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VoIP has done for voice communications what computer networking did for data--increase productivity and mobilize workers. Digital voice technology gives business users anytime, anywhere access to the company's communications network. And with the advent of hosted VoIP PBX services, companies no longer need to invest in costly equipment to realize the advantages of Internet-based telephony.

Hosted VoIP PBX

A private branch exchange is a switchboard managed directly by the user. Traditionally, PBX systems allowed companies to configure their phone network in-house, routing calls and managing extensions as needed. Since the technology required a huge upfront investment, PBX was the province of large enterprise. Voice over Internet Protocol leveled the playing field, bringing the same functionality online through IP PBX software.

Hosted services further reduce entry costs by making VoIP PBX technology available by monthly subscription. As a result, businesses of all sizes have access to state-of-the-art communications features on an as-needed basis. Benefits include:

• "Pay as you go" pricing
• Minimal equipment investment
• Reduced IT maintenance costs
• Access to the most advanced technology
• Scalability and on-demand service

Hosted VoIP services introduce the ultimate flexibility into business telephony. Businesses with no more infrastructure than a standard computer network can select state-of-the-art features from an "a la carte" menu and scale their system to their changing needs. Advanced functions available by subscription include:

• Automatic Call Distribution (ACD)
• Data Integration
• Intelligent Call Routing
• One-Click Dialing
• Remote Access

Navigating the Hosted VoIP Market

Hosted VoIP currently commands about a third of the VoIP market. 2010 projections by the Yankee Group price the worldwide VoIP market at $3.3 billion, with $1.2 billion going to hosted service, the fastest-growing IP telephony segment.

The explosive growth of on-demand hosted VoIP service has produced a wide array of service options. Criteria for choosing the right Hosted VoIP PBX service include:

• Voice Quality
• Service Reliability
• Customization Services
• Group Services
• Scalability
• Pricing

In establishing a relationship with a VoIP provider, businesses take into account price structure, service level agreements, and customer service. Most hosted VoIP service providers work with businesses to develop a comprehensive communications solution. Under this business model, the provider partners with a client to develop an integrated system customized to specific business needs. The VoIP PBX is hosted off-premises, but it works as an extension of the company's existing data infrastructure. A good service provider permits adjustments throughout the life of the contract. Scalability and flexibility, after all, are hallmarks of the hosted VoIP industry.

For an increasing number of businesses, hosted VoIP is the cornerstone of a competitive communications strategy. The right VoIP service partnership empowers businesses of all sizes to take full advantage of next-generation networking technology. With the industry growing roughly 57 percent annually, the hosted VoIP market is sufficiently diverse to accommodate a full spectrum of business communication needs. Today's hosted VoIP PBX services are prepared to offer clients more than a technology subscription--the best providers promise a comprehensive communications solution.

About the Author: Dr. Clare Kaufman is a freelance writer who covers business and education topics.