11 Advantages Of Hosted VoIP Over Traditional Phone System

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VoIP has grown by leaps and bounds since it was introduced in 1995. Regardless of the size of the business, people are switching to hosted VoIP solutions. Thanks to its functionality and variety of features.

Over 35 million VoIP lines were added in the US between 2010 and 2018, according to Statista. VoIP offers unmatched reliability, cost-effectiveness, and many impressive features, which will enable the market to reach $55 billion by 2025.


Here are the 11 compelling advantages of why you should switch to hosted VoIP over a traditional PBX phone system:

1. More Savings: 

Cost is always a central concern, especially for small and medium businesses; but, hosted VoIP comes with exceptional cost-saving benefits every business would appreciate. For example, traditional phone charges you per minute of call time; however, hosted VoIP services include monthly charges from your respective ISP. Thus, pay-as-you-go expense is the most significant advantage of VoIP over the traditional phone system. 

2. No Upfront Costs Involved:

The traditional on-premise phone system involves installing multiple lines of wires around the office. If you need to make multiple calls simultaneously, you have to install so many phone lines, which adds up the cost quickly. Hosted VoIP eliminates the need for such upfront capital needs.

3. No Hardware, No Maintenance:

This advantage of hosted VoIP over a traditional phone system is related to cost-effectiveness. A trusted VoIP provider ensures to provide their clients with the most updated software and hardware. They will handle all maintenance and upgrades off-site. It saves your IT resources a lot of time which can be devoted to other crucial projects.  

4. Rain Or Shine, You Can Continue Your Business:

Voice over Internet Protocol is highly reliable. All of us are aware of how the global pandemic brought almost all business operations to a halt. The sudden spike in virtual meetings during COVID19 is proof of how VoIP has prevented mass work stoppage.

In such unwanted events or natural disasters, VoIP technology comes in extremely handy. It provides business continuity and makes the transition to remote work a breeze. 

5. Hosted VoIP Is More Than Just Voice Calls:

VoIP has simplified conferencing. Though traditional phone systems also allow for conferencing, you will end up paying more for hosting multiple callers. In VoIP, these features are native, and the cost is included in what you are already paying. 

An additional advantage is, you can also make video conferences with a hosted VoIP to solve any issues or conduct presentations remotely. 

6. VoIP Allows You To Scale Your Business With Add-On Features:

The add-on features of a hosted VoIP make this technology flexible and scalable. Some startups want to kick start their journey as cost-efficiently as possible. Also, there are well-established businesses that look forwards to integrated communications. 

VoIP provides an array of additional features that can transform a business:

  • Data integration
  • Remote management
  • Chat
  • Call distribution
  • Voice recognition
  • Chat

 A traditional phone call system can’t provide these features. 

7. VoIP Is Portable, Easily Accessible:

Telecommuting is one thing. One advantage of hosted VoIP is that it makes the service mobile. This means if you outgrow your business or you need to change your business location, you can easily transfer your VoIP. In other words, VoIP is portable and allows the employees at different locations to access the service without any hassles.

8. Offers Better Integration:

VoIP offers easy integration with other business systems and boosts a business’s efficiency. You don’t have to modify the existing IT infrastructure. Be it Salesforce, Microsoft Team, or NetSuite, VoIP providers integrate with third-party solutions and make communications across different channels easier. Moreover, integrating VoIP with a customer management tool helps you get insights into your customers’ behavior.

 9. VoIP Offers Better Security Over Traditional Phone System

Businesses are always at risk of data breaches and fraudulent phone calls. With IP technology advancements, like encryption protocols, VoIP services come to your rescue. Hosted VoIP providers make sure to protect their networks and give their clients peace of mind. Security audits are performed regularly, and automated alerts are set to inform you in the case of any suspicious activity.

10. VoIP Is Easy To Manage:

You don’t have to earn a degree in telecommunication to manage VoIP. From running reports, uploading the hold music to changing the answer rules, employees and administrators can easily do it. With a traditional phone system, you need to have a dedicated partner to make any changes. But, with VoIP, you can make changes with just a few clicks.

11. Encourages Unified Business Communication:

Many VoIP vendors offer a complete package of business tools. You can make phone calls, leverage add-on features, and integrate valuable data, all on a single network. Doing so helps you achieve better team collaboration, quick troubleshooting, improved customer service, and more transparency.


Hosted VoIP for business communications is becoming a norm for good reasons. Businesses are embracing this technology and leveraging it to get a competitive advantage. If you haven’t made a transition from traditional phone systems to VoIP, it’s high time you do it.


Author: Megha Verma


Bio: Megha Verma is a Customer Relationship Manager at Signity Solutions. Her passion is to learn new creative data-focused marketing and advertising concepts both in B2B and B2C contexts.