Monday, August 17, 2009

Hosted vs. Premised VoIP

Picking a VoIP service for your business requires an important difference. Should you go with a hosted service or purchase a premise-based system? Let’s look at the difference.

A premise based system requires a PBX, in addition to the phone infrastructure such as routers that are common to either premise or hosted. Some companies prefer premise-based equipment because of the control and possible long-term cost savings. For businesses that don't depend on the ability to quickly manage and configure their telephony system, a hosted VoIP solution might be a better alternative as it less complex, and you don’t

Hosted VoIP internet phone solutions could be suitable choice for many businesses that starting off and/or looking for a simpler phone solution. You usually obtain the hosted solution bundled with the system and the service. The ongoing service for a hosted solution can include unlimited domestic long distance and local calls.

Hosted services can be deployed on a line-by-line basis, which means that they are easily expandable. They allow for flexibility during the transition from premise-based equipment to a hosted service because they can co-exist with previously existing premise equipment. This means that an enterprise doesn't need to transition all of its equipment at the same time, which would usually be the case with a premise-based PBX.

Disadvantages of premise based systems include costly up-front capital expenditures on hardware and software, although there are leasing options available. There are ongoing maintenance fees, software and hardware upgrades and operational expenses.

Each company needs to individually assess their needs and budget and research both VoIP solutions to understand features, control and cost.