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Purchased, On-Premise or Hosted VoIP solution?

Hosted VoIP

Purchased, On-Premise or Hosted VoIP solution?

 

If you have decided to join the technology of the future and use a VoIP telephone system in your business, the first thing that you’ll need to decide upon is  whether you want a purchased on-premise system, a managed system or hosted VoIP system. In this article, we will explain the pros and cons of each type to help you decide which one is the right choice for your business.

 

Purchased on-premise VoIP:

 

This type is usually preferred by large businesses who have the financial capability and space in their premises to purchase the required equipment, including servers, cables and IP phones and run the VoIP system on their own. They also have an experienced IT team to fully manage, customise, maintain and upgrade the system without the need for technical support from an external party.

 

Pros:

 

  • Full control over your VoIP system: The ability to modify and upgrade the system any time you want.
  • Limitless customisations to your system at any time.
  • No costly contracts as you already own the system.

 

Cons:

 

  • High upfront costs.
  • The need to employ experienced IT staff.
  • Continual operational expenses including maintenance and repairs.

 

Managed On-Premise VoIP:

 

This type is generally for small to medium sized businesses that do not  necessarily have the technical expertise to maintain and customise its system. With managed VoIP, your business will purchase the system but a third party will provide the equipment, software, and technical expertise so you’ll be able to enjoy all the benefits of a VoIP system and leave the hassle of maintenance and upgrades to your third party.

 

Pros:

 

  • Cost-effective for small to medium businesses.
  • No need for an internal IT staff to manage the system.
  • Reduced risks for a companies telecommunication investment.

 

Cons:

 

  • Recurrent fees may end up in several years being higher than if the company chose to purchase the equipment and run the VoIP system without a third party.
  • There is a risk of losing the third-party support if the third party go out of business.

 

Hosted VoIP:

 

Hosted VoIP is one of the best telephone solutions for small to medium businesses. However many large businesses use this type of service as well simply because it is convenient, flexible and much cheaper than purchased and managed VoIP. With this type of service, there’s no need to purchase VoIP equipment as all the infrastructure and hardware required will be hosted by the VoIP provider and the pricing is based on usage or a fixed flat rate. The provider will manage the calls and route your calls and data over the PSTN line to a hosted-PBX system.

 

Pros:

 

  • Affordable monthly fees.
  • Save companies from paying a lot of money to purchase VoIP equipment and manage the system, which allows them to invest in the company’s development instead.
  • Companies can use existing phones or upgrade to newer models.
  • There is no need to employ the cost of IT staff in your businesses as all the management and maintenance work will be carried out by your VoIP provider.
  • The cloud nature of the hosted VoIP allows you to manage your business communications from anywhere and at any time through an online management portal.
  • Troubleshooting can be done remotely and quickly by your VoIP provider.

 

Cons:

 

  • Considering the reduced risks, low costs, stable service and quick remote technical support … We can’t think of any cons really!

 

Learn more about VoIP in our article “VoIP for Dummies – Part 1” and “VoIP for Dummies – Part 2

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Mark Bonito
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