What is a hosted phone system and how does hosted VoIP differ from on-premise?

A hosted phone system (also called hosted VoIP or hosted PBX) is a cloud-based business telephone system where all the call-handling technology is managed in secure data centres rather than on your premises.

With a traditional on-premise PBX, you need expensive hardware installed in your office, ongoing maintenance contracts, and specialist engineers for any changes. A hosted phone system eliminates all of that – your provider manages the infrastructure, software updates, and security, while you simply connect IP phones or softphones to your internet connection.

Hosted VoIP vs on-premise PBX:

• Upfront cost – Hosted: minimal (phones only). On-premise: thousands for PBX hardware
• Maintenance – Hosted: included by your provider. On-premise: your responsibility
• Scalability – Hosted: add/remove users instantly. On-premise: may need new hardware
• Remote working – Hosted: built-in. On-premise: requires additional configuration
• Disaster recovery – Hosted: automatic failover. On-premise: single point of failure
• Updates – Hosted: automatic. On-premise: manual and often costly

For most UK businesses, a hosted phone system offers better value, greater flexibility, and future-proof technology. Compare hosted VoIP packages with Connection Technologies.