--- title: Hosted PBX & VoIP vs. On-Premise Phone Systems description: Making the best investment for your business requires understanding the benefits and potential challenges of both a Hosted PBX & VoIP and on-premise phone system. Here is a side-by-side comparison that will help you learn the pros and cons of each solution. image: https://blog.totalprosource.com/hubfs/Hosted%20PBX%20vs%20On%20Premise%20Comparison%20Chart.jpg --- - [Customer Support](https://www.totalprosource.com/support) - [Join Our Team](https://www.totalprosource.com/careers) [![logo-m](https://blog.totalprosource.com/hubfs/logo-m.svg)](https://www.totalprosource.com/) - [Solutions](https://www.totalprosource.com/solutions) - [IT Solutions](https://www.totalprosource.com/solutions/it-solutions) - [Managed IT Services](https://www.totalprosource.com/solutions/it-solutions/managed-it-services) - [Cybersecurity](https://www.totalprosource.com/solutions/it-solutions/cybersecurity) - [Business Continuity](https://www.totalprosource.com/solutions/it-solutions/business-continuity) - [Hosted Voice](https://www.totalprosource.com/solutions/it-solutions/hosted-voice) - [Cloud Solutions](https://www.totalprosource.com/solutions/it-solutions/cloud-solutions) - [Managed Content Services](https://www.totalprosource.com/solutions/managed-content-services) - [Digital Transformation](https://www.totalprosource.com/solutions/managed-content-services/digital-transformation) - [Business Process Optimization](https://www.totalprosource.com/solutions/managed-content-services/business-process-optimization) - [Accounts Payable Automation](https://www.totalprosource.com/solutions/managed-content-services/ap-automation) - [Document Management for SMBs](https://www.totalprosource.com/solutions/managed-content-services/document-management-smbs) - [Print Solutions](https://www.totalprosource.com/solutions/print-solutions) - [Managed Print Services](https://www.totalprosource.com/solutions/print-solutions/managed-print-services) - [Copiers & Printers](https://www.totalprosource.com/solutions/print-solutions/copiers-printers) - [Production Print](https://www.totalprosource.com/solutions/print-solutions/production-print) - [Industries](https://www.totalprosource.com/industries) - [Education](https://www.totalprosource.com/industries/education) - [Healthcare](https://www.totalprosource.com/industries/healthcare) - [Government](https://www.totalprosource.com/industries/government) - [Manufacturing & Distribution](https://www.totalprosource.com/industries/manufacturing-distribution) - [Banking & Financial Services](https://www.totalprosource.com/industries/banking-financial-services) - [Legal](https://www.totalprosource.com/industries/legal) - [Non-Profit & Religious](https://www.totalprosource.com/industries/non-profit-religious) - [Small & Medium-Sized Businesses](https://www.totalprosource.com/industries/small-medium-sized-businesses) - [Professional Services](https://www.totalprosource.com/industries/professional-services) - [Resources](https://www.totalprosource.com/resources) - [Who We Are](https://www.totalprosource.com/who-we-are) - [About](https://www.totalprosource.com/who-we-are/about) - [TotalPro Experience](https://www.totalprosource.com/who-we-are/totalpro-experience) - [History](https://www.totalprosource.com/who-we-are/history) - [Awards](https://www.totalprosource.com/who-we-are/awards) - [Community Involvement](https://www.totalprosource.com/who-we-are/community-involvement) - [Locations](https://www.totalprosource.com/who-we-are/locations) - [Contact](https://www.totalprosource.com/contact-us) Speak With a Solutions ExpertContact Menu**Close** ### Sales or General Inquiries Our business is built on helping you leveraging technology for strategic advantage. Contact our team to learn how our powerful, scalable, affordable technology solutions can transform how you do business. Contact a Solutions Expert ### Customer Support Our solutions are backed by dedicated support teams who are committed to your success. Whether you need IT support, software support, or hardware service, we've got you covered so you can get back to business. [Contact Support](https://www.totalprosource.com/support) [1.888.698.0763](tel:18886980763) ![](https://blog.totalprosource.com/hubfs/raw_assets/public/Prosource_August2020/images/close.svg) ### Contact a Solutions Expert # Hosted PBX & VoIP vs. On-Premise Phone Systems By: [Danielle Hoverman](https://blog.totalprosource.com/author/danielle-hoverman) May 3, 2018 Hosted VoIP (cloud-based phone system) is where your phones connect through your internet connection to a provider that maintains the equipment at an off-site cloud data center. An on-premise solution is where your hardware is kept on-site in your server closet. Making the best investment for your business requires understanding the benefits and potential challenges of both a hosted and on-premise phone system. Here is a side-by-side comparison that will help you learn the pros and cons of each solution. **\[You Might Also Like: Blog Article - ["What is Hosted PBX & VoIP and How Can It Benefit Your Business?"](https://blog.totalprosource.com/what-is-hosted-pbx-hosted-voip-and-how-can-it-benefit-your-business)\]** [![Hosted PBX vs On Premise Comparison Chart](https://blog.totalprosource.com/hs-fs/hubfs/Hosted%20PBX%20vs%20On%20Premise%20Comparison%20Chart.jpg?width=4264&name=Hosted%20PBX%20vs%20On%20Premise%20Comparison%20Chart.jpg)](https://blog.totalprosource.com/hubfs/Hosted%20PBX%20vs%20On%20Premise%20Comparison%20Chart-1.pdf) *Click image to enlarge* **Pros: Hosted PBX & VoIP** - Software updates & maintenance handled by the provider - Frees up IT resources to focus on business-critical tasks - Service providers typically have more resources to implement your solution - Implementation is cheap, quick & easy - Minimal in-house IT resources needed - Your provider carries the risk, work, and complexity - Scaling up or down is quick - Software updates happen automatically so your system is always up-to-date - Lower setup cost - No maintenance costs - OPEX (operating expense) cost model **Cons: Hosted PBX & VoIP ** - Services run over the internet, so adequate bandwidth & internet reliability is required - Training required for users which may or may not be offered by your provider - Potentially higher ongoing service cost **Pros: On-Premise** - You have control over entire system - You can make any changes and updates to your equipment at anytime - Intimate knowledge of system’s capabilities since you are handling deployment - Deployment times take longer - You have control & flexibility - No risk of fee increases **Cons: On-Premise** - All software updates & maintenance must be done by internal IT staff or outsourced - Requires a lot of IT & financial resources to make complex or highly customized changes - Training required for users which may or may not be offered by your provider - Every expansion increases complexity, which you have to manage yourself - Higher setup costs - Unknown long-term maintenance & support costs  Interested in learning more about Hosted VoIP & PBX, or are you ready to make the switch now? Contact us at 888.698.0763 today [Business Phone System](https://blog.totalprosource.com/topic/business-phone-system), [Hosted PBX & VoIP](https://blog.totalprosource.com/topic/hosted-pbx-voip) ## Read On ### [What is Hosted PBX & Hosted VoIP and How Can It Benefit Your Business With the percentage of the workforce working remotely or on the go on the rise, it is increasingly...](https://blog.totalprosource.com/what-is-hosted-pbx-hosted-voip-and-how-can-it-benefit-your-business) ### [5 Factors to Consider When Choosing a Phone System Effective business communication is key to the success of businesses, and often overlooked, this...](https://blog.totalprosource.com/5-factors-to-consider-when-choosing-a-phone-system) ### [6 Signs It's Time to Stop Outsourcing and Start In-House Print Production A common dilemma that many businesses face is deciding if it would be faster, cheaper, and easier...](https://blog.totalprosource.com/6-signs-its-time-to-stop-outsourcing-and-start-in-house-print-production) [![footer logo](https://blog.totalprosource.com/hubfs/raw_assets/public/Prosource_August2020/images/logo-t.svg "footer logo")](https://www.totalprosource.com/) [1.888.698.0763](tel:1.888.698.0763) [Support](https://www.totalprosource.com/support) [Careers](https://www.totalprosource.com/careers) [Locations](https://www.totalprosource.com/who-we-are/locations) [Blog](https://blog.totalprosource.com/) [Privacy Policy](https://www.totalprosource.com/privacy-policy) [![facebook](https://blog.totalprosource.com/hubfs/raw_assets/public/Prosource_August2020/images/sm-f-m.png)](https://www.facebook.com/totalprosource) [![linkedin](https://blog.totalprosource.com/hubfs/raw_assets/public/Prosource_August2020/images/sm-i-m.png)](https://www.linkedin.com/company/prosource_2/) [![twitter](https://blog.totalprosource.com/hubfs/raw_assets/public/Prosource_August2020/images/sm-t-m.png)](https://twitter.com/totalprosource)