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Reduce VoIP costs with Hosted PBX Systems

Updated on March 31, 2011

VoIP Initial Expenses

VoIP has the ability to be a game changer for your business. Not just because of the reduced operational costs, but also because of how it changes the way your employees communicate with each other and with their clients. However, there's no denying that setting up an enterprise VoIP system in your business can initially be an expensive proposition which requires investment in a lot of infrastructure.

The first thing you need of course, is a VoIP server. Ideally, this should be a dedicated resource which will handle all incoming and outgoing calls to your office. Servers are expensive and because this one will be performing some specialized functions, it will need some specialized hardware. In addition to this, you require an administrator who knows how to maintain and configure the server software and keep it up to date as well as troubleshoot any problems that may arise.

Finally, as your organization grows you have to keep upgrading your VoIP systems both so that your resources can handle the additional load and also because a large firm functions very differently from a small one. Unless you have a dedicated team taking care of your VoIP infrastructure, it can become a pain to maintain and will divert precious resources from your primary business.

Don't build your own VoIP system
Don't build your own VoIP system

Hosted VoIP PBX to the rescue

There are VoIP firms which host all the hardware and software required for VoIP and allow you to use their network instead of building one of your own. But why switch to a hosted PBX system?

As mentioned earlier, it can get very expensive to make your own VoIP network. Companies can avoid all this hassle and expense by simply adopting a model where they don't have to install all the equipment and maintain it by themselves. They can outsource that job to specialists who take on the responsibility of ensuring that the VoIP system functions smoothly. A company that takes care of your VoIP needs also ensures that you have the ability to contact regular PSTN users through a VoIP gateway and are therefore called Internet Telephony Service Providers (ITSP). 

It's a bit like outsourcing the hosting and co location of your web servers to a third party. Almost no small to medium sized company these days maintains its own in house servers and manages them. Instead, they outsource the functionality to specialized providers who take care of the expensive server hardware and perform whatever maintenance is required. The same model holds true for hosted VoIP.

Depending on the ITSP in question, you can be charged in a variety of different ways and since there is a healthy competition in the industry, you have a lot of choices. VoIP services haven't yet been standardized yet and so what one firm offers you can vary greatly. Some may charge you for each new device you add to a given VoIP number. Some may charge you on a minute by minute basis and others can give you an "all you can eat" plan. Choose one that suits you best before you decide whom you want to open an SIP account with.

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