Choosing Between a VoIP Hosted PBX and an On-Site VoIP PBX

So you’ve decided to make the switch to VoIP. Great choice, but which VoIP solution should you adopt for your business? Each solution has its own pros and cons to weigh against the needs of your business. Here are some descriptions of the two most popular systems, with their advantages and disadvantages.

On-Site VoIP Phone System

An On-Site VoIP system is a phone solution that requires its equipment to be installed on your premises. This includes all servers, cables, and routers. Usually your business is the party that’s responsible for the system’s installation and maintenance. Large Enterprises often use these solutions, as they prefer the high level of customization, and have the IT capacity to support the installation and maintenance.

On-Site VoIP Advantages

  • Immediate Upgrades
  • Long-term overall expense is feasible
  • Highly customizable
  • No service level contracts
  • Client determines the specs and configuration

On-Site VoIP Disadvantages

  • High up-front costs
  • Perpetual Maintenance and Operation Fees
  • Additional IT labor costs

Hosted VoIP Phone Systems

With many feature-rich solutions to choose from, Hosted VoIP phone systems usually depend on a phone service provider’s remote Hosted PBX equipment to handle a client’s voice and data needs. All of the client’s calls are routed from a traditional PSTN to the provider’s Hosted PBX system. It should be noted that Hosted VoIP are a great phone solution for SMB’s, as SMB’s often have limited IT resources and budget and yet still require a full-featured business phone solution.

Hosted VoIP Advantages:

  • Allows new features to be added or current features to change as the needs of your business evolve.
  • Allows for increases and decreases in capacity needs.
  • Remote server support.
  • Fast deployment.
  • Additional VoIP hardware or software not required.
  • Twenty-four hour support.
  • Buy seat licenses only as needed.
  • No Contracts or Cancellation Fees.
  • Best for Disaster Preparedness since the equipment is off-site

Hosted VoIP Disadvantages:

  • Recurring fees.
  • Vendor-dependent.
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