VoIP Solution Showdown: Hosted vs. On-Premises
Deciding to go with a Voice Over IP (VoIP) phone system basically comes down to one question: Do you like being more productive, reachable, and flexible while saving money? Few would say no to that.
Deciding whether you want to go with a cloud-hosted VoIP solution or host your own on-premises solution can be a bit trickier. Let’s take a look at what you can expect from each.
A cloud-hosted VoIP solution comes with no equipment to purchase and no upfront costs. You’ll pay your VoIP provider a monthly service fee based on how many employees use the service and the package you’ve selected. Additional employees and services can be added to your plan quickly, and no additional IT staff are necessary to maintain the system. Bottom line: Cloud-hosted VoIP can be a very affordable solution for startups, large companies or companies expecting to experience a lot of growth in the coming years.
Purchasing and maintaining your own VoIP solution in your office will save you the recurring monthly service fee that a cloud-hosted VoIP charges per employee, but it does come with a substantial upfront costs to purchase the equipment. Of course, you would also incur fees for upgrading the equipment when necessary, and additional IT staff would be required to manage and maintain the system. Some on-premises systems may offer a feature or two that a cloud-based plan will not – especially if you compare on-premises solutions with an economized cloud-hosted plan. Bottom line: On-premises plans may save money over the long term if your company is small (15 employees or fewer) and you don’t mind footing the initial startup bill and ongoing IT expense.
Although cloud-hosted VoIP is the clear winner because of its affordability, flexibility and nonexistent maintenance requirements, a few businesses will save some money in the long run with an on-premises systems. Speak with a knowledgeable VoIP specialist who can look at your business’s unique needs and help you pick the plan that best meets them.