A hosted phone system works entirely on a digital platform, where everything gets managed in the cloud. The main advantage of using the cloud is that adding more phone lines or features is very simple. Even more, your costs will stay relatively flat, regardless of the number of users you have.
In general, hosted phone systems are better for businesses that don’t have any existing system in place. All the hardware of a hosted system is managed remotely, meaning lower up-front infrastructure costs. If anything goes wrong, the phone system team is on it without your intervention.
Many hosted phone system providers also offer a DIY menu to their customers. If you want to manage your features and lines yourself but want the other benefits of a hosted system, you may appreciate this option. Best of all, when you decide you don’t want to handle the small details, the host will be ready to take over at a second’s notice.
Since individual phone cables are not needed, hosted solutions allow you to request an additional line very easily. You simply call support, pay for an additional licence, and get a new handset.