Technical terminology has a way of surfacing overnight. There are many technical terms that are quite common, highly used but only vaguely understood. Two great examples of this are the terms, hosted and managed VoIP. These terms are often tossed around on the technical scene and in other industries and though most people know that they reference phone systems, they have no idea what the difference is between the two. Although it is common to not know the basics of what each offers, it is not a good position to be in when trying to decide which best fits your needs or the needs of the company. As businesses develop into profitable enterprises, it is vital to select a VoIP system that fully completes the needs of the business.

The Managed Option

A managed VoIP can be viewed as a system that is preconfigured for the business. This option is set up with a monthly charge for each phone in the company. The system generally offers unlimited minutes with basic features for the phone service. Features such as call forwarding, automated answering and other basics are a part of managed VoIP service. Though this option presents less expensive start-up investment and features a user friendly set-up, future changes to the system are all reliant upon the service, convenience and response of someone else. Businesses that don’t plan on an essential amount of growth could possibly be satisfied with the limited services offered by managed VoIP.

The Hosted Option

The customizable approach for the business phone system is found in the hosted VoIP system. This system is designed around the needs and usage habits of the business and therefore, presents more convenience and control. The ability to add additional lines during an increase in business is there as well as the option to decrease usage without penalty when things are slower or resources are limited. Hosted VoIP is attractive to most businesses because it allows them the desired flexibility in a phone system and most importantly, lower initial costs for the business as well. Every company has a plan for their business to grow and this generally means an increase in consumer or client call volumes. Hosted VoIP presents the option to handle this increase at a cost that is affordable and reasonable for the company. Business communication is essential for growth and any business that plans to expand must plan for high levels of communication with their clients or customers.