Voice over Internet protocol (VoIP) can offer reduced telephony costs and add advanced calling features. While VoIP is accessible for practically every business setting, the upfront cost of a traditional VoIP solution can be out of reach of many small businesses due to the cost of equipment, personnel and maintenance. Therefore, a hosted VoIP solution often makes sense for budget-minded small and midsized businesses (SMBs).

Hosted VoIP offers a network-based alternative to buying, managing, maintaining and upgrading an IP PBX, while providing advanced communications features, with the added benefit of pay-as-you-go operating expenses. Hosted solutions are not hardware-intensive, nor dependent on a full-time, on-site technical administrator. A hosted VoIP solution allows SMBs to take advantage of the advanced capabilities of VoIP and the convenience of pay-as-you-go service, while eliminating high up-front costs and ongoing maintenance.

Hosted VoIP can provide SMBs with the same services offered to large enterprise customers, allowing the SMB to experience increased mobility and productivity with enterprise-class features, such as presence awareness, unified messaging and mobile connectivity.

Business-class VoIP features, such as extension-to-extension dialing regardless of employees' location, are of value to SMBs with several locations or employees working from home. Call forwarding allows incoming calls to go directly to a cell phone or another phone. Hold music or hold messages are also available.

Voice mail messages can be retrieved via e-mail. There are also options for voice-activated speed dialing. Some service providers offer a message blast feature to send a prerecorded message. A Web-based portal allows the administrator to log into and manage services or review detailed call reports.

Hosted VoIP can provide SMBs with enterprise-grade voice quality without a large up-front or long-term investment. The advanced calling features can help small businesses improve productivity, customer responsiveness and ultimately their bottom line. SMBs can upgrade with additional lines and features, such as unified messaging and conferencing.

Service providers can help SMBs assess their network connections, test to see how many lines the company can support and list the steps necessary to implement an effective VoIP solution. Once the network is ready, the SMB only needs to purchase the desired end devices, such as IP phones or softphones. The solution provider provides the technology, services and customer support, allowing small businesses to take advantage of leading-edge technology, while the hosted solutions provider handles the equipment and maintenance.

SMBs should look for a reputable hosted VoIP provider, as the range of VoIP providers and services varies widely, and the transition from traditional telephony to VoIP requires some professional support from the hosted provider.

Russ Warner is vice president of sales for Alianza, Linden, Utah.

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