Many companies today use VoIP or Voice over IP as one of their main communication tools. Aside from the fact that it provides an easily accessible and more cost-effective solution for enabling secure internal communication, the innovative communication technology also saves the company from the stress of having to contend with a myriad of different vendors when there issues related to telephony crops up. With hosted VoIP, installed and maintained by a reliable IT service provider, companies now only have to go to one source for both their telephone (local and long distance) and Internet communications needs.

There are two ways to put up a VoIP service for your business. You can either install premise-based equipment, or sign up for a hosted VoIP service. Nowadays, we have been seeing a rapid growth in the latter option. What sets hosted VoIP apart from the traditional premise-based private branch exchange (PBX) system, and why have so many businesses embraced this communication technology? This is where we shed some light on the matter.

Where the Offshoot Overtakes the Originator

Hosted VoIP actually evolved from PBX. Originally utilized as an organization’s manual switchboard or attendant console operated by a telephone operator, the telephone exchange tool took a somewhat wayward turn when Mark Spencer of Digium developed the first open-source PBX software toward the end of the 90′s. From a means that allowed in-house workers to make connections among the private organization’s internal telephones, they have become VoIP centers that were hosted by operators or hardware manufacturers. These modern IP Centrex systems still provide a means for efficient, cost effective internal communication but they have moved so far from the original concept of the PBX that the term barely applies anymore.

VoIP PBX uses the Internet Protocol to carry calls. Technically, nothing is being ‘exchanged’ anymore with this innovative communication device. The abbreviation PBX remains simply because it is widely understood.

The Efficiency of VoIP

From installation to maintenance, as well as configuration management and customized application development, hosted VoIP proves to be more efficient than premise-based PBX. Hosted solutions are less likely to incur post-installation problems since pre-installation site reviews are usually conducted by experts. Hardware and software upgrades are much more easily managed via a hosted VoIP solution than a premise-based PBX. The vendor or IT company manages the upgrade and puts it up once it is ready, making the transition smooth and stress-free. Any Hosted VoIP also costs significantly less because the amount of customer-premise equipment is minimized.

Small Businesses Stand to Benefit the Most

Because of the communication technology’s efficiency and cost-effectiveness, small businesses have the most to gain from setting up a hosted VoIP service within their company. The full featured phone system takes less time to install, less hardware to maintain, and even less money to spend for the small business IT operations. Administrative functions are performed using a browser-based Web portal on the Internet.

Small companies can leverage their professional image as they can have a single phone system for their headquarters, remote offices and remote users. Companies with multiple office or businesses that employ off-site workers or telecommuters can make use of hosted VoIP as their lifeline. Communication within the company can become much more efficient and cost-effective. All related parties can easily be contacted through the communication tool, making the relay of information much speedier and timelier than if there were separate in-house contact points.

Here at All Covered, we offer hosted Voice over IP services that can positively impact business and business communications. To learn how to avail of this service and other professional IT solutions, visit their website or call 886-446-1133.