What Is Hosted VoIP And What Are Its Benefits

The term Voice over Internet Protocol or VoIP stands for all technologies and protocols that go into the transmission of voice communications and other multimedia data over the Internet. It can also stand for services such as broadband telephoning, Internet protocol communications and Internet telephony to name a few. Very simply put therefore, voice over Internet protocol refers to the clutch of services that go into delivering phone services through the Internet. This is different from the conventional telephone connections which work through phone companies. Normally, VoIP services are delivered through a special phone.

One of the biggest benefits of using VoIP services are the very cost-effective pricing systems. Instead of paying normal telecom charges, a company can save a lot of money by opting for VoIP phone services. Normally an organization will rely on an in-house private branch exchange to make and receive calls. But, today more and more companies are turning to something known as hosted VoIP services. There are plenty of advantages of switching from in-house telecom systems to entrusting your communication needs to a third-party.

At the most obvious level, going in for a hosted VoIP service means that the business is freeing up its resources to continue concentrating on its core business area rather than worrying about maintaining its telecom equipment. While going in for hosted services, an organization also need not worry about the costs and investments involved in setting up the telecom infrastructure for itself. It also need not look for qualified personnel to operate and maintain this exchange system. By entrusting a third-party service provider who knows what he is doing, the organizations can do away with all concerns related to maintenance and troubleshooting when it comes to its exchange systems. Plenty of service providers are also offering quite a few services free of cost such as world dial-up.

Hosted VoIP will also mean that it is up to the service provider to take care of adding new connections, upgrading to new software and looking after the maintenance in terms of any problems that may occur in the system. VoIP services also cost less than conventional telephone systems. Primarily these cost savings arise because an organization ends up using one network to carry both voice and data transmissions. Otherwise it would be necessary for the organization to go in for separate networks for data and voice and other transmissions. This cost factor becomes even more important when an organization needs to do a lot of international calls.

James is a writer and blogger with 5 years experience.