In most cases yes, it absolutely does. There are, however, specific requirements that need to be met to get the best out of a hosted VoIP service. With that question out of the way, let us find out what hosted/virtual VoIP actually is.
We are all aware of a PBX (private branch exchange) system, which exists in offices and buildings. It is a piece of equipment that has multiple phone lines coming in, which are shared with a higher number of extensions. An operator sitting by the PBX equipment answers the incoming calls, and forwards the calls to specific phones via phone lines inside the building. So, we need elaborate hardware that requires specialist knowledge to operate, and someone to attend to it.
By contrast, a hosted/virtual PBX does not require any software or hardware to be maintained by you. A service provider maintains the system, and the calls are routed from the hosted/virtual PBX to your telephones, directly, without any sharing of lines. It’s similar to the concept of website hosting, but instead of hosting your website, the service provider hosts your virtual PBX.
The Basics of hosted VoIP and a The Virtual PBX
The way technology is advancing, especially in the field of communications, small companies are now able to narrow the gap between themselves and the larger companies but without a large capital outlay. The case in point is the hosted/virtual PBX system.
In place of expensive telephony equipment you install on your premises, a virtual PBX system is a phone system – fully functional – available over your existing private network or your existing Internet connection. You just need to subscribe to a VoIP hosting service provider that offers what you want. As your business grows, you can arrange to upgrade your hosted telephone system, enabling you to handle higher volumes of calls and add extra telephone extensions, queue extensions, IVR extensions, mailboxes and more.
Virtual PBX systems are very affordable, and offer the following benefits, among others, to companies of any size:
- They typically have a very low initial start-up cost, since no traditional PBX hardware/software is needed on your premises.
- Upgrades are instant and cost-effective and, since they are hosted, require minimal technical support or maintenance.
- Often times, they will offer cheaper calling rates to cellular, national and international telephone numbers (least-cost routing)
- In some cases, free calling between extensions, regardless of geographic location (virtual office)
- Real-time access to your hosted system through the Internet, regardless of which city or country you, or your staff, find themselves.
- Most will provide an Interactive Voice Response (IVR) service, negating the need for a separate IVR system, which can sometimes costs thousands.
- Features such as voicemail that can be emailed to you and real-time, digital call recordings which are available for download through a web browser.
Advantages of hosting your telephony compared to a traditional PBX System
No one virtual PBX system is complete in itself, with a variety of service providers offering a wide variety of features. However, all the virtual PBX systems have quite a number of advantages over the conventional PBX systems. A virtual PBX system offers all the features of the conventional one, and more.
To begin with, you do not have to maintain a large physical piece of equipment, and have it operated by someone. A service provider maintains your own private virtual PBX. In the case of the conventional, premise based PBX system, you cannot call outside the office without incurring additional costs.
The advantages of the virtual PBX is that you can route your calls to any number, anywhere in the world, unlike the office based PBX, where calls can be routed only to phones physically connected to the system. Distance and location does not matter to employees as they can receive business calls wherever they are.
Hosted Virtual PBX systems are a great alternative for smaller companies who do not have the wherewithal to tie down their capital in PBX equipment. The initial start-up costs are also very low.
Your service provider takes up the burden of the complex system management in the case of the virtual system, which would otherwise be your headache, if you have the conventional PBX system.
The disadvantage of installing a conventional PBX system is two fold. One is that you may soon outgrow the small system you may have installed, and replacing your system – say, every two years – to suit your growth is quite an expensive proposition. Second, you may decide to install a larger system right in the beginning, tying up your capital by paying more for a system you do not need right now.
The hosted/virtual PBX system is not size dependent, but is based on the number of users. You can scale up, or scale down your system whenever you wish to, and pay only for what you use.
The conventional PBX system has the capacity to handle a limited number of incoming calls – depending on the number of incoming lines installed in the system. When more calls come in, the caller receives a busy signal, and chances are you may lose business. Upgrading, to add more incoming lines, is expensive. On the other hand, virtual PBX systems handle more incoming lines than any existing conventional system can handle. The caller never hears a busy signal, and if they ever do, then it may be time to change your service provider.
A hosted/virtual PBX system makes great sense for businesses that have distributed employees, and those who need to keep their initial capital outlay low. It is also advantageous for companies, small or large, whose incoming call capacity is large, expect their requirements to change, and wish to offer toll-free and low-cost calls to its customers and employees.
Keep in mind that not all virtual PBX systems are created equal, and there are choices available for you to select – to suit your style and type of business. Do some research before spending your money and make sure you deal with people who are familiar and experienced with Voice over Internet Protocol (VoIP) and PBX hosting, to avoid unnecessary expense and delays.
Author: Harry Pontikos
Article Source: EzineArticles.com
Provided by: Programmable Multi-cooker
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