The merits of having a private phone system at your company are considerable. However, if you have never been faced with making decisions over this type of system before, it can feel a little overwhelming—especially if you aren’t really clear on how a system such as this works.
In this blog, the team at Connectivity will describe the differences between a Hosted and On-Premise VoIP to help you make the best decision for your business.
What is Hosted VoIP?
This is a phone system that is cloud-based, and calls are made on a hosted VoIP system—and will be routed through your Internet provider’s server. This technology is very popular amongst smaller businesses as system maintenance is handled by the service provider and not the business itself. This is a perk if you don’t have an internal IT department—and it will end up helping you control overhead expenses.
Here are some pros associated with Hosted VoIP:
No maintenance fees
Low setup costs
Timely implementation
No hardware to manage onsite or system maintenance
Internet service provider is fully responsible for updates, maintenance, and management
Here are some cons associated with Hosted VoIP:
Internet service provider controls the system
Equipment must be purchased
Network connections can impact call quality
What is On-Premise VoIP?
This is a more customizable type of phone system that is typically used by larger businesses that have internal IT departments that are capable of handling system maintenance. On-Premise VoIP is located on physical hardware, as opposed to the cloud.
Here are some pros associated with On-Premise VoIP:
You retain full control of the system
Customization is possible
No risk of experiencing a price increase by a service provider
Phones can be easily added without experiencing extra costs
Here are some cons associated with On-Premise VoIP:
Installation costs could be quite high
In-house system maintenance and management is required
Could become complicated as a company grows
How To Decide What System is Best for Your Business
The system you end up choosing depends on the type of business you run and your operations. The size of your company definitely matters as well as your internal infrastructure and what types of resources you have. Furthermore, your long-term growth plans should also be considered. Finally, when deciding upon a private phone system, make sure you answer the following questions:
What is your budget?
Do you have an IT team?
Does your IT team have the knowledge, skills, and ability to manage a phone system?
What are your growth plans?
How much do you want to spend in the long term?
How do you plan on handling redundancy and resiliency?
Contact Connectivity for a Consultation
Of course, our team also welcomes the opportunity to consult with you and develop a solution to address your private phone system needs. Reach out to our team today to learn about our offerings, capabilities, and vendor partners. We are eager to help your business reap all of the benefits of a private phone system.