Hosted Services – Is 97% a Passing Grade?

September 14, 2016 by Bill Wyatt

When 97% is Not a Passing Grade

I have noticed an interesting trend over the last year. I have been installing phone systems for 26 years. I do not ever remember removing a new phone system for any reason other than financial. Over the past year we have replaced 5 phone systems that are less than a year old. The reason was the same for all, a lack of reliability.

Question: What did they all have in common?
Answer: They were Hosted.

Now before we get too far into this, understand that Wyatt Communications is a representative for Freedom IQ which is a Hosted solution. I am not questioning the validity of the product, just how it is being sold and applied.

How Hosted Works

With hosted phone service you normally have a device on your desk that looks like a phone, works like a phone, but it is not a phone. It is an internet appliance or SIP phone. Your SIP phone plugs into your computer network, goes out over the internet, and connects to a remote or hosted phone system.

Advantages to a Hosted Phone System

  • Feature Packages are very robust and affordable.
  • Capital investment is minimal since you purchase the phones and rent space on the hosted platform.
  • Great for companies that have remote offices or people on the move.
  • Usually have a great web based control panel.


  • Phones are not as user friendly.
  • Increases load on the local area network.
  • Depend on the internet to work properly.

The LAN Network: Your computer network probably works great for your computers, but voice over the network is different. It is real time, meaning it happens now.

The network needs to have switches and routers that support quality of service or QoS. This means they must be able to give voice packets on the network priority over data packets.

The Internet: Has the same QoS issues as the network, but you share the internet with whom? “The WORLD”

Larger users of hosted services may be able to purchase dedicated bandwidth, but most small to medium businesses will not.

If you have ever watched a video on the internet you know sometimes it freezes or turns into a bunch of small squares then will start working again. On a voice conversation on the internet this would sound like a bad cell phone connection or a dropped call.

What We Can and Cannot Do: Your hosted phone solution is only going to be as good as your local network and your internet connection. We can provide a stable network, but no one can guarantee your internet connection will always be stable enough. There are just too many factors that cannot be controlled.

Hosted is a new technology and is getting better.

Understanding is the Key: If it were a perfect world Hosted Phone Systems would never fail. No phone system is perfect. Telecommunications is one of the oldest technologies and for over 100 years it has set a standard that is 99.999 percent reliable.

In Closing

With advances in technology comes greater features, but there is a price to be paid. Look at all we do with cell phones today. We use them for so much more than talking. Sometimes the calls drop or the internet may not be available, but we rely on them and accept their shortcomings. In the same way Hosted Phone Systems have much to offer, but we must understand it is not a phone it is an internet appliance and is not going to perform 99.999% of the time. If you cannot live with 97% serviceability then purchase an in-house system.

Our focus here was hosted phone service, but really any hosted or cloud based product will have these issues. They can be minimized and we can help.

Wyatt Communications represents Traditional, VoIP, and Hosted Systems. We have the right technology for you.