The Best VoIP for Your Business: Hosted vs. Premise Based Telecom Tech

Many companies are taking the plunge to go from On-Premise based telecommunications to the more versatile Hosted, or Cloud, based telecommunications. Both systems are Internet based, providing a higher quality of voice-over internet protocols (VoIP) while keeping costs down for the long term. However, there are benefits to moving toward the hosted based telecommunications technology, ranging from cost, installation, maintenance, and even disaster recovery.

Hosted telecommunications, or Internet, cloud-based telecommunications, has the phone system provider taking responsibility for housing the IP servers as well as the premise vs hosted IP servicestechnology required to keep the internet system running and maintained. The provider offers a monthly fee to use the service which includes the minutes and any applicable add-on services.

On-premise telecommunications is just like hosted phone service, except the phone equipment is at a specific location (‘on the premises’). On-premise voice services tend to use more current technology to support the IP routing and IP based phones being used in the system. The calls can be routed through a tradition phone service provider but all of the technology is housed on site and gateway cards can be used to translate a regular phone service into VoIP. 

There are pros and cons for using either system but there is a clear benefit to hosted telecommunications. Here’s a breakdown of the benefits of hosted telecom:

Cost Effective Solution

The capital expenditures of buying the equipment necessary to set up a VoIP phone system can be much lower with hosted IP because all you have to do is purchase the phones. The provider supplies the services and maintains the equipment. Beacon Telecom’s Voice and Voice+ services are cost-effective ways to have an updated VOIP system for your business. Premise based IP requires the purchase of everything, from the phone hardware, the IP equipment, rack space, maintenance and installation, etc.

Migration of Technology

With Hosted IP, IT teams find it easier to upgrade technology and features alongside the existing technology, mainly because that is sponsored by the service provider and they’ve already accounted for that. With Premise based IP, there may be a need to remove, replace or discard existing infrastructure to account for the new situation. It can also take as long as months to years to roll-out the new system company-wide. Hosted IP allows the option for remote support for updates and other troubleshooting issues. 

Provisional Requirements

Hosted IP doesn’t need to worry about the service contract with the provider since landline access is internet based and is included in the per-month-fee, along with licensing and permissions. Premise IP has the added fee of arranging the contracts with the external service provider to obtain access. They also have to create independent licensing contracts and provide proof of compatibility in technologies, which is extra work.

Disaster Recovery

Hosted IP has the benefit of freedom of responsibility but it also allows for codependency. The hosted IP provider often will supply reliable redundancies just in case of any catastrophic system failures, preventing any loss of data, services or functionality. However, without direct access to the equipment, there will be delays in the system’s restoration. Premise based IP has the extra cost of building such redundancies into their on-location servers, however, there is some peace of mind that the problem can be rectified quickly and at any time. Also, services can be re-routed on site to functional landlines while the VoIP is being serviced. However, that’s usually very expensive and only the largest of companies make that kind of an investment.

Companies can benefit in both cases, so a phone system is more of a matter of preference and which best fits your needs and budget. However, seeking a reliable, functional and comprehensive Hosted IP telecommunications provider will not only benefit your organization, it will bring your company into a new era of internet based communications. For more information or for questions on how you can update your telecom system using Beacon Telecom, contact us today.

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