Hosted VoIP phone systems have removed the hardware and technology limitations of traditional phone systems. With hosted VoIP, the feature-enabling PBX is provided by software running on a cloud-based architecture versus fixed hardware in a company’s server closet. By simply making adjustments to software that sits in the cloud, hosted VoIP providers can provide robust features to an entire customer base, without the need to upgrade hardware or software in every customer location. You need only have access to high-speed Internet to enable a hosted VoIP phone system.
Until several years ago, business telephony had been grounded in the same technology for decades. The traditional “on-premise PBX” model delivers business phone functionality by installing and maintaining expensive hardware between the wire connection and employees’ desks (usually in a closet or server room at the business). The PBX must be serviced by the phone vendor at each customer location to add or update features, add phone lines, or provide any level of maintenance – which can be costly and most often requires a service contract. Traditional “POTS lines” (plain old telephone service) lack the robust business features that so many of today’s businesses require.