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Embracing the Advantages of Hosted VoIP for Small Businesses

Updated: Sep 20, 2023

In today's fast-paced business environment, Voice over Internet Protocol (VoIP) technology has become a game-changer for companies seeking enhanced communication strategies and reaping the associated benefits. Small businesses, in particular, can greatly benefit from adopting a Hosted VoIP phone solution, which offers them access to the full spectrum of features found in enterprise-grade phone systems. Additionally, it provides the agility to support its business as it navigates through the various opportunities and challenges that arise during its lifecycle.

Understanding VoIP Phone Service

VoIP, or Voice over Internet Protocol, is a technology that facilitates voice communications and multimedia sessions via the internet. Unlike traditional phone lines, VoIP employs a set of protocols to deliver IP telephony functions. This innovative technology enables real-time phone calls while offering unparalleled mobility and flexibility, characteristics that are not readily available with traditional landlines.

Advantages of Hosted VoIP for Small Businesses

Let's begin by exploring the financial advantages of opting for a VoIP solution for small businesses, as budget considerations invariably take centre stage in decision-making. When partnering with a Hosted VoIP provider, businesses are relieved of the need to invest in physical phone systems or related on-site programming. Instead, they only need to purchase VoIP phones.

Moreover, small businesses have the flexibility to acquire the exact number of phones they require at any given moment and can easily add more as their growth dictates. VoIP phone options are not only cost-effective but they also eliminate the need to oversize a phone system to accommodate future growth. The Hosted VoIP phone platform is fully scalable, allowing it to grow or contract in tandem with the company's evolving needs.

Since the VoIP phone system is designed and maintained by the VoIP provider, the responsibility of keeping the system up to date falls on the provider's shoulders. This eliminates concerns about system obsolescence and safeguards the company's long-term investment.

In terms of monthly costs, VoIP phone service often proves to be highly favourable when compared to traditional analog phone service. Businesses are billed per phone, and these charges typically encompass all features, as well as local and long-distance calling.

Unlike traditional phone systems, VoIP operates solely over the internet, with call volume limitations solely dependent on the number of people making and receiving calls. This means no line restrictions that could lead to busy signals or waiting for an available line. The financial benefit lies in the fact that companies do not need to over-provision the number of lines to ensure they can handle call volumes efficiently.


One of the standout advantages of a cloud-based phone system is the exceptional flexibility it offers small businesses. As the business phone system does not rely on physical infrastructure located within the office, companies can deploy phones wherever their employees are situated. This includes residences, satellite offices, and even remote locations.

This flexibility provides businesses with the option to expand without incurring additional costs related to office space. Alternatively, they can hire employees in areas where labour costs are more competitive. For example, if labour costs are high in the company's home market, they can opt to hire service or support employees remotely in more cost-effective regions.

Furthermore, the ability to reach key customer-facing employees, regardless of location, offers a significant customer service advantage. Sales professionals, for instance, can have desk phones at both home and the office, along with softphones on laptops or mobile devices that mirror their desk phone functionality. This increased accessibility enhances their ability to connect with prospects and customers.


Hosted VoIP ensures that small businesses enjoy a comprehensive range of features and benefits that are typically associated with larger organisations. This feature set includes customised call flows with options for time-of-day routing, auto attendants, ring groups, call queues, paging systems, call recording, direct dial numbers, and numerous other phone-related options and features.

It's essential for small businesses to carefully select their VoIP provider, as many larger providers expect businesses to manage their programming and ongoing administration themselves. Opting for a provider who takes the time to understand your specific call requirements and can handle system programming on your behalf results in a better user experience and more satisfactory outcomes.

Small businesses can gain a competitive edge by leveraging the financial advantages, flexible options, and robust feature set of a Hosted VoIP phone system. If your current phone system is falling short of meeting your business needs or enhancing communication with your customers and employees, it may be worthwhile to explore what Hosted VoIP can offer.

Is it time for your business to make the switch to a Hosted VoIP provider capable of delivering the customer service your business deserves? Elevate every customer interaction with Simplyfree’s complete business communication solution! Simplyfree offers Hosted VoIP services to businesses across New Zealand, providing a superior phone system with advanced features tailored to your unique business needs. Enhance your company's communication and engage in more meaningful customer experiences at every touchpoint. If you want to learn more, contact Simplyfree today!

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