Deciding between Hosted VoIP and On Premise VoIP


Managed VoIP services relieves businesses from task of managing the company's telephone equipment whereas on-premise VoIP require businesses to purchase VoIP equipment and maintain the telephone system.

When evaluating which methodology is best suited for your company's needs it is important for businesses to understand the differences between the two which helps determine which system is a fit for your particular organization.

Whether you end up choosing managed VoIP services (also know as hosted VoIP services) or if your organization has the human resources capabilities to facilitate a VoIP systems on site the same equipment will be necessary - voip phones, an IP-PBX server and a connection to the internet.

The primary difference between managed VoIP and on-premise VoIP phone systems deals with how the VoIP technology is deployed and the upfront and ongoing costs of VoIP service.

Managed VoIP services have much low barriers to entry because of the fact that businesses do not need pay upfront costs for VoIP phones and an IP PBX server or have specialized experts on staff to manage your communications system. Managed VoIP providers will charge companies a monthly fee on a per user basis which includes the cost of all hardware, software licenses, system maintenance and support.

On-premise VoIP systems tend to be better suited for companies and organizations with the need for supporting a large number of employees and a mobile workforce. Upfront costs of VoIP phones and IP-PBX systems can be cost prohibitive for smaller businesses who also typically lack the IT skills to manage on-premise VoIP system.

Businesses that can support on-premise VoIP will realize the greatest advantages of on-premise VoIP systems include more control over your communications options, custom integrations with 3rd party software and overall system integrity.

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