Hosted VoIP providers host and maintain their feature-enabling PBX in the cloud and manage the entire system virtually. There is no expensive, on-site equipment to maintain. Connectivity is achieved through the business’s existing broadband Internet connection, and system updates such as adding calling features or phone extensions are easily accomplished virtually (no phone vendor visits required). This often results in savings for business VoIP customers. In fact, Vonage business customers can save at least 25% on their phone bill.*
With traditional PBX phone systems, much of the system’s technology is installed on premise at each customer location, typically in a closet or server room. The initial installation will include hardware costs as well as labor expenses, and any system upgrades or required maintenance over time will require a scheduled phone vendor visit. Thus, service contracts are a common requirement. With POTS (plain old telephone service) there is no feature-enabling PBX to maintain – so many customers switching to a hosted VoIP system not only gain a full-featured solution, but also get pricing that is less than what they paid for their basic POTS service.