Best Hosted Phone System

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.

Pros	Cons
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

Name	Free Trial	Demo	Pricing
CallHippo	10 Days	Yes	$12.99/month
Nextiva	7 Days	Yes	$23.95/month
RingCentral	14 Days	Yes	$30/month
Vonage	14 Days	Yes	$19.99/month
Dialpad	14 Days	Yes	$23/month

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.

Pricing

• 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.

Pricing

• 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.

Pricing

• 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.

Pricing

• 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.

Pricing

• 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.

Conclusion

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.