For small businesses and startups, there is a lot to be said for saving space and resources. It might seem preferable to work on a phone system that is managed entirely within your office, but sometimes the desire for this control is significantly outweighed by practicality. Although an internally maintained system can offer a number of advantages, it is important to bear in mind the benefits offered by the alternative.

A VoIP phone service offers a range of features and benefits, and as any small business or startup owner knows, every advantage is a tool that can be used to thrive.

But first, what is hosted VoIP? Put simply, it is a telephone system that is managed from an external space; a VoIP provider “hosts” your equipment in the cloud, and you pay a monthly charge for the service. Although this is a simplification of the process, it is essentially enough for business owners to understand what they are signing up for.

So what are the benefits of hosted VoIP?  And why should your business think about joining the cloud? Take a look at the information below to find out.

1) Space. This is the simplest benefit of hosted VoIP, but it is easily one of the most important. With the majority of equipment located elsewhere, your business does not have to dedicate any space to it—likewise, with the system being operated remotely from your business, you do not have to invest in installation or clunky hardware. This can save you time and money, and can be a huge relief for a small business or a startup that can’t easily afford to spend out on equipment or installation costs.

2) Maintenance. As well as removing the stresses that come with storage and space, having your system hosted elsewhere also removes the hassle of maintaining it. Although there are various features and systems that you will still manage with an internal dashboard or management system, you do not need to take care of physical equipment. This reduces the resources required and, as an added bonus, also provides you with cover. With a hosted VoIP system, maintenance responsibility lies with your supplier—you can expect constant, quality service, maintained by experts.

3) Quality. Some business owners may worry that a hosted system sacrifices quality. In fact, this is not the case at all. Although you may lose direct control of your equipment, you can still expect to receive the highest quality service through your cloud-hosted service. Indeed, the features offered with hosted VoIP are comparable to non-hosted service in almost every way, meaning that your business can feel more than confident in the functionality you work with.

4) Cost. VoIP is a cost-effective option for any business—and for small businesses and startups, that cost-effectiveness is vital. Just like larger, more established companies, small businesses need to get the best service possible. Unlike larger, more established companies, though, they do not always have the capital to shell out for what they need. This is why hosted VoIP is beneficial. It allows small businesses to compete with larger rivals, without fighting uphill against inferior equipment.

A cost-effective hosted VoIP telephone system levels the playing field and can help your business to overcome the obstacles that might otherwise stop you in your tracks.

Although there is a range of options to choose from, for a small business, hosted VoIP might well be the best bet.