Hosted VoIP Phone Systems for business make good economic sense for many small to mid-sized companies. In reality, recent studies find that over one-third of all companies are using a VoIP call system, with another one-third being smaller companies with less than fifty employees. A hosted VoIP Phone system is an extremely cost-effective solution for both small and mid-sized businesses and allows them to save on long-distance telephone costs while still maintaining the features and quality of a full-service traditional telephone system. This makes it an ideal solution for many companies and the advantages of a hosted VoIP Phone system for business will be detailed further in the sections below.

Many of the larger companies are switching their telecommunication departments over to VoIP, but smaller companies may not be ready for this drastic change. Smaller companies often do not have the available technology or the staff to dedicate to maintaining a call center. Hosted VoIP Phone Systems are an ideal alternative because they eliminate all of the technical issues of VoIP providers, including maintenance, upgrades, configuring, and troubleshooting. You simply purchase an IP-based phone system from an Internet Service Provider, and your own private DSL or other high-speed connection becomes available. You can literally install VoIP Phone systems in minutes and use them from virtually anywhere.

One of the main disadvantages of a hosted VoIP Phone system for business is the reliance on a single telephone network. Although VoIP Phone systems utilize IP networks to transmit the calls, they are still bound by the same constraints as a conventional telephone network. For example, even though an IP phone system utilizes VoIP software and does not use any analog wiring, the cost savings from VoIP telephone systems do not automatically translate into lower costs to consumers. Hosted telephony provides a number of options and features for small businesses and home users that may not be available through a dedicated business solution. Many customers report that switching to hosted telephone networks has reduced their communication costs.

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