Before we delve into the differences between hosted phone systems and cloud-based phone systems, let’s first understand what they are.

What is a Hosted Phone System?

A hosted phone system is a telephony solution that is hosted by a third-party provider. The provider manages the system, and businesses pay a subscription fee to use it. The system is typically delivered over the internet, and users can access it from anywhere with an internet connection.

What is a Cloud-Based Phone System?

A cloud-based phone system, also known as a virtual phone system, is a telephony solution that is hosted in the cloud. The system is delivered over the internet and offers a range of features such as voicemail, call forwarding, and virtual extensions.

Comparison of Hosted Phone Systems and Cloud-Based Phone Systems

Now that we understand what each system is, let’s take a look at how they differ from one another.

• Cost

One of the main factors businesses consider when selecting a communication system is cost. Hosted phone systems typically require businesses to invest in expensive hardware, whereas cloud-based phone systems can be set up with minimal hardware investment.

• Scalability

Another factor to consider is scalability. Hosted phone systems offer limited scalability, as businesses are often restricted by the number of lines and handsets they have. Cloud-based phone systems, on the other hand, offer unlimited scalability, as businesses can add and remove virtual extensions as needed.

• Reliability

Reliability is another key consideration when selecting a communication system. Hosted phone systems rely on the internet connection, which can be unreliable at times. Cloud-based phone systems, however, offer greater reliability as they use multiple servers across multiple data centers.

• Maintenance

Maintaining a communication system can be a significant burden for businesses. Hosted phone systems require regular maintenance and updates, which can be time-consuming and expensive. Cloud-based phone systems, however, are maintained by the provider, reducing the burden on businesses.

• Features

Both hosted phone systems and cloud-based phone systems offer a range of features such as voicemail, call forwarding, and virtual extensions. However, cloud-based phone systems often offer more advanced features such as auto-attendants and call analytics.

Which System is Right for Your Business?

Now that we have compared the two systems, it’s important to consider which one is right for your business. If your business has a limited budget and requires a simple communication system, a hosted phone system may be the right fit. However, if your business requires scalability, reliability, and advanced features, a cloud-based phone system may be the better choice.

Can businesses add and remove virtual extensions as needed with a hosted phone system?

Yes, businesses can add and remove virtual extensions as needed with a hosted phone system. Here’s some more detailed information on how this works:

• A hosted phone system is a telephony solution that is hosted by a third-party provider. The provider manages the system, including the virtual extensions.
• Virtual extensions are telephone numbers that are not tied to a physical phone. They can be used to create a virtual phone system, allowing businesses to route calls to different departments or individuals without needing separate physical phone lines.
• With a hosted phone system, businesses can add or remove virtual extensions as needed by contacting their service provider. This can usually be done through an online portal or by contacting customer support.
• Adding a virtual extension typically involves selecting a new telephone number, choosing a name or description for the extension, and configuring call routing rules for the extension (such as forwarding calls to a specific phone or voicemail box).
• Removing a virtual extension is usually just a matter of contacting the service provider and requesting that the extension be deactivated. Any calls to the extension will be routed to another destination (such as a main company phone number or voicemail box) after the extension is removed.

Here’s a table summarizing some of the key features of virtual extensions in a hosted phone system:

Overall, virtual extensions are a flexible and powerful feature of hosted phone systems that can help businesses streamline their communication and routing processes.

Hosted phone systems and cloud-based phone systems offer numerous advantages over traditional phone systems. Both have their unique benefits, and businesses must consider their specific needs when selecting a communication system. Ultimately, the right system will depend on your budget, scalability requirements, reliability needs, and the features you require.