How to Choose Between Hosted VoIP & On-Premise for Work
Imagine your team struggling with an outdated phone system: missed calls, poor call quality, and high maintenance costs. These are common challenges businesses face when they rely on traditional phone systems. In our fast-paced world, switching to a VoIP system, such as hosted VoIP or on-premise VoIP, can accelerate communication and save money. Now, it can be confusing, but grasping the main differences will guide you to the right choice.
In this guide, we'll look at both options. We'll help you choose what suits your business best, and whether you need flexibility, security, or are concerned about budget.
What is Hosted VoIP?
A hosted VoIP system is a cloud-based service. The service provider manages the main infrastructure off-site, such as the PBX (Private Branch Exchange). To get started, all you need is a VoIP phone and an internet connection. The provider will manage the server, updates, and maintenance on your behalf.
Key Benefits of Hosted VoIP
- Cost-Effective: Hosted VoIP eliminates the need for pricey hardware and upkeep. So, it offers lower initial costs and reliable monthly payments.
- Scalable: Easily add or remove users as your business grows, without requiring physical changes to the system.
- Remote Access: Employees can call and receive calls from anywhere. This is ideal for businesses with remote or hybrid teams.
Hosted VoIP is ideal for businesses that need flexibility and ease of maintenance. It's also perfect for companies with teams spread out across different locations. Plus, it helps reduce costs without losing communication quality.
What is On-Premise VoIP?
An on-premise VoIP system involves setting up and managing the PBX hardware on-site within your business. This system requires physical equipment, such as servers, routers, and phones, which are set up in your office. The system is either managed by your internal IT team or an external provider.
Key Benefits of On-Premise VoIP
- Control: With on-premise VoIP, your business can manage the system entirely. This means you can customise features and improve security as needed.
- Reliability: On-premise VoIP doesn't need internet access. This means it provides more consistent call quality. It's great for businesses in places with unstable internet connections.
- Security: As the system is located within your office, you can implement and monitor your security protocols.
On-premise VoIP works well for businesses needing control over their communication. This is often the case for larger companies with in-house IT teams or those that require additional security for sensitive data.
Key Differences Between Hosted & On-Premise VoIP
Now that we've covered both systems, let's break down the critical factors that will help you decide which VoIP solution is right for your business:
Cost
- Hosted VoIP: Low initial setup cost and pay-as-you-go monthly fees, with no need for physical hardware.
- On-Premise VoIP: High upfront costs for equipment and installation, plus ongoing maintenance fees.
Scalability
- Hosted VoIP: You can easily add or remove users, making it ideal for businesses with fluctuating staffing or rapid growth.
- On-Premise VoIP: Scaling involves adding more hardware and setting up additional equipment. This can be time-intensive and pricey.
Mobility
- Hosted VoIP: Employees can use the system from anywhere. This allows them to work remotely while retaining all features.
- On-Premise VoIP: Mobility is more limited; however, remote access can be set up at an additional cost.
Security
- Hosted VoIP: The service provider manages security. Therefore, it's crucial to select one with strong encryption and robust data protection.
- On-Premise VoIP: Offers more control over security, as your business manages the system directly.
Maintenance
- Hosted VoIP: System maintenance, updates, and troubleshooting are handled by the service provider.
- On-Premise VoIP: It needs an internal IT team or a third-party contractor to manage maintenance and updates.
What's the Best VoIP Solution for Your Business?
Choosing the right VoIP system for your business depends on a few key factors. Cost, scalability, and security are among the most important. Here's how to choose between hosted VoIP and on-premise VoIP based on your business needs.
Consider Hosted VoIP if . . .
- You have a small to medium-sized business and need a solution that won't break the bank. It should also require little upfront investment.
- Your business needs to be scalable quickly, with the ability to easily add or remove users.
- You have remote or hybrid employees who need the flexibility to work from anywhere. This helps them stay effective while keeping functionality intact.
Consider On-Premise VoIP if . . .
- You have a larger business with an in-house IT team that can manage hardware and software.
- Your business needs more control over the system and security. This is especially crucial when handling sensitive data.
- You prefer owning your equipment and have the resources to manage the infrastructure.
Treken offers customised options for both hosted and on-premise VoIP. We're here to help businesses decide which is best for them. Our team can guide you through the decision-making process and help you implement the ideal system for your company.
"We would highly recommend the VoIP solution provided by Treken to any company! Having had issues with our previous phone system/provider, Treken were our first port of call when we decided to upgrade our system to something a lot more user friendly and reliable."
-- Kat Hough / Group Office Manager
Take Your Business Communication to the Next Level
Choosing between hosted VoIP and on-premise VoIP boils down to your business's size, budget, and communication needs.
- Hosted VoIP offers flexibility, scalability, and cost savings. This makes it an excellent choice for companies with remote teams or those aiming to expand quickly.
- On-premise VoIP gives businesses control and security. This makes it a suitable choice for companies with dedicated IT teams that require comprehensive oversight of their communication systems.
Whether you choose hosted VoIP or on-premise VoIP, we're here to ensure your communication system supports your growth.
Call 01202 612333 or contact Treken online today to discover how we can help you implement a VoIP system tailored to your business's needs.
