WHAT IS A HOSTED SOLUTION?

When it comes to business phone systems, there are two main solutions: on-site and hosted. Both of these can be broken down further into a wider variety of phone technologies, but the decision to have your phone system located in your office or hosted by a third party is a major step.

WHAT IS A HOSTED SOLUTION?

A hosted phone system solution is one in which the actual software and servers are located off-site with a third party provider. The system relies on a network connection (likely the Internet) to give all of your computers and handsets access to the system and enabling the use of call routing and other features.

WHY CHOOSE A HOSTED SOLUTION?

There are a number of benefits offered by hosted solutions over in-house solutions. First of all, hosted solutions often improve the reliability of a system. The third-party provider typically has hundreds of servers tied together which handle fluctuations in demand. In addition, if any server goes down, the others can pick up the traffic instantaneously. An added benefit is that all of the maintenance of the hardware happens on their end, so there is no need for an IT team to deal with troubleshooting or setup.

Hosted solutions also offer a great ability to scale your phone system up or down according to your needs. Since the host has unlimited space on their servers, it is possible to add or subtract lines as necessary. It is a cost-friendly option for businesses of any scale.

HOSTED SOLUTION CONS

While many companies tout hosted solutions as the premier service, the reality is that they may not be the right fit for everyone. Small companies who don't need the extra server room probably will not benefit greatly from the hosted service overall. In addition, businesses who do not have reliable Internet access will not gain any reliability from the hosted servers on the other end. In terms of cost, it may be cheaper up front to choose a hosted partner. However, the cost of an ongoing subscription may be more than the cost of purchasing a standalone box for your office.

Hosted solutions are becoming increasingly popular as a way of increasing the range and reliability of phone systems, especially for mid-sized businesses and corporations. However, they largely rely on the same software solutions that are available for smaller scale operations and may not be the right fit for everyone. Your expected growth and the amount of equipment already in place at your office may offset the benefits of upgrading to a third-party host.