In its early days, VoIP had a reputation for being unreliable. Quality during voice calls was usually choppy, video streaming was nearly impossible, and downtimes happened often. However, it’s been years since VoIP was first introduced; and as the infrastructure behind it improved, so did its features.
Still, a lot of businesses today refuse to give up their traditional phone systems. So we’re taking a closer look at the real advantages of switching to VoIP, specifically Hosted VoIP services, and making the case for why technology will win—especially given the needs of today’s modern businesses.
What is hosted VoIP?
Hosted VoIP otherwise known as Hosted Voice over Internet Protocol is a communication solution that operates through an internet connection as opposed to traditional phone lines. It enables users to make and receive calls on connected devices.
VoIP phones are perfect for growing businesses as they come with an array of call management features. Users can activate auto-attendants, voicemail-to-email services, and call routing, enabling them to keep calls and messages organized. Another major advantage of using hosted VoIP is being able to make calls even when there is no cell coverage and having strong and stable calls even when the cell coverage is weak.
What are traditional landlines?
Traditional landlines are traditional phone lines which have been in use since the late 1800s. They use physical wires to transmit voice signals, operating through the Public Switched Telephone Network (PSTN).
Landlines work by converting your voice into electrical signals that travel through the wired network. The PSTN ensures that calls are routed efficiently, ensuring clear communication.
Landlines do not depend on the internet, so they remain functional during WiFi outages — making them a dependable option. And in the instances where they are connected, they provide reliable call quality and basic functions like caller ID and voicemail.
VoIP VS landlines: Why VoIP is superior
Businesses are starting to use Hosted VoIP for its cost efficiency, advanced features, and unmatched flexibility. Let’s take a look at VoIP vs landlines and why businesses are switching to VoIP:
#1. Technology helps bring down the cost of business communications.
Cost has always been a motivating factor when it comes to companies deciding whether or not they should make the big switch. Fortunately, Hosted VoIP makes it possible for small and medium businesses to enjoy enterprise-level telephony and communication features, at a fraction of the cost.
In an effort to compete, landline companies have begun to offer numerous calling options that hope to match Hosted VoIP’s price point. However, given the versatility and functionality that the technology itself offers, landlines fall significantly short.
In addition, traditional phone systems are maintained in-house by you, which can prove to be expensive both in terms of time and money. Hosted VoIP services, run on the Cloud, means it’s more cost-efficient without requiring a dedicated in-house team to maintain.
#2. Hosted VoIP makes communication more accessible and convenient.
Hosted VoIP allows users to connect their devices and in-office computer applications via a central system that streamlines functionalities and data access. This makes it easier for teams, whether they’re based in the office or working remotely, to coordinate because all the team members have access to key features facilitating collaboration.
The entire system is very easy to set up and integrate. It also allows employees to use tools they’re already comfortable with, such as their smartphones, computers, or tablets.
#3. Hosted VoIP has multiple features that support business growth.
Traditional phone systems are designed to provide a solid and reliable way to communicate. Companies have long depended on landlines as a way to reach and talk to clients and customers. However, thus far, only blue-chip organizations had the option to expand their features due to cost and infrastructure.
Hosted VoIP levels the playing field for businesses, regardless of their size. With Hosted VoIP, a company, no matter how small, can enjoy advanced calling features, instant messaging, mobility, and video streaming.
#4. Hosted VoIP is reliable.
Hosted VoIP relies on the Internet to run. In the past when the Internet itself was unable to offer a reliable network connection, VoIP suffered because of it.
Times have changed and today we depend on the Internet because it’s ingrained into the way we do things, whether catching up on favorite TV shows, communicating with others, or utilizing it for business purposes.
That said, Hosted VoIP has advanced to now rival the voice quality of traditional telephony in terms of clarity and reliability—all at a fraction of the cost.
Given these four reasons, it’s easy to see why a VoIP phone system anchored on the convenience of technology will win. VoIP networks are more cost efficient, offer more functionality, are easier to use, are just as reliable as landlines, and can now provide great call quality.
When to consider switching to hosted VoIP
Switching to VoIP can be a smart move if your current phone system no longer meets your needs. The first thing to do is to evaluate the limitations of your existing setup:
Evaluating your current system's limitations
- High costs: Traditional systems often come with steep maintenance fees, expensive hardware upgrades, and higher call rates, especially for long-distance or international calls. Hosted VoIP, on the other hand, offers a cost-effective alternative with lower call rates and minimal upfront costs.
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Reliability issues: If you’re frequently facing downtime or disruptions, it might be time to switch. Hosted VoIP systems, managed by professional providers, typically offer high reliability and uptime thanks to cloud infrastructure.
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Lack of modern features: Businesses relying on outdated systems may miss out on essential features like call analytics, video conferencing, mobility, and integrations with other software. Hosted VoIP provides these advanced features, helping businesses stay competitive in a tech-driven world.
Benefits of hosted VoIP for growing businesses
VoIP is excellent for growing businesses due to the scalability and flexibility it offers. As your business expands, hosted VoIP makes it simple to add or remove users without investing in expensive hardware or extensive infrastructure upgrades. This scalability ensures that your communication system evolves with your business, removing the need for disruptive overhauls.
Additionally, Hosted VoIP supports flexible working environments, which is one of the most important factors for growing businesses with remote teams or multiple locations. Employees can stay connected from anywhere via smartphones, laptops, or VoIP-enabled devices, ensuring seamless communication across the workforce. Integrations with tools like CRMs and project management software can help further streamline workflows and enhance productivity as your business scales.
If your current phone system feels outdated or struggles to meet your business needs, now is the perfect time to evaluate its limitations and consider hosted VoIP. The benefits of VoIP for businesses are clear: better functionality, improved communication, and a phone system that grows with your business.
Take the next step by consulting with a trusted VoIP provider or scheduling a demo to see how VoIP can transform your business communications.
