Traditionally business install phone systems in their offices. Hosted phone systems reside in secure data centers and typically vendors manages them. Business access their hosted phone service through their internet connection.
Low cost of ownership. Doesn’t require initial investment of tens of thousands of dollars. You are not getting stuck with obsolete phone system.
Tremendous Savings on phone calls since local analog phone lines are not needed, call are relayed over internet.
Features and functionality of a large phone system at a fraction of the cost
Hosted Phone systems are scalable, they are not restricted by number of local phone lines.