What is Private Telephone System Hosting? Is it Right for Your Business?

person using business phone

As you begin to revamp your business and integrate new technology into your workflow to adapt to the 21st century, there is one traditional piece of technology that most businesses delay evolving: phone communications. The primary reason for this is that phone lines are tangible and complicated, meaning reworking them is expensive. However, there are a number of benefits to transitioning to a privately hosted phone system that can make undertaking the process worth it.

What is Private Telephone System Hosting?

A private telephone system hosting service is a private server that uses Voice over Internet Protocol (VoIP) to store call data in an off-site location and allows individuals to make calls over the Internet rather than phone lines. Common examples of private telephone system hosting that could be seen in the workforce include video conferencing, voicemail-to-email services, and generic phone calls.

Going slightly more granular, a person can place a telephone call where the data packets are then reassembled from the sound and played back on the server as audio. These packets are then sent through the server, broken up, and received on the other end. This allows a user with a phone to speak with somebody who may be listening to them on a smartwatch, for example.

To determine whether upgrading to a private phone hosting system is right for you, consider some of the following benefits and drawbacks:

Benefits of Private Hosting

  • Hosted phones can cut costs associated with traditional phone services by as much as 30% in certain circumstances
  • Hosted phones have a high level of scalability, meaning multiple lines can be added on or additional features
  • Calls can be placed from anywhere in the world at any time so long as there is an Internet connection
  • Hosted phone lines are often more secure than traditional lines

Drawbacks of Private Hosting

  • If there is no Internet connection, then you will not be able to place a call
  • You may be locked into a vendor for longer than you are hoping for
  • There could be unexpected interference with the call

Traditional vs. Private Telephone System Hosting: Which is Right for Me?

Determining whether or not private phone system hosting is right for you is a business-to-business decision. Those who have a large traditional infrastructure setup may not get value from uprooting everything to switch over at this current point in time. However, if your organization is already taking steps to modernize and is integrating into cloud hosting for other services, transitioning communication systems over now can be an excellent decision. When migrating services, only migrate one portion at a time, such as starting with phone system hosting, so that you can troubleshoot potential issues when they arise.

Improve the communication infrastructure of your organization today

Regardless of what your business actually does, communication is a staple of success for any organization. To that end, enhancing phone communication within your business can offer many benefits, including reduced costs, faster speeds, and more features than a non-hosted phone system. If you are a business in the Cleveland, Columbus, or Akron area and need assistance implementing this or other IT measures into your business, don’t hesitate to contact us at Warwick to discuss how we can help.