In the world of telecom words have different meanings. At Gaynor Telesystems we understand we talk a funny language, and we are here to help you navigate the differences and choose the right solutions for you and your company. When it comes to a hosted solution and business VoIP you may be talking apples to apples or you may be talking watermelon to kiwi. So let’s discuss hosted and business VoIP.

It is not wrong if you call a hosted solution a business VoIP solution, but saying business VoIP is hosted would not be correct. On the most basic level, business VoIP simply refers to using different protocols to run business phone systems. Hosted is having your phone system in the cloud, and only paying a monthly expense for the use.

Now the nuts and bolts. It’s okay if even after this you have questions. This is not a simple topic.

Business VoIP

As the industry is changing so is the meaning of the words. If you go up to a business associate and say business VoIP, you are talking a premise based solution. This is normally a capital expenditure and is a long term investment. It is also a solution that works with your network. It becomes a part of your network and uses network equipment. There are security measures in place to allow for business communications to happen without disrupting your data network. 

When you decide you want a business VoIP solution, your vendor will ask for a network diagram, maybe even see if you want to have a network assessment done. These are important since you are integrating your phone system into your data network. Normally, your telecom vendor will work very closely with your onsite or even remote IT manager to make sure the new business communication solution does not negatively impact the data operations.

Hosted Solution

This is also known as a Cloud Solution. It really is that simple. The features and functions all happen in the cloud. As the business owner you pay a monthly contract fee to have telephone service. Depending on the service provider (ShoreTel Sky or NEC UCaaS) you can choose your dial tone type, rental of handsets, features and more. The set up and management of the system is done mainly remotely. The equipment that is located in your office is a couple pieces of networking equipment and the handsets on the desks of your staff.

Your bandwidth is the critical factor in your deployment of a hosted solution. Your bandwidth requirements will increase based on the number of handsets and your call volume. You are no longer having to buy/pay monthly for phone lines, you pay for bandwidth.

The reason why hosted is becoming such a wonderful choice for businesses is simply because it is an on-going expense, not a capital purchase. Since it is a monthly fee, there is no large upfront purchase price. The costs of good, reliable internet service has gone down, thus allowing this new type of communication solution to become affordable for clients big and small.

Our hope is to educate you on the basic differences of business VoIP and a hosted solution. We know you may still have more questions, and we are here to answer those! Feel free to fill out the form below!  

About Us

Gaynor Telesystems Inc. has been proudly serving the North State Communities of Chico, Yuba City, Marysville, Eureka, Arcata, Sacramento, Davis, Woodland, Redding, and Red Bluff for more than 40 years. We hope the information you found in this blog was useful. To learn more about how Gaynor Telesystems Inc. can help you install, maintain or service business communication solutions, please contact us at 877-Gaynor1.