The Difference Between Hosted VOIP And Traditional Phone Systems

VOIP stands for “voice-over internet protocol“. And hosted VOIP phone systems are increasingly being used by business internet customers due to the fact that it has many advantages. But this type of phone system also has a number of disadvantages, which is why being informed is so important if you own a business and are thinking about implementing a hosted VOIP system.

There are several differences between the traditional phone system a business employs and a hosted VOIP system.

The Traditional System
A traditional phone system consists of several individual systems which are installed locally, and then connect to a local exchange using local phone lines. These individual phone systems, which are also known as PBXs, may or may not be made by the same manufacturer.

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Phone numbers in a PBX system will differ, as they are determined by site as well as the local BT exchange. Because separate numbering patterns are used in each location, extension numbers will differ, even across one company.

Along with numerous software upgrades to PBX systems, a new system will need to be purchased should a company decide to relocate, which can be expensive. Another option is to attempt to install the old PBS at the new location, which can cause significant down time for a business. This is because new phone lines will have to be run, and new numbers from the exchange obtained.

The Hosted VOIP System
In the hosted VOIP scenario, only one phone system is used. Located in a data center, the VOIP system doesn’t utilize any local phone lines. Instead, anyone wishing to connect to the system does so via the internet.  In a managed network, each call made is free as long as it isn’t made using the public phone system, to which the VOIP system is connected to by default.

Any range of numbers available via hosted VOIP can be chosen, as they are not connected to any physical phone line.  Once assigned, chosen numbers can be pointed anywhere within a business’s network that the owner chooses.

Upgrades with the VOIP system occur regularly and usually outside business owners to minimize downtime. Relocating a VOIP system involves simply unplugging it from one location and plugging it into another.

Benefits of Hosted VOIP
A major benefit of the hosted VOIP system is that it is cost-effective. For those businesses who have employees, customers, or associates around the world, any international calls are free. As well, the owner of a VOIP system can implement any number of features without having to pay more for the privilege.

No dial tone needs to be purchased with a hosted VOIP system. In the traditional phone system scenario, many dial tones may need to be purchased, which can significantly drive up costs. Video calling is another feature that hosted VOIP offers automatically.

Disadvantages of Hosted VOIP
Whether it be the nature of the technology or its newness, the quality of the calls experienced on a VOIP system may not be comparable with the quality you may receive from a traditional system. This is due to the fact that a VOIP system may access landline systems, which is an analog-based entity. As well, traditional systems can withstand events that can knock out connectivity to a VOIP system. For example, if something happens with your internet provider that causes the connection to be lost, connection will also be lost to your VOIP system.

If the idea of implementing VOIP into your business is something you’re unsure about, there are many ways to learn more about the pros and cons, whether it be by going online and researching this system type, or contacting your local VOIP professional.

Guest author Jesse Schwarz writes on a variety of topics, particularly related to technology.  He helps consumers review internet service options available to them, as well as addresses internet safety for children. You can also find

Rizwan Ahmad
About the Author:
This article is contributed by Jesse Schwarz and posted by Rizwan Ahmad Author and founder of, He is a tech blogger from India and he loves to share his thoughts by writing articles on this site to the different topics related to technology world,
Rizwan Ahmad
Rizwan Ahmad

Rizwan is an avid mobile geek and a gaming lover. He loves to keep a tab on new tech and loves to share the latest tech news and reviews on Smartphones, Gadgets, Apps, and more.


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