Countless businesses worldwide are moving to Cloud-based hosted phone systems in 2025, and those that don’t are quickly being left behind.
Hosted telecom solutions are now the go-to option for companies of all sizes. However, many misconceptions persist on the Web regarding the cost, effectiveness, and reliability of these systems for business operations.
I’ve reached out to the hosted phone systems englewood oh experts at Garber Electric to ask them about these common misconceptions, and we’re now ready to set the record straight right here.
So, check out the sections below to see how I am debunking 8 common myths about hosted phone systems by providing the truth behind the online lies!
Let’s start!
8 Common Misconceptions About Hosted Phone Systems
Misconception #1: Hosted Phone Systems Are Only Useful For Large Corporations
The truth is that hosted phone systems used to be primarily designed for large corporations and business organizations, but these days are long gone.
Today in 2025, Cloud-based hosted telecom solutions are easily scalable for businesses of all sizes. This type of flexibility is essential for growing remote teams, small local businesses, and multi-location companies that require customized, affordable features.
This means that small and mid-sized businesses are now receiving corporate-level phone system accessibility, without corporate-level costs.
Misconception #2: Hosted Phone Systems Are Pricey To Install
This myth couldn’t be further from the truth, because today’s hosted phone systems offer businesses low-upfront installation costs, especially in comparison to conventional on-premises PBX phone systems.
These lower installation costs are due to the lack of bulky servers, equipment and dedicated IT specialists—and business leaders love how they can receive this cutting-edge technology within a pay-as-you-go subscription model.
Businesses are now utilizing personal computers, desk phones and mobile devices within Cloud-based phone systems, which goes even further to reduce installation expenses.
Misconception #3: Hosted Phone Systems Provide Unreliable Call Quality
Although there were indeed legitimate concerns about call quality while the first VoIP phone technology models were rolled out around 15 years ago, these concerns have largely been addressed in today’s industry.
In 2025, businesses that invest in hosted phone systems receive advanced codecs, high-speed internet, and Quality of Service configurations that essentially guarantee reliable, crystal-clear calls.
As long as a company can maintain a good Web connection, they’ll receive far better call quality in comparison to traditional landlines.
Misconception #4: Hosted Phone Systems Are Tough For Businesses To Maintain
Today’s hosted phone systems are actually more intuitive and user-friendly than ever before. Administrators are now capable of efficiently managing call routing, settings, voicemail, and other vital integrations all through a Cloud-based dashboard.
This means that no professional IT skills are required to maintain these phone systems. Most of today’s systems allow employees to utilize their own smartphones for seamless business calling.
And when security patches and automatic updates are needed, providers automatically give these services as a part of a subscription. This significantly reduces a company’s overall need for internal IT staff.
Misconception #5: You’ll Lose Control Over Your Company’s Phone System
Quite the opposite is the actual truth, because hosted phone solutions provide businesses with greater flexibility and control in comparison to conventional setups.
You’ll be able to quickly add or remove users, adjust call flows, set business hours, enable telecom features, and much more all within an easy-to-use, Web-based management portal.
This essentially means that your team will be given more control and customization capabilities with a hosted phone system!
Misconception #6: Advanced Business Features Aren’t Supported By Hosted Phone Systems
Another major misconception regarding hosted phone systems is that they’re incapable of supporting today’s advanced business features that companies generally need daily.
Although this is far from the truth, there are still plenty of business leaders out there who assume that Cloud-based solutions are stripped-down in comparison to conventional PBX alternatives.
But in reality, Cloud technology is easily customizable and feature-rich. This includes popular telecom features like auto attendants, call recording, video conferencing, voicemail-to-email, CRM integrations, and so much more.
Misconception #7: Businesses With Hosted Phone Systems Are Susceptible To Cybersecurity Breaches
It’s also very common for businesses to hold themselves back from Cloud-based solutions due to security concerns. This particularly applies to potential data leaks and hacking.
Although Web-based services undoubtedly require safeguards, there are many enhanced safety protocols that shield hosted phone systems from cybersecurity threats. This includes multi-layer firewalls, encryption, intrusion detection systems, and routine scanning to stay ahead of the latest hacking strategies.
Misconception #8: Switching To A Hosted Phone System Requires Extensive Hardware Replacements
Another common objection among small business owners is the misconception that transitioning to a hosted phone system will necessitate the purchase of new headsets, desk phones, and telecom network equipment.
The good news is that this is another bold-faced lie. Modern hosted systems are specifically designed to provide businesses of all sizes with maximum compatibility and flexibility.
The vast majority of SIP devices, VoIP desk phones and smartphones can be easily integrated into new hosted phone solutions. This means that businesses can use their current hardware as they gradually make other equipment upgrades that better accommodate their new communication strategies.
So, even though you may still need to replace some of your hardware as you get used to your new phone system, your team by no means needs to replace their equipment right at the beginning of these transitions.
Summing Up
Modern businesses now need hosted phone systems to evolve their overall cost-effectiveness and reliability with customers. But the tough truth is that too many companies are currently holding themselves back due to these common misconceptions.
It’s generally easy to see why businesses are making the switch from landlines to hosted communication platforms. Now may be the perfect time for your team to explore these modern options if you’re ready to discover how a new hosted phone system can enhance your operations.
