of a hosted phone system is that it requires minimal setup. All you need to do is install the VoIP software on your computer and connect the phones to your network, making it easy to set up quickly and without having to hire an expert or spend time configuring the system yourself.

  2. Cost-Effective Solution

    Another great benefit of using a hosted phone system is that it's cost-effective compared to traditional telephone systems. The monthly fees associated with hosted solutions are typically much lower than their conventional counterparts, meaning businesses can save money over time without sacrificing quality or features.

  3. Unified Communication Platform

    A hosted phone system also provides a unified communication platform for businesses. Therefore, all calls are managed from one central location, allowing employees to access their voicemails, emails, video conferencing, and instant messaging services from any device or location. This unified communications system helps streamline organizational communication processes, helping teams stay connected regardless of location.

  4. Remote Team Flexibility

    Hosted phone systems offer flexible options for remote teams, allowing them to stay connected while working from home or on the go. Employees can use their mobile phones or laptops to make and receive calls as if they were in the office, eliminating the need for costly landlines or long-distance calls.

  5. Scalability

    Finally, a key benefit of using a hosted phone system is its scalability and growth potential. Businesses can add more users when needed or remove those who no longer require access - all without disrupting service or investing in new equipment, making it ideal for organizations that may be experiencing fast growth but don't want to commit too early on investing in costly hardware upgrades or other infrastructure changes.

  6. Secure & Reliable Communication

    Hosted business phone systems provide secure and reliable communication between teams, partners, and customers. It uses advanced encryption technology and multi-factor authentication protocols to ensure all data is kept safe from potential threats or cyber-attacks. It allows businesses to confidently rely on their hosted phone system for meaningful conversations without worrying about security risks.

Top 5 Hosted Phone Solutions

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The best-hosted phone solutions bring seamless communication and enhanced productivity to businesses of all sizes. Featuring industry-leading providers like CallHippo, Nextiva, RingCentral, Vonage, and Dialpad, these solutions offer advanced features, flexible configurations, and reliable customer support.
Businesses can use these hosted phone systems to optimize their communication infrastructure and empower their teams to collaborate effectively, ensuring seamless connectivity with clients and colleagues.

1. CallHippo


CallHippo is a reliable and comprehensive hosted phone solution designed to simplify business communications. It offers a wide range of features and functionalities that empower organizations to manage their calls and enhance productivity efficiently.

With CallHippo, businesses can enjoy seamless connectivity, a local presence in multiple countries, and improved customer interactions in one user-friendly platform.

  • Custom greetings and music 
  • Call routing options
  • Voicemail-to-email
  • Call blocking 
  • Custom integrations
  • A user-friendly interface ensures easy navigation and smooth usage
  • Affordable pricing options cater to diverse business budgets
  • Feature-rich platform with international calling capabilities expands reach
  • Mobile device accessibility for on-the-go communication
  • A free trial is available for users to explore and evaluate the service
  • Limiting to certain countries may be a drawback
  • Restricted customization options limit tailoring to specific needs
  • Lack of collaboration tools like shared calendars and contact management


  • Basic plan is free.

2. Nextiva


Nextiva is a leading hosted phone solution that offers comprehensive voice and video calling features. Designed to cater to businesses' communication needs, Nextiva provides reliable services and an extensive range of functionalities.

From toll-free numbers to call recording, Nextiva empowers businesses to manage their phone systems and collaborate seamlessly and effectively.

  • Unlimited voice & video calling
  • Voicemail
  • Toll-free numbers
  • Screensharing capability
  • Auto attendant
  • Call recording
  • Competitive pricing ensures cost-effectiveness for businesses
  • Easy setup process for quick deployment and implementation
  • Reliable customer support for prompt assistance and issue resolution
  • Rich feature set, including analytics tools for data-driven insights
  • Mobile app accessibility for communication on the go
  • No international roaming capabilities may limit global usability
  • Limited customization options for personalized configurations
  • No free trial is available for users to test the service
  • Limited integrations may restrict seamless workflow integration


  • Essential plan: $23.95 per user per month
  • Professional plan: $27.95 per user per month
  • Enterprise plan: $37.95 per user per month

3. RingCentral


RingCentral is a trusted hosted phone solution offering unlimited domestic calls and other communication features. With its multi-level IVR and business SMS capabilities, RingCentral ensures businesses can efficiently handle phone communications. It provides integration options with popular business applications and offers a mobile app for on-the-go accessibility.

  • Unlimited domestic calling for communication within the country
  • Business SMS/Instant messaging for text-based communication
  • Conference calling to facilitate virtual meetings and group discussions
  • Integration with Google and Microsoft apps and access to APIs for enhanced productivity
  • Internet fax capability for digital document transmission
  • Free trial available on all plans for risk-free evaluation
  • Quick IP PBX setup for swift implementation and deployment
  • Supports complex business rules to accommodate diverse workflows and requirements
  • Simple to add remote employees for flexible team expansion
  • A mobile app is available for convenient communication on the go
  • Reporting features are limited in terms of data analysis and insights
  • Users cannot customize the conference call greeting according to preferences
  • Higher pricing may not be suitable for budget-conscious businesses
  • Customer service issues were reported, affecting the overall user experience


  • Core plan: $30 per user per month
  • Advanced plan: $35 per user per month
  • Ultra plan: $45 per user per month

4. Vonage


Vonage is a reliable hosted phone solution that offers unlimited calls, SMS, and a range of advanced communication features. With its CRM integration capabilities and user-friendly interface, Vonage empowers businesses to streamline phone systems and enhance customer interactions. It also guarantees high uptime and provides a free trial for users to experience its features.

  • Unlimited calls and SMS
  • Multi-level auto attendant
  • CRM integration
  • Call recording feature
  • Visual voicemail
  • Mobile and desktop apps
  • Easy setup and user-friendly interface for hassle-free implementation
  • A 99.99% uptime guarantee ensures reliable service availability
  • Free trial available for users to explore and evaluate
  • Wide range of CRM integrations for enhanced productivity
  • Text messaging does not handle images, limiting multimedia capabilities
  • Add-on fees for features can be expensive for some users
  • Lack of available training resources may hinder user onboarding
  • Limited customer service during off-peak hours may impact support accessibility


  • Mobile plan: $19.99 per user per month
  • Premium plan: $29.99 per user per month
  • Advanced plan: $39.99 per user per month

5. Dialpad


Dialpad is a versatile hosted phone solution that offers unlimited calling, video meetings, and a range of convenient features. With its phone support in over 70 countries and voicemail transcription capabilities, Dialpad ensures that businesses can communicate effectively and manage their phone systems efficiently. It provides flexible pricing plans to accommodate different business needs.

  • Unlimited calling and video meetings
  • Voicemail
  • Call recording
  • Dial-by-extension feature
  • Call forwarding
  • A reliable and feature-rich solution for robust communication needs
  • 100% uptime guaranteed with the Enterprise plan for uninterrupted service
  • A free trial is available for users to test and evaluate the solution
  • Phone, web, and chat support are available for comprehensive assistance
  • No call quality information in the analytics report, limiting insights
  • Limited video conferencing without add-ons may restrict collaboration
  • Auto-dialer costs extra, incurring additional expenses


  • The Standard plan starts at $23 per user per month
  • The Pro plan starts at $35 per user per month
  • The Enterprise plan is available upon request

Challenges of Hosted Telephone Systems

There are many challenges that users may experience while using hosted telephone systems. Here are some key challenges associated with implementing a hosted telephone system.


1. The Upfront Cost

The upfront cost is one of the biggest challenges for a hosted telephone system. Depending on the provider, the initial setup fee can be high, and additional charges for installation and configuration may exist.

Users may need to pay for additional services or features not included in the original package. Budgeting for cloud telephony software without increasing expenses can be challenging.

2. Network Limitations

Another challenge with hosted telephone systems is network limitations. Depending on the particular type of system, users may require an internet connection with sufficient bandwidth to handle all calls coming through the system.

If fewer concurrent calls are going through at once, then latency or other issues may occur, leading to better voice quality or even dropped calls. In the event of an interruption in service due to a power outage or other issues, users will no longer be able to make or receive calls until service is restored.

3. Lack of Flexibility

A third challenge associated with hosted phone solutions is more flexibility regarding customization and scalability options. For example, some providers limit how many extensions can be added or how much data can be stored on their servers.

Depending on the provider’s policies and restrictions, users may not have access to certain advanced features that they would have if they were using an on-premise system instead.

4. Security Risks

Data sent over a hosted telephone network can be exposed to potential security risks such as eavesdropping or hacking attempts from outside sources. Businesses should take extra precautions by encrypting their data and ensuring that only authorized personnel have access to sensitive information stored within their systems.

5 Maintenance Requirements

The ongoing maintenance requirements associated with hosted telephone systems are a challenge to ensure users' optimal performance levels and uptime reliability.

Companies must ensure that their servers are properly maintained by regularly performing updates and ensuring all software components are up-to-date. This can eliminate potential vulnerabilities that could lead to outages or reduced performance levels over time due to aging hardware components or outdated software versions.

Average Pricing of Hosted Phone Service

On average, hosted phone services cost between $20-50 per user each month, depending on the features included in your plan. By assessing your needs and researching different providers, you’ll be able to find the perfect solution for your business that fits within budget constraints.

Investing in quality hosted phone service now will save time and money down the road while providing excellent customer support when needed most.


Choosing a hosted phone system for your business can be overwhelming, but with the proper research and knowledge, you’ll find one that fits all your needs. There are numerous options to choose from when it comes to finding the best-hosted phone system for your organization, so make sure to do adequate research before making any decisions.

Selecting a reliable provider ensures access to the features and services necessary for smooth operations. With these tips in mind and utilizing our comprehensive comparison guide above, choosing the perfect host will become much more manageable.


A hosted phone system typically requires VoIP-enabled PBX (private branch exchange) and internet access. Depending on the size of your business, you may need additional hardware, such as additional handsets and headsets, phone ports, cords, and wires to connect the PBX to your existing networks.

A traditional business solution is a SIP (Session Initiation Protocol) phone system. It requires setting up and maintaining hardware on-premises, while a hosted business phone system uses cloud technology to store all data remotely in the cloud.

A hosted business cloud phone system is typically more cost-efficient and more accessible to scale than a SIP-based setup. Hosted solutions offer advanced features such as automated attendants, analytics, conferencing tools, and more that are not available with traditional setups.

Last Updated: January 02, 2024