A:  Hosted VoIP/Hosted PBX service provides advanced telephone system features as a service over the Internet.  Many advanced features are uneconomical to include as part of a traditional telephone system.  Hosted service providers host the costly central equipment of the telephone system on their premise and use the same equipment for many of their customers. By hosting equipment, advanced features are delivered for a fraction of the normal cost.  Businesses no longer need to invest in the expensive central equipment of a telephone system.  In most cases, only phones will need to be purchased or leased.

Q:  What are the advantages of Hosted VoIP/Hosted PBX service?

A:  Hosted VoIP/Hosted PBX services offer many financial, operational and service advantages.  Financial advantages include lower capital expense, monthly payments are expensed instead of depreciated (phone system lease), more predictable and lower monthly recurring bills, easier and less expensive to expand, reduced maintenance and repair costs and scaled down office space from sending employees to work from home.

Beyond financial advantages, operational advantages boast improved call capacity, sending and receiving multiple faxes at a time, effortlessly distributing faxes, Automatic Call Distribution (ACD) for handling calls, easy telecommuter set-up and private and departmental telephone numbers.  Service advantages add quicker service response and diagnostics, 24 hour a day monitoring, easy disaster recovery and Mobile PBX.

Q:  Why is it so inexpensive?  What’s the catch?

A:  With many quality Hosted PBX/Hosted VoIP providers, there is no catch.  Delivering telephony services within the hosted model is simply more efficient and affordable than purchasing telephone system hardware and paying monthly for telephone lines.  Be wary of hosted plans that charge per minute for local and domestic long distance calls.  These plans can charge unpredictable, exorbitant usage charges on their monthly bills.

Q:  What are the common problems?

A:  The most common problem of Hosted VoIP users is their Internet connection.  The Internet connection must be large enough to handle the highest number of simultaneous calls and must be stable.  Read my article “Will Your Internet Connection Destroy Your VoIP Service” for more information.

Another common problem is occasional long delays in porting numbers.  If the porting paperwork is filled out incorrectly, delays can result.  In most cases, your old carrier and not your new Hosted VoIP provider cause the delays.  There are workarounds to porting delays such as call forwarding.  Your service provider should be able to help you.

One final common problem is loss of common features.  Although Hosted PBX services offer many new powerful features, some services lack common features that are taken for granted with smaller phone systems.  Busy Lamp Field (BLF), paging and off hook voice announce are examples of a few features that may not be offered by certain Hosted VoIP providers.  Before you select your provider, survey for the most common features used and make sure your provider delivers those capabilities.

Q:  What kind of Internet do I need?

A:  Your Internet connection can be DSL, cable modem, fixed broadband or wireless.  The type of Internet is less important than the size and stability of the circuit.  Click the link Four Steps to Determine Whether Your Internet Connection is Ready for VoIP.

Q:  If my Internet is down, are my phones down?

A:  If your Internet is down, all the phones behind that Internet connection will be down as well.  But it does not mean that you cannot receive your phone calls.  Your Hosted VoIP automated attendants and voicemails will still be functioning.  Some Hosted PBX services can automatically re-route calls in the event of an Internet failure to your other phones that may be using a different Internet connection or to other 10 digit telephone numbers such a cell phones.  Some advanced VoIP providers can shift calls to back-up or secondary Internet connections as well.

Q:  How easy is it to relocate the service?

A:  For most Hosted VoIP providers, moving the service may be as easy as plugging the phones into the LAN at a new location.  If the service provider has installed any routing equipment, then that may require some additional programming.  Regardless, when compared to moving a traditional telephone system, Hosted VoIP services are extremely easy to move and much less costly.

Q:  Can I take my phone home with me or on the road?

A:  If the Hosted VoIP service works over the Internet and does not require a VPN connection, then the answer is usually ‘Yes.’

Q:  What will the voice quality be like?

A:  Excellent assuming the following:

1.  The Internet bandwidth is sufficient to support the maximum number of simultaneous calls required.  You can check for this by reading “Four Steps to Determine Whether Your Internet Connection is Ready for VoIP” linked above.

2.  Voice packets are correctly prioritized going out to the Internet.  (Your provider may have to manage voice prioritization for you.)

3.  The Internet connection is stable.

With literally a thousand or more providers in the industry, selecting a Hosted VoIP provider can be a confusing and frustrating process.  This article is a detailed plan and structured process to selecting the right provider for your business.  You should follow the 6 steps and familiarize yourself with all of the linked articles that apply for your business.  Doing so increases the chances of selecting the ideal vendor so that you can enjoy the powerful benefits that Hosted PBX services have to offer.

1.  Determine Your Needs and Pick Providers That Solve These Needs

The first and most important step is to understand your company’s needs.  Your needs are the focal point of all questions and decisions throughout the process.  If you have some specific requirements that have brought you to this stage, now is the time to write them down.  In addition, here are some additional areas that should be considered:

a.  Does the company have multiple locations including employees working at home?  Combining multiple office locations and telecommuters into a seamless communications system can improve efficiency and customer service while saving the company thousands of dollars in overhead.  Read my article “How to Stop the Waste When Operating a Business in Multiple Locations” for more information.

b.  Where are the most costly places to call?  What areas get called most often?  Take this information into account when selecting a service and calling plan.

c.  Do any departments such as inside sales or customer service frequently have callers waiting on hold while other callers are assisted?  If the answer is “Yes,” then you may need Automatic Call Distribution.  Read “Pissed Off Callers Cost You Revenue:  Fix It with Automatic Call Distribution” for more information.

d.  Do any staff members roam the building who need to take calls?  One or more cordless phones can help these workers.

e.  Do any employees travel out of the office including sales people, managers and service personnel?  Mobile PBX may be the answer to handling their calls.

f.  Are there paging requirements either through the desk phone or external speakers?

g.  Do any staff members share a phone with a need for individual Direct Inward Dial (DID) numbers?

All of these needs that are applicable should be written down along with any others that you listed.  Not all Hosted VoIP providers can deliver solutions to solve these issues.  Make sure you use them to find the most qualified services for your situation.

2.  Know the Quantities of Phones, Other Hardware and Services That Your Business Requires

In order to get an accurate quote and make sure there are no surprises on future invoices, survey your business and determine accurate quantities of:

a.  Desk Phones

b.  Fax machines that will connect through provider’s network and Virtual Private Inbound Fax Numbers

c.  Analog ports for cordless phones or other analog devices

d.  Virtual Published Numbers and Unpublished Numbers

e.  Automated Attendant Greetings (day-time & night-time)

f.  Voicemail boxes in addition to those associated with phones

As a side note, VoIP telephones plug into your LAN outlets.  Check for an available LAN connection at each phone location.  If LAN outlets will be shared with other devices such as computers, choose a VoIP phone that has an integrated Ethernet switch.  If no LAN outlet exists in one or more phone location, new cabling will need to be run.

3.  Understand Available Calling Plans

Calling plans for Hosted VoIP services can be confusing.  Unfortunately, sometimes that is intentional.  In order to avoid some nasty surprises on your bill and to make the most informed decision, it is necessary to understand the available calling plan and how the charges will affect you.

You should avoid services that charge by the minute for local and domestic long distance calls that are not on their network.  Although the cheap prices that these services offer may be very attractive, their bills can be impossible to predict and shocking.  The simplest calling plans are always the best.  Select a service that offers unlimited local and domestic long distance calling to any telephone number.

In determining the right calling plan, know what the calling areas include and compare to the information you gathered in step one.  If you are evaluating a variable pay per minute plan, 750 minutes can be used as the average business desk phones use per month for local and domestic long distance calls.

4.  Compare Potential Vendors’ Pricing Plan Using the Same Quantities of Hardware, Services and Minutes for Each

Although this may seem like an obvious step, it is rarely done correctly.  Comparing potential vendors using quantities that are the same for each proposal can be challenging.  Do not consider a proposal that does not match up with the others.  Modify each vendor’s proposal until they all are equivalent.  Get the proposal with correct quantities in written form.  Do not accept verbal information.  Once the proposals match, they can be accurately compared.

5.  Avoid the Top Mistakes Made When Selecting a Hosted VoIP Provider

At this point, probably one or two potential Hosted VoIP providers are standing out among all the rest.  Now it is time to read my article, “The Top Mistakes Made When Selecting a Hosted VoIP Provider.”  Read the article and avoid these mistakes.

6.  Select a Hosted PBX or Hosted VoIP Provider

The homework has been done and the chances of success are very high.  Confidently select the service that meets your needs the best.  Soon you will be enjoying the many powerful benefits that Hosted PBX services have to offer.

Following is a partial list of issues from having a work force under more than one roof:

1.  Calls can not be transferred between locations.  Asking an outside caller to hang up and dial another number within an organization includes the risk that they will not call.

2.  Many companies have redundant positions at each of their locations because they cannot easily transfer calls.  Redundant positions may include call answering points, sales, customer service and accounting.

3.  Communication among employees is strenuous as it is harder to get someone on the phone than it is to see them in the hallway or catch them at their desk.

4.  Departments that are geographically spread apart cannot be grouped together for answering calls and incoming calls cannot be fairly distributed between locations.

5.  Call answering positions do not know whether or not someone is already on the phone.

6.  Key personnel who travel between offices frequently miss their important phone calls when they are away from their main desk.

7.  Employees cannot page people in other locations.

Hosted PBX or Hosted VoIP services are the solution to all of these issues and more.  Here are the ways they can help:

1.  Calls can be transferred between locations as easily as they are transferred within the same building.  Now callers can always get to the right person by calling the company only once.

2.  Some premium Hosted VoIP providers offer Busy Lamp Field (BLF) which show who is busy on other phone calls.

3.  Call answering points can be centralized into one location since calls can be transferred anywhere and BLF features show who is on the phone.  Other redundant positions such as sales or customer service can be centralized, eliminated or reduced.

4.  Mobile PBX option integrates the desk phone with the mobile phone.  Employees can receive and process calls whether they are sitting at their desk or away from the office.

5.  Camp On feature provides an alert when an extension becomes idle or is used again.  Hosted PBX users do not need to hunt for each other as the phones will do it for them with Mobile PBX or Camp On.

6.  Automatic Call Distribution (ACD) is furnished by some Hosted VoIP providers.  ACD evenly distributes calls among several people within a department.  It also stacks calls that are waiting to be answered similar to the teller line at a bank.  People in comparable departments such as customer service that are spread apart in multiple locations can be included in the same ACD group and answer any of the department’s calls.

7.  Hoteling allows a user to go to any desk phone, enter a code and that desk phone is now their main extension.  Hoteling is beneficial for employees that travel between office locations and need to receive their calls no matter where they are.  Since their extension is the same, call receptionists never need to hunt for them.

8.  Overhead paging systems can be accessed in other locations.  In some instances, multiple paging systems in multiple buildings can be used simultaneously.

Whether a business has single user multiple locations or stand alone satellite offices, Hosted VoIP services and Virtual PBXs solve many communication challenges.  Separate phone systems will cause disjointed communication and the sales and customer service experience of the outside caller will suffer.  Hosted VoIP providers deliver one cohesive telephone system for all locations.  Businesses can save money by centralizing, streamlining or eliminating redundant positions while simultaneously improving the caller’s experience.  In addition, advanced features such as ACD, Mobile PBX, Hoteling and Camp On will significantly improve the service a company delivers to its callers.

When customers do not get the help they need in a timely manner, they turn into revenue and morale killers.  The customers may hang up.  When they do, they may not call back or, worse, they may call a competitor.  Multiple ringbacks to the receptionist not only consumes the receptionist’s time and frustrates the caller, but it also communicates an unprofessional disorganized image of your company.  And we all have experienced what happens when a call gets left on hold too long.  The caller gets angry and then abuses the unlucky employee who finally tries to help them.

Automatic Call Distribution (ACD) can readily solve these issues.  ACD is available in many phone systems and the higher quality Hosted PBX services from Hosted VoIP providers.  ACD has two components: call handling and reporting.  Both can get very complex.  Businesses with small customer service and sales departments can solve most of their problems with the call handling capabilities of ACD alone in their Hosted PBX service.

The employees who answer calls from an ACD are commonly referred to as ACD agents.  Call handling in ACD distributes calls to the agents in a round robin or longest available format.  When all agents are busy assisting other callers, ACD stacks up waiting calls similar to the teller line at a bank.  ACD will use delays, music on hold, comfort messages and overflow destinations to manage the call until it can be serviced.

With ACD, calls are handled more efficiently and effectively.  When the caller is placed in queue (hold), they are comforted in knowing that they are waiting in a structured line.  Some ACDs will provide real time information on the calls waiting in queue to supervisors and agents which allows for adjustments to be made in length of calls or number of agents handling calls.  ACD in Hosted VoIP systems can include agents working out of their home or remote offices.  No matter what, ACD will significantly reduce abandon calls and customer frustration.  Both translate into improved revenue generation and protection.

If you ever have callers left on hold waiting to be assisted, talk to your telephone provider, Hosted PBX service or Hosted VoIP provider about how ACD can help.

If you have used ACD, I would appreciate you sharing your experience below.

Here are 6 ways Hosted PBX services can get your company lean and mean:

1.  Hosted VoIP systems can provide you virtual office support just about anywhere, making it possible to downsize or eliminate commercial office space and the high rent, utility bills, insurance and much more.  Your employees’ home office space can be networked together with other work locations.  The seamless operation produces a united work environment without the cost of brick and mortar.

2.  Now that your employees can work from their home in a seamless environment thru your Hosted PBX service, you can eliminate or combine remote facilities while maintaining existing phone numbers that keep you connected to your customers and staff.

3.  With Hosted VoIP, geographical distances have no impact on effective communication and call handling.  Once dedicated to the support of a local office, redundant functions in your multiple facilities can be consolidated into a single entity supporting all offices.  Redundant functions may include phone reception, customer service, inside sales personnel and office/facility management.

4.  Hosted VoIP providers can supply you with published local phone numbers that ring anywhere.  This allows you to expand or test market areas without adding commercial office rent and staff.  The new market area becomes a seamless addition to your core business.

5.  Top Hosted PBX services offer Automatic Call Distribution (ACD).  ACD stacks up calls similar to the line for bank tellers.  If you have callers that wait on hold while other callers are being assisted, you are abusing them by long hold times, multiple operator ring backs and handling by less knowledgeable staff.  ACD will stop the abuse, keep your callers from alternative solutions and increase sales, customer service and customer satisfaction.

6.  Hosted VoIP providers allow virtually unlimited simultaneous calls to flow to your business.  Some Hosted PBX services will do the same for faxes as well.  Busy lines and fax machines will no longer turn valuable business away from your company.

Hosted VoIP services give your business the flexibility to reorganize and cut big costs in addition to savings on traditional telephone bills.  At the same time, they can help your business retain and grow new sources of revenue.  After you have weathered the economic storm, Hosted PBX services will help your business be more accessible, responsive, adaptable and competitively positioned.

I hope this article has been helpful to you.  Please let me know your thoughts in the comments section below.