5 Reasons Hosted VoIP is Experiencing Explosive Growth


September 28, 2010 – Hosted VoIP is quickly
expanding its footprint in the small to mid-sized business (SMB)
marketplace because it dramatically improves an organization’s
profitability, reduces its risk and adds an unmatched level of
flexibility to its current operations. In layman’s terms, hosted VoIP is a
solution which enables businesses to utilize their Internet bandwidth
to handle their communications needs, rather than forcing businesses to rely on traditional
solutions, such as PBX hardware TDM switch that reside on site.
According to a report by AMI  Partners, “Hosted VoIP in the
North American SMB market is projected to expand from 2%
market penetration to over 30% by 2014.” Adoption rates are keeping
pace with these aggressive growth projections and these can be
explained by five key reasons:

Cost Structure

In today’s unforgiving economic environment, business
owners are being forced to reexamine their expenses to see
what can be eliminated, minimized, or streamlined. The fundamental
reason that businesses are adopting hosted VoIP technology is because
of the profound effects it has on the bottom line. Since, hosted VoIP is
able to “piggyback” phone usage on top of Internet bandwidth,
SMBs are able to enjoy substantial upfront cost savings, as well as
recurring savings when they implement hosted VoIP. The
reason for this is because businesses don’t need to buy
expensive systems or hardware anymore, instead they’re just
purchasing individual VoIP handsets. Instead of purchasing
hardware products, (PBX systems, desk phones, new cables, etc.)
businesses are receiving softwarecentric value (Connectivity, Call
Tracking and Reporting, Voice-totext transcription, softphones, etc.).
This means that a new phone system is no longer a capital
expenditure, but it’s simply a lower level operating expense. Plus, the
ongoing costs associated with hosted VoIP fluctuates as a
function of demand. It Puts Your Communications on
Auto-Pilot… For an SMB, resources are
scarce. Businesses don’t have the time, nor the resources to spend
dozens of hours training or supporting employees with new
technology. Instead of learning how to program button commands
or memorizing extensions, hosted VoIP requires the most minimal
levels of supervision possible and can be remotely handled by the
unified communications partner. Since it’s run off a simple web
interface, businesses don’t need extra IT staff to manage their
communications. With most providers it takes about five
minutes for someone to explain how you use the interface, and
you’ll probably end up figuring it out for yourself before they even
finish talking. One person can manage all the features, add users
and subtract users, so the IT department can focus on fulfilling
its other duties. Not only does hosted VoIP free-up labor hours,
but since it’s web-based, it can update itself and keep pace with the
ever-changing demands of today’s business environment.

Business Continuity

Power outages and natural disasters are threats facing all
businesses but hosted VoIP provides a way for organizations to
minimize the negative impacts associated with these occurrence.
Businesses are attracted to hosted VoIP’s ability to handle these
situations smoothly. The box that runs an SMB’s communications
system is off-premise in a secure location, and is backed up several
times over. What this ultimately means for organizations is that in
the event of a disaster, the business can continue to operate just as if
nothing had happened.


In today’s world, business owners are expected to know
what’s around every corner and they can’t afford to be locked into
inflexible technology. Hosted VoIP enables businesses to
neutralize the risk of the volatile economy. Where traditional phone
systems are affixed to a certain number of employees, hosted VoIP
can provide organizations with the flexibility they need to survive.
Whether scaling up, or scaling down, the costs of adjusting your
communications infrastructure to
meet your needs are miniscule.


Emergent businesses in the SMB marketplace are using remote
applications to enhance their productivity, whether they’re in the
office or not. Technology such as softphones enable organizations to
work from any location, at any time and still preserve the same levels of
professionalism exhibited by the largest companies in the market.
Hosted VoIP is an absolutely powerful technology that is driving
profitability and improving employee productivity, while
providing companies with a unique competitive advantage. In today’s
rapidly changing business environment, organizations need to
be agile and they cannot afford to be held hostage by static, on
premise technology. Hosted VoIP gives business owners the freedom
to adopt the latest in communications technology and
the peace of mind that it automatically happens.

Since 1981, Phones Plus has committed to establishing lasting
business relationships with our clients. Phones Plus offers
innovative voice, video, and data networking solutions that increase
our clients’ profitability and gives them a competitive advantage in
their marketplace. Phones Plus recognizes the
critical need for a communications company that combines leading
technology with top-quality service and support.
Our mission is to provide exceptional value through managed
services that eliminate technological obsolescence, ensure
a fixed cost for our business partners, and maximize the profits,
productivity, image, and competitive advantage of those
partners. Highly trained and motivated professionals give you
measurable results. 

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Why hosted VoIP is a good choice for
Hosted IP PBX

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3 thoughts on “5 Reasons Hosted VoIP is Experiencing Explosive Growth

  1. Hosted voip solutions are not suitable for residential VoIP use because we need to establish a service PBX hosted solutions. These solutions are mainly beneficial for the large enterprise corporations.

    1. Okay, so when a call comes in and the Line2 app isn’t open, it will automatically be foreardwd to your regular cell number as the guy stated in the video. But can you simply open the app WHILE the call is coming through and have pick it up on Line2, or no? Seems like a great app, but you’d have to keep the app constantly open in order to use it, and I wonder how much battery consumption that app uses. I’ll have to give this a try.

  2. Our services are business oriented and you’re right, in some cases VoIP is not beneficial for our customers. We look into each company and determine the benefits they could receive by using VoIP. Some examples where VoIP would be beneficial are if the company has a lot of people who work from home because they would be able to call one another like they would with an internal extension, or if the company does a lot of long distance calling because with VoIP you pay for the line not the number of calls.

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