Hosted Phone Systems [A Business’s Guide]

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Hosted Phone Systems [A Business’s Guide]

The quality of your phone system is critical to the effectiveness and efficiency of your business. Learn how you can transform your business by ditching the old school phone systems and upgrading to a hosted phone system.

A hosted phone system is any phone that requires access to the internet, and that is hosted away from your business location. One example would be a Voice over Internet Protocol (VoIP) system. A VoIP system will route all of your calls via the internet, as opposed to traditional phone lines. 

With a hosted phone system, apart from the initial setup costs for compatible handsets, modems, routers, and switches, there’s no need to allocate additional capital for your hosted phone system.

How do Hosted Systems Work?

Modern, hosted phone systems exist in the Cloud online. Instead of relying on localized hardware to store information, the Cloud allows information to be stored on the internet, so no matter where you are, you have access to the information you need to get your job done. As long as a device has internet access, your employees can do business from virtually anywhere, even using your business phone number. 

The Benefits of a Hosted Phone System

There are a lot of factors to consider before making the switch to a hosted phone service. It’s best to ask a trusted IT provider like Millennia what the pros and cons are and what type of system is best for you. To get you started, here are some of the main benefits:

Cost Savings

Hosted systems are far more cost-effective when you take into account things such as traditional hardware, labor, and even installation. You can also use devices you may own right now, including VoIP headsets, mobile phones, desk phones, and more. Your devices can be converted to a hosted phone system, so you get all of the benefits of the Cloud without having to reinvest in hardware. 


It is estimated that by the year 2026, 40 million people in the US will work remotely. This has been spurred on by the pandemic. A hosted phone system is a great way to boost productivity and keep your team accountable. If you are using a virtual hosted system, you don’t need to be in the office to accept calls. Whether you’re calling from your home, a local café, or even an airport, your customers will only see your business number and have access to your business voicemail.

Easy Installation

Hosted systems are not susceptible to the usual setup problems you may experience with a traditional phone system. You won’t have to worry about complex equipment, tangled wires, or anything else of the sort.


You should always try and keep scalability in mind whenever the time comes for you to decide on a phone system. Hosted phone systems are highly scalable, which means you can use them to your advantage in many ways. Because information is stored in the Cloud, it frees you from the burden of hardware and software management. 

Must-Have Features with a Hosted System

If you are browsing for the ideal VoIP provider, make sure to first outline what your business’s unique needs are. Knowing your needs and comparing them with each phone system option will help you to make the most out of your phone system now and in the future. Make sure to look for these specific features: 

Auto Attendant

Auto-attendant is ideal as it is a very efficient way of routing your incoming calls. It also allows you to save time for your team and your customers. The Auto Attendant will take care of the initial conversation to get the customer routed to the right person for their needs. This is a feature everyone has experienced, whether you’ve called a customer service line or made a doctor’s appointment. 

Call Recording

Call recording is essential if you want to monitor the general quality of your service and your team. Call recording helps you to improve your customer satisfaction rate because it allows you to record and track the conversations between your employees and customers, ensuring that your employees are being held accountable and your customers are being handled with the best care. 


In today’s world, many people prefer to direct message instead of get on the phone. Additionally, messaging allows your customers to get answers to their problems fast. If they’re inquiring about a service, they don’t have to hassle with calling; instead, they can instantly leave you a message. This removes the stress and anxiety that can come with waiting for a phone call. 

Types of Telephone Systems

Take a look below to see the types of hosted phone systems that are available.


Hosted telephone systems are also known as VoIP systems. Flexibility is the biggest advantage, and there is no on-site hardware required. This means that you can easily issue your team with their mobile phone, or you can connect them to your system. VoIP offers more than phone service. Some VoIP features include call forwarding, caller ID, voicemail, SMS, and video calls. It even offers real-time analytics, automatic call routing, and online faxing. 


PBX is on-premises, and it has been around for decades. This means there are physical phones in the office. A PBX allows you to have more phones than physical phone lines (PTSN) and allows free calls between users. Additionally, it provides features like transfer calls, voicemail, call recording, interactive voice menus (IVRs), and call queues.


Hybrid phone systems are a combination of hosted and on-premises systems. They bridge the gap between cloud-based solutions and on-premises telephone systems. This is a great solution for any business that still benefits from having an on-premises telephone system but is interested in having up-to-date technology systems. 

Common Questions 

Can a Hosted System Save Me Money?

Yes, a hosted system can save you a lot of money, especially in terms of labor and hardware.

Which is the Best Hosted System for Me?

The best one for you will usually depend on your business requirements. Our team would be happy to advise you if you want to find out more.

Is it Cheap to Install a Hosted System?

Yes, installing a hosted system is a very affordable option for businesses.

Get a Hosted Phone System For Your Business. 

Find out how your company can benefit from a hosted phone service and what the best option is for you. At Millennia, we’ll learn about your business and your needs, and then we’ll work to tailor an IT plan that meets those needs. We ensure you have the right tools for the job, so you can transform how you do business. 

Get the expertise you need. Contact our sales team at (616) 249-9599, or send us an email at