Hosted vs. On-Premise Solutions for Your VoIP


VoIP allows companies to save money and boost their productivity, as well as their efficiency. However, companies should also be aware that they have hosted and on-premise VoIP solutions as options. Both hosted and on-premise VoIP solutions are effective, reliable communication systems that offer different benefits. So, which one is best for your company?

Here, we break down the benefits of a hosted versus on-premise solution to help you choose the right solution for your business.

1. Installation

On-premise VoIP systems need to be installed in a physical space in your office. This process requires equipment that also needs to be managed and maintained, usually by a team of experienced IT staff members. Sometimes it’s possible to outsource management of your phone systems, but this can add to the overall cost of installing your communication solution.

On the other hand, a hosted VoIP solution means the entire system is maintained by a hosted VoIP provider. Other than physical phones, everything runs on a virtual network, making the cost of implementation significantly lower. Maintenance is also managed by the provider, so there’s no need to worry about hiring your own team to manage the system.

2. Security

On-premise solutions are generally assumed to be safer when it comes to ensuring IT security. In certain cases, this is true. If you require large-scale IT resources to maintain your office communications, then on-premise equipment and staff can provide better control regarding security. This allows you to keep a close eye on everything to ensure that your own team is trustworthy enough to manage it themselves.

However, for many small-to-medium enterprises, this kind of security protocol and communication platform is unnecessary. For small-scale organizations, cloud-hosted VoIP is a better fit, given that their provider can capably take care of all security concerns. Reliable providers have stringent security measures in place and are experienced in pinpointing vulnerabilities and protecting your data.

3. Control

Granted, on-premise solutions do give you better physical control of your communication system – you can create call flows suitable for your requirements that are specifically tailored to your company’s needs. For large-scale, blue-chip organizations that can afford on-premise solutions and task a team of dedicated IT technicians with its management, it certainly is the best choice.

With a cloud-based provider, you hand over a certain level of control to your provider. But look at this way – it’s the price you pay for the convenience of having everything taken care of for you. It’s also very important that you work with a trusted and reputable provider, as they will be responsible for managing important, sensitive data for your company. This means they need to be able to maintain confidentiality while providing reliable service for your organization.

4. Scalability

On-premise VoIP solutions require physical equipment and staff to manage and maintain the system – this will have a direct impact, should you decide to scale-up your system in the future. For example, if you decide to expand your employee base, you will need additional equipment, and possibly staff, to maintain that equipment.

The virtual nature of a hosted VoIP solution means it’s easy to expand services on an as-needed basis. Your best option is to opt for per-seat pricing so you can simply call your provider and let them know that you will be adding or removing team members.

Bottom line?

When it comes to discussions regarding an on-premise versus hosted solution, it boils down to what you need. If you have the money and manpower to dedicate to running and maintaining an in-house VoIP system, then it could be a great option for your company. But, if you want to take a more convenient and cost-efficient route, then get in touch with us at GoToConnect and find out what we can do to help your business!