What is hosted telephony and how does it work?

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Hosted Telephony

In the fast-paced world of modern communication, businesses are continually seeking more efficient and cost-effective ways to manage their phone systems. One solution that has gained significant traction is hosted telephony. In this article, we’ll delve into the intricacies of cloud hosted telephony, exploring its definition, functionality, benefits, and key considerations for businesses looking to adopt this innovative communication technology.

Introduction to Hosted Telephony

Hosted telephony, also known as cloud telephony or VoIP (Voice over Internet Protocol), is a communication solution where the phone system is hosted in the cloud rather than in your office. Unlike traditional phone systems that rely on on-premise hardware and lines, hosted telephony leverages the power of the internet to facilitate voice communication.

In an era where remote work is becoming the norm, hosted telephony plays a pivotal role in ensuring seamless communication across geographically dispersed teams. Its flexibility and scalability make it an attractive option for businesses of all sizes, and in most cases the installation process is ‘plug and play’ after installation. Your phone system becomes a piece of software and can then be used to receive calls over a desk phone, soft phone or mobile application, making it ideal for customer support departments and call centres.

How Hosted Telephony Works

Cloud-Based Infrastructure

Hosted telephony operates on a cloud-based infrastructure, eliminating the need for physical phone lines and traditional PBX systems. This cloud-centric approach allows businesses to access and manage their phone systems through the internet, promoting accessibility and ease of use. It means as businesses can use headsets, mobiles and even desktop applications to receive and make calls. Hosted telephony uses the same LAN network as the office internet, making it a cost effective way of making and receiving calls.

VoIP Technology

At the core of hosted telephony is VoIP technology, which converts voice signals into digital data packets for transmission over the internet. This technology not only enhances call quality but also enables a wide range of features and functionalities that go beyond traditional phone systems.

Integration with Existing Systems

One of the notable advantages of hosted telephony is its seamless integration with existing business systems. Whether it’s customer relationship management (CRM) software or other collaboration tools, hosted telephony ensures a unified communication experience.

Key Features and benefits of Hosted Telephony


Hosted telephony allows businesses to scale their communication infrastructure effortlessly. Whether expanding or downsizing, businesses can adjust their phone system to accommodate changing needs without the hassle of hardware upgrades. It is fast to roll our with minimal disruption to your business, making it the preferred choice for the SME market. Equally where issues arise, remote fixes can be performed without the need if a physical visit by an engineer.


The cost-effectiveness of hosted telephony is a major draw for businesses. By eliminating the need for extensive hardware and maintenance, businesses can significantly reduce their communication expenses while enjoying advanced features. You can avoid the expense of maintenance and upgrades of your PBX system and not have to worry about maintaining hardware and upgrades. The cost savings associated with hosted telephony are multifaceted so as a business you can redirect financial resources to other critical areas while still maintaining a robust communication system.


Hosted telephony offers unparalleled flexibility. Employees can make and receive calls from anywhere with an internet connection, promoting remote work and ensuring uninterrupted communication. Where operations are spread across multiple locations, the level of flexibility that cloud hosted telephony provides is unparalleled. The system can be used anywhere as long as there is an internet connection present, allowing you the freedom of remote staff or working on the move.

Advanced Features

Beyond basic voice calling, hosted telephony provides a range of advanced features, including voicemail-to-email, auto-attendants, and call analytics. Reporting and call management features can allow you to gain detailed information on performance and real time stats can help you to improve your business processes. These features enhance overall communication efficiency and contribute to a more streamlined business operation.

Improved Communication

Hosted telephony fosters improved communication within and beyond the organisation. With features like video conferencing and instant messaging, teams can collaborate seamlessly, irrespective of their physical locations. The system is more reliable provided that you have an appropriate data connection in place.

Increased Productivity

The enhanced features of hosted telephony contribute to increased productivity. Employees can efficiently manage calls, access voicemails remotely, and leverage other advanced functionalities that streamline communication processes. Systems can be scaled up and down to suit productivity and business needs, making it effortlessly flexible during busy periods where further capacity is required. As a cloud service it is not limited by a singular physical location.

hosted telephony

Considerations Before Implementing Hosted Telephony


Selecting a reliable hosted telephony provider is crucial for a seamless communication experience. Assessing the provider’s track record, customer reviews, and service-level agreements helps businesses make an informed decision.

Bandwidth Requirements

Implementing hosted telephony requires a reliable internet connection with sufficient bandwidth. Assessing and meeting these requirements are crucial to ensuring a smooth communication experience.

Security Concerns

While hosted telephony offers numerous benefits, many business owners worry about the security concerns associated with transmitting voice data over the internet. Choosing reputable providers and implementing security measures are paramount. A good cloud telephony provider should mitigate risks by:

  • Providing monitoring and up to date firewalls.
  • Implementing strong passwords and access credentials.
  • Using advanced encryption protocols.
  • Doing regular audits and updates as part of proactive security.
  • Providing Multi-factor authentication (MFA).

Compatibility with Existing Infrastructure

Before adopting hosted telephony, businesses must ensure compatibility with their existing infrastructure. This includes assessing the integration capabilities with current software and hardware systems.

Support and Maintenance

Ongoing support and maintenance are integral to the success of hosted telephony. Choosing a provider that offers responsive customer support and regular system updates ensures the longevity and reliability of the communication system.

Customisation Options

Businesses have unique communication needs. Opting for a hosted telephony provider that offers customisation options allows organisations to tailor the system to their specific requirements, maximising its effectiveness.

Steps to Implement Hosted Telephony in a Business

Planning and Assessment

Before implementation, thorough planning and assessment are critical. Businesses should evaluate their communication needs, assess infrastructure readiness, and outline a comprehensive plan for a successful hosted telephony deployment.

Choosing the Right Provider

Selecting a suitable hosted telephony provider involves thorough research. Evaluating features, pricing models, and customer reviews assists businesses in choosing a provider that aligns with their specific requirements and budget.

Training and Implementation

Successful implementation requires proper training. Ensuring that employees are familiar with the features and functionalities of hosted telephony promotes a smooth transition and maximises the benefits of the new communication system.


Comparing the advantages of hosted telephony with traditional phone systems underscores the superior flexibility, scalability, and cost-efficiency of the former. Businesses can weigh the benefits and drawbacks to make an informed choice. Recognising the limitations of traditional phone systems, such as high maintenance costs and lack of flexibility, reinforces the need for businesses to explore more modern and adaptable communication solutions.

Hosted telephony stands as a transformative solution for modern communication. From its cloud-based infrastructure to advanced features, businesses can benefit significantly from the flexibility, scalability, and cost-efficiency it offers.

As technology continues to advance, hosted telephony is poised for continued growth. Businesses that embrace this innovative communication solution position themselves for enhanced efficiency and competitiveness in the evolving digital landscape. With BT stating that all ISDN services related to PBX systems will be switched off in 2025, cloud hosted telephony is the best alternative.

At GHM Communications we pride ourselves on our reputation and our family ethos is at the core of everything we do. We strive to be true to our words, matched by our actions. This is why so many companies choose us as their reliable partner for cloud telephony. To chat to us about how we can help you with your cloud telephony needs, you can call us or fill our the contact form below.

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    Frequently Asked Questions

    • Is hosted telephony suitable for small businesses?
      Hosted telephony is highly adaptable and suitable for businesses of all sizes. Its scalability makes it particularly beneficial for small businesses looking to grow.
    • How does hosted telephony enhance remote work?
      Hosted telephony enables employees to make and receive calls from anywhere with an internet connection, facilitating seamless communication in remote work environments.
    • Are security concerns valid with hosted telephony?
      Reputable hosted telephony providers implement robust security measures to protect voice data. Businesses can enhance security further by following best practices and guidelines.
    • What sets hosted telephony apart from traditional phone systems?
      Hosted telephony offers superior flexibility, scalability, and cost-efficiency compared to traditional phone systems, making it a more modern and adaptable choice for businesses.
    • Can businesses customise their hosted telephony systems?
      Yes, businesses can choose providers that offer customisation options to tailor the hosted telephony system to their specific communication needs and requirements.
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