Zoom Phone vs Hosted VoIP: A Practical Comparison for Small Businesses

Choosing the right phone system is essential for small businesses.

Two top contenders for your business phone system—Zoom Phone and Hosted VoIP solutions like our ITS UC Enhanced platform—appear similar on the surface but serve very different business needs. This guide focuses on their offerings and limitations.

Key Differences at a Glance

Feature	Zoom Phone	Hosted VoIP
Multi-Line Support	Single-user focus; limited line visibility	Full multi-line support
Device Compatibility	Zoom-certified devices or app only	SIP Phones, Analog Adapters, Paging Hardware Supported
Third-Party Integration	Limited – via Zoom App Marketplace connectors	Built-in CRM and app integrations
Call Center and Analytics	Basic queues; advanced features require add-ons	Advanced routing, reporting and analytics included
Emergency Routing	Requires internet, no automatic failover	Built-in failover options and location-based 911 routing
Support & Management	Zoom support or internal IT admins	Telecom-specific provider support (often 24/7)

When Zoom Phone Might be the Right Fit

Choose Zoom Phone if:

• You already rely heavily on Zoom for meetings.

• You need simple calling integrated with your existing Zoom platform.

• You don’t need advanced call handling or specialized hardware.

When Hosted VoIP Might be the Right Fit

Choose Hosted VoIP if:

• Your team manages multiple lines or shared extensions.

• You depend on third-party CRMs or apps.

• You want advanced routing, analytics, and flexible device choices.

• You need reliable failover and dedicated telecom support.

What Do These Systems Offer?

Both Zoom Phone and Hosted VoIP solutions use VoIP (Voice over Internet Protocol) technology to provide business phone service over the internet. They support core calling features such as voicemail, auto attendants, and call forwarding. However, their platforms are built with different goals in mind:

• Zoom Phone (Zoom’s cloud phone service) is an add-on to Zoom’s collaboration suite. It works best for Zoom-heavy teams with simple phone needs.

• Hosted VoIP is a full-featured phone system built for business calling, offering more flexibility, integrations, and device support.

While both platforms cover the calling basics, a hosted VoIP solution delivers a more versatile, scalable voice experience.

Limitations of Zoom Phone (vs. Hosted VoIP)

1. Single-Line Limitations for Shared Roles

   Zoom lacks true multi-line visibility. Receptionists and assistants can’t easily manage multiple calls on one device—a task seamless with Hosted VoIP.

   
   

2. Hardware Restrictions

   Zoom only supports its app and certified devices. Businesses with existing SIP phones, fax machines, or paging systems often face added costs for compatible hardware, while Hosted VoIP supports these natively.

   
   

3. Limited Integrations

   Zoom works best within Zoom apps. External CRMs often require add-ons, making integration less smooth than Hosted VoIP’s built-in connectors.

   
   

4. Basic Call Center Tools

   Standard features like queues and voicemail are included, but advanced tools (IVR, skill-based routing, real-time analytics, coaching) require extra services. Hosted VoIP usually includes these out of the box.

   
   

5. No Automatic Failover

   If internet or Zoom goes down, calls stop unless users manually switch to mobile apps. Hosted VoIP can auto-reroute to backup numbers, keeping lines open.

   
   

6. Licensing Limits

   Zoom Phone requires additional calling plans or carrier setup to dial external numbers. Hosted VoIP typically includes PSTN calling by default.

Limitations of Hosted VoIP (vs Zoom Phone)

• No Built-In Video Meetings or Chat: It’s focused on voice. Teams would need separate tools or pay additional fees for video meetings and messaging.

• Separate from Collaboration Apps: Unlike Zoom’s all-in-one suite, VoIP systems run independently. This adds a small convenience trade-off but ensures a system specialized for telephony.

Despite these points, hosted VoIP remains a highly adaptable, feature-rich choice for most business telephony needs. It offers a level of flexibility and depth in calling capabilities that an add-on voice service often cannot match.

Ready to Get Started with the Right Choice for you?

Zoom Phone is convenient for Zoom-centric teams with simple calling needs. But for

multi-user environments needing advanced features, integration, and reliability, Hosted

VoIP provides greater flexibility and scalability.

Not sure which option is best? We can help assess your needs today—and as you

grow. Contact ITS to get started.