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.
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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