The difference between Hosted and On-Premise VoIP systems


The difference between Hosted and On-Premise VoIP systems

Posted on 24 January 2022 by Beaming Support

As 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


NoneOwned, installed and maintained by the user or by professionals contracted by the user


Managed by providerThe responsibility of the user

Number of users

UnlimitedLimited by the amount of hardware on site

Use off-premise?

YesDepends upon the system and requires VPN and/or complex Firewall configuration to be secure


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.


NoneThe 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


Initial set-up fees:
Handsets – depending on your requirements
Monthly fees:
System fee
License fee for each user
Additional fees:
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.

Best suited to

  • Companies with remote workers and or multiple locations
  • Organisations that require the best resiliency and the ability to continue working via softphones in the event of an internet failure or power fail
  • Or those that don’t want the obligation of installing and managing the system and its security
  • Organisations who can still operate without phones in the event of a power loss or internet failure
  • Those with the budget to contract a maintenance company to service the hardware
  • Organisations that require all employees and data to be at a fixed location with limited or no hybrid working

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.

Get in touch

To receive a simple quote or just to find out more from one of our friendly team call us on 0800 082 2868 or use the form below to get in touch and one of our friendly team will get back to you within one working day.

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About Beaming

We are an Independent Internet Service Provider for UK businesses. Serious about service with a network built for business; we make sure you stay connected.

From the resilient and secure network we’ve built, to the choice of tailormade products all supplied with expert service, we provide peace of mind that businesses require.


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