A Hosted Phone System in Florida is a term used to describe a voice over IP telephone system that resides in the cloud. There is no equipment on site that facilitates the VoIP service other than the telephone instrument itself. In most cases the hosted telephone service is provided by a multi-tenant server stack that is in a data center. These servers consist of a primary and secondary server for backup and in some cases georedundant locations that replicate so even if there is a natural disaster or prolonged power outage your service will be up. More on this later.