The difference between Hosted and On-Premise VoIP systems
Posted on 24 January 2022 by Beaming SupportAs the ISDN shut-off is steadily approaching, it’s time to start thinking about the alternatives to your traditional phone system. You might have already made the switch and ended up with a solution that doesn’t suit you anymore or, you might not even know where to start.
It’s not always clear what the differences are between an On-Premise VoIP system and a Hosted VoIP system or which option is right for your business. This post should clear things up.
Both phone systems use VoIP (Voice over Internet Protocol), or to put it simply, an internet connection to deliver calls rather than traditional copper PSTN or ISDN lines.
On-Premise VoIP means that you have the hardware to facilitate the transfer of calls on-site. You own the equipment, which will require maintenance to keep it working. If you don’t have in-house skills, some providers offer maintenance, although it will be an additional cost.
Hosted VoIP means you don’t have any equipment on site, it is hosted in the cloud, which means it is accessible from anywhere. An advantage is that there is no physical ‘box’ on your site. Instead, the system is hosted virtually in a secure data centre – you are not reliant on any business sites being online for the system to operate as normal. Other than possibly plugging in a handset, there is nothing to install or maintain. Instead, you pay a monthly fee to your provider for using their services.
Hosted Phone System | On Premise Phone System | |
Hardware | None | Owned, installed and maintained by the user or by professionals contracted by the user |
Security | Managed by provider | The responsibility of the user |
Number of users | Unlimited | Limited by the amount of hardware on site |
Use off-premise? | Yes | Depends upon the system and requires VPN and/or complex Firewall configuration to be secure |
Resilience | Highly resilient with the ability to plug phones in to alternative internet connection and operate as normal. A quality provider will host across multiple data centres in different locations to further increases the resilience of the solution. | Limited to service levels and depends how quickly internet or power can be restored or hardware fixed. |
Maintenance | None | The scale of the hardware will determine the amount of maintenance but in any case, an annual service will be the minimum plus any necessary repairs |
Costs | Initial set-up fees: Handsets – depending on your requirements Monthly fees: System fee License fee for each user Additional fees: None | Initial set-up fees: Phone system hardware and handsets Monthly fees: SIP trunk line Rental Additional fees: Yearly servicing and maintenance Potential extra hardware costs should you need to scale up the operation to support more users. |
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Although ultimately both systems perform the same function, they can differ drastically in terms of flexibility, price, and resources. Neither is a ‘one size fits all’ solution so be sure to consider what requirements you have of your system before committing to a contract.
Beaming has built BeamRing, a hosted phone system that brings together the most reliable technology and connectivity to provide businesses with a flexible IP telephony solution. Whether you are just looking to move away from ISDN, leave the hassle of an outdated phone system or require the flexibility that cloud can offer to drive your business forward, BeamRing can offer a digital phone line package to suit your needs.
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