On-Premise vs Hosted Phone Systems

Modern VoIP business phone system come in two major flavours. One is an on-premise IP-PBX, and the other is hosted, or cloud based solution.

If you are looking at new options for upgrading your telephone system in your office, it is a good idea to take a look at the hosted PBX systems. We are aware that local, on-site telephone systems are something that everyone is quite familiar and comfortable with. However, hosted PBX systems are the latest trend in the market, and it has several advantages. If you are looking at options to replace the old telephone system at your office, then it is important to weigh all the options.

Some businesses have compulsions to have on-premise IP-PBX. Keeping track of calls, keeping tight control on call costs, privacy, and a number of other factors contribute to this requirement.

There are certain facts that distinguish on-premise phone systems from hosted PBX phone lines.

On-Premise Business Phone System:

The biggest difference in an on-premise phone system is the greater upfront costs. An estimate is approximately $500-$800 per employee which includes all expenses such as individual handsets, the main IP-PBX hardware, cabling/wiring which is mandatory to operate the system. Many newer phone systems are considered to be a hybrid as they are capable of handling both IP as well as PSTN circuits.

Another factor to consider is the maintenance of an on-premise phone system.  Maintenance has to be done regularly, so there may be a need for a network and/or technical engineer.

If you are using a hybrid system, there are additional monthly costs for the use of PSTN trunk lines. The telephone service company then adds taxes, surcharges, and additional fees.  These charges add up and can really become excessive.

Hosted PBX Service:

A hosted phone system is basically a cloud-based solution. A service provider hosts all the hardware needed in a data center, and gives you connectivity through the internet.

First, there is no need to purchase or install an IP-PBX. You only have to buy the number of IP phones you need.  All the hardware is installed in an alternate off-site data center. There is no other cabling or wiring cost because the IP phones are simply connected to your existing computer network which is connected to the Internet.

Second, since there is less hardware to maintain, monthly maintenance costs are reduced. The user simply picks up the phone, plugs it into an Ethernet jack, and the rest of the work including registration of the phone is done by the hosted IP-PBX server.

Service providers offer very attractive rates for hosted VoIP business phones. For example, Toshiba hosted phone service is available for as low as 24.99 per month.

Take a look at your requirements, and choose the best VoIP phone system ideally suited for you needs.

About Universal ComOne

Universal ComOne offers award winning business telephone systems that are right for any business. We can design a solution to fit your needs. Call 337-205-9364 for all your communication needs.