Weighing hosted vs. on-premise VoIP can be daunting for any business owner. Both setups offer various features that can make your company more productive. However, with each setup having its merits, how do you determine the right option?
In this article, we will take a closer look at the pros and cons of hosted and on-premise VoIP, highlighting the key differences between the two.
Hosted VoIP is a cloud-based phone system that allows you to make calls through an internet connection a VoIP hosted PBX provider manages.
Instead of forwarding your calls to a network within your business’s infrastructure, a hosted VoIP system passes them through the internet. Doing so allows you to make calls anywhere with an internet connection.
Furthermore, since the service provider handles all the system management, hosted VoIP is very hands-off.
With on-premise VoIP, all your VoIP hardware is located at your organization’s physical office. You simply buy or lease the software and server hardware, which your IT team or telecom provider will install on your premises.
Calls will go through the on-premise server that transmits them over a dedicated voice network connection.
Your telecom provider or in-house IT team will be responsible for maintenance, user support, arranging configuration, system upgrades, and ongoing servicing.
The main difference between on-premise and hosted VoIP is how you deploy the two. While a VoIP provider manages a hosted VoIP, on-premise VoIP runs on your company’s infrastructure. This difference gives each setup unique features.
For instance, on-premise VoIP gives you complete control of the network, but it also significantly increases maintenance costs.
The right option will depend on your needs and preferences. As such, the best way to determine which option is ideal for you is to pit hosted vs. on-premise VoIP and uncover their pros and cons.
Despite the lack of complete control, this setup offers plenty of benefits that make it ideal for many small and medium-sized companies. Some of these advantages include:
As beneficial as a hosted VoIP system might be, it still comes with certain drawbacks, such as:
Some of the advantages your business stands to enjoy with this setup include:
In addition to these benefits, you will also have to contend with certain drawbacks, such as:
Considering the differences between hosted vs. on-premise VoIP, it is vital to choose the right system to deploy. As daunting as this might seem, certain factors will help streamline the decision-making process.
If speed and reliability are a primary concern, then an on-premise VoIP might be the better option for you.
Uptime is essential for all businesses. As such, you must consider the system’s resiliency and redundancy. Resiliency describes your system’s ability to manage an internet service failure, while redundancy deals with physical hardware failure.
In most cases, hosted VoIP systems offer enhanced disaster recovery options that help keep you connected 24/7.
Which business isn’t interested in growth?
The flexibility a hosted system offers can be beneficial if your establishment has a dynamic staffing environment. You can easily add new users or scale back as needed. Additionally, if you are to move or open another location, a hosted VoIP setup offers quick and seamless transitions.
Installing any VoIP telephone system requires investment. Some businesses might look at the upfront costs of on-premise systems and opt for the alternative. However, though purchasing an on-premise system demands a larger investment, it can be more cost-effective.
That is why you should look at the total ownership cost when considering which option to go for. Remember that hosting fees can quickly add up, especially if you have many users. In some cases, you are better off with a large, one-time investment.
Every business is unique. As such, it is essential to find solutions that are suited to your goals and needs.
That said, the nature of a hosted VoIP system and the benefits it offers give it an edge over its counterpart. Investing in a hosted VoIP PBX system promises to help your business optimize communications while reducing costs.
Are you interested in learning more? Do you need help weighing hosted vs. on-premise VoIP? Reach out to TelcoSolutions today and access personalized solutions that we guarantee will streamline and scale communications.
Thanks to our top-notch security measures, you won’t have to worry about VoIP hacking or other threats.
Contact TelcoSolutions today at 800-546-9810 to schedule a consultation and let our knowledgeable team help you determine the better option between hosted vs. on-premise VoIP.
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