What’s the Difference Between Hosted VoIP and Other Phone Systems?

As you explore the possibility of upgrading your telecommunications system, you will come across – or perhaps have encountered already – a variety of terms, labels, acronyms, and so on. And while all of this terminology and jargon may be ordinary for experts in the telecommunications field, it may have you scratching your head…or perhaps suffering from a headache!

And so, the Votacall team is pleased to provide you with this simple, clear and easy-to-understand overview of the differences between hosted VoIP phone systems and other phone systems.

Hosted VoIP Compared to Traditional PBX Phone Systems 

PBX (“private branch exchange”) phone systems have been around for decades, and are what most people have experience with – not because it is superior, but because it is what the traditional phone companies use.

In a head-to-head comparison, hosted VoIP outperforms PBX on several levels. The first – and for many business owners, the most important – is cost; with hosted VoIP being anywhere from 50-80 percent cheaper on an annual basis (i.e. it’s not just one-time savings, but ongoing savings over the life of the system). In addition, hosted VoIP phone systems offer many more features than PBX, including email-to-text and voicemail-to-email. What’s more, hosted VoIP phone systems support simultaneous ringing, which is far superior to conventional hunt groups and ring groups (learn more by reading our recent blog post here).

Hosted VoIP Compared to SIP

This is essentially not a comparison – because SIP (session initiation protocol) and hosted VoIP are part of the same technology ecosystem. Basically, SIP is what governs the data/voice that is transmitted across a VoIP phone system (note that data doesn’t just include text, but also include video, media distribution, etc.).

Hosted VoIP Compared to IP Telephony

IP (internet protocol) telephony refers to a set of standards that governs a digital system of standards. So for example, routers must align and conform to these standards in order to be functional, as must certified VoIP phones, and thousands of other hardware devices that use the internet and/or enhance internet productivity. Essentially, hosted VoIP can be viewed as an important piece of the overall IP telephony puzzle. They are not actually two separate types of phone systems (nor are they synonymous, even though they both have IP in their labels!).

Learn More

To learn more about comparing various phone systems – including those listed above and others that you may come across in your research – contact the Votacall team today. Your consultation with us is free, and we are always happy to help business owners and decision-makers get the facts they need to avoid hassles and headaches!

For more information on hosted VoIP phone systems and the truth behind myths about them, download our FREE eBook: