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Hosted Phone System Vs Cloud Based Phone System - What is the Difference?
Here are the key features and comparisons to help you choose the right kind of phone system for your business, whether cloud based or something else.
There are multiple options when it comes to choosing a phone system for your business. Many brands are transitioning to the use of internet phone solutions to support remote teams and flexible communication. If you prefer to conduct business without the constraints of a physical phone system, you may consider a hosted or cloud-based solution instead.
The question is though, what are the differences between hosted phone systems and cloud-based solutions, if any? In this article, we will explore key features and comparisons to help you choose the best option for your business.
Key Differences Between Hosted and Cloud Phone Systems
The terms “hosted” (business VoIP) and "cloud phone system" are often used interchangeably, but they do have some minor differences.
Business VoIP, also known as Internet-based VoIP, is a broad term that refers to a range of services that allow businesses to make and receive phone calls over the internet. Cloud phone systems, on the other hand, are a type of business VoIP that utilizes cloud technology to power its phone service.
One key comparison between these two types of phone systems is the way they are set up and managed. A traditional phone system is a physical PBX system that is installed and self-managed on-site. This means that the hardware and infrastructure are owned and maintained by the business, which can be costly and time-consuming.
In contrast, a cloud phone system is hosted and managed remotely by a third-party provider. This means that businesses can access their phone system and make and receive calls over the internet, without the need for on-site hardware.
When it comes to billing, a hosted or cloud-based phone system is typically billed on a pay-as-you-go basis, with no upfront costs and more flexible pricing options.
In terms of technical features and capabilities, both hosted and cloud phone systems offer a range of options, such as call routing, voicemail, and conference calling. However, cloud phone systems often offer more advanced features, such as virtual receptionists and integration with other business tools. Additionally, cloud phone systems are backed by the provider's servers, which are typically more reliable and have higher uptime than on-site systems.
Both a hosted and cloud-based phone system allows businesses to access calls and communicate from anywhere with an internet connection. This makes it easier for businesses with remote employees or multiple locations to stay connected.
Overall, the choice between a hosted and cloud phone system will depend on a business's specific needs and budget.
Hosted and Cloud-Based Vs Traditional Phone Systems
Hosted and cloud-based phone systems have become increasingly popular in recent years as businesses look for more flexible and scalable alternatives to traditional phone systems. In this section, we will compare the key differences between hosted or cloud-based phone systems and traditional phone systems.
Other Considerations When Comparing Hosted, Cloud, and Traditional Phone Systems
When it comes to choosing a phone system, it's important to consider the differences between traditional, hosted, and cloud-based systems to gain an understanding of which option is best suited for your business.
Traditional phone systems require on-site equipment, which can be expensive and time-consuming to set up and maintain. They also don’t allow the flexibility of answering calls on the go or managing large remote teams.
Hosted and cloud-based systems are ideal for organizations seeking a low-cost setup and easy management. Pricing is flexible, which allows business owners to increase or decrease add-on services as needed.
In conclusion, the differences between hosted and cloud-based phone systems are minimal. They both allow businesses to communicate through calls and messages over an internet connection, without the need for on-site hardware. When both of these options are compared to traditional phone systems, they offer much more control and customization.
Hosted and cloud-based phone systems are cost-effective and support more of the features that modern businesses require to communicate effectively, both internally and externally.
There are several reputable providers that market their services as hosted, cloud-based, or both. Ultimately, the best choice for your business will depend on your specific needs, budget, and preferences.
If you’re interested in learning about Ring4’s online business phone system, you may find that it meets all of your phone needs without requiring additional software, hardware, or uptime! Click here to try Ring4 for free.
About the author
Ashley Grant is a content creator currently based in Richmond, Ky. Ashley grew up in Tampa, and attended the University of South Florida. Go Bulls! When she isn’t writing and or hosting her Bloggy Friends Show podcast, she loves trying new foods and beverages, exploring the city she lives in, and traveling as much as possible. In addition to ghostwriting for several small businesses and freelance writing under her own name for a variety of websites, she blogs about her lifestyle, working from home, and much more at FamousAshleyGrant.Website
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