Pros and Cons of Hosted Unified Communications


Hosted Unified Communications provides businesses with the ability to move their communications services including dial tone, voice mail, video conferencing and other IP-based business applications into the cloud.

The main difference between hosted unified communications and on-premise phone systems that support unified communications is that hosted solution are physically located at the communications service provider facilities rather than the customer's location.

The typical small to mid-sized business may not necessarily need all functions associated with unified communications but often times the minimum investment required for purchasing and maintaining on-premise solutions does not prove to be most cost effective for the dynamic nature of SMB businesses - this is where hosted unified communications can flourish.

Pros of Hosted Unified Communications:

  • Lower Up Front Costs - pricing based on per seat licensing and typically does not require major upfront capital expenditures.
  • Greater Long-Term ROI - as companies fluctuate in size and communications needs the likelihood for longer term ROI improves.
  • Allows for Redundant Communications - businesses do not need to relinquish all control of communications to cloud; often times hybrid solutions combine hosted with on-premise to produce more cost effective solutions.
  • More Efficient Use of Broadband - bandwidth usage is better utilized because native apps within unified communications are monitored and regulated through the hosted service.
  • Reduces Burden on in-house IT Staff - can engage the hosted service provider to deal with any service issues or to upgrade / downgrade services while taking care of general IT functions.

Cons of Hosted Unified Communications:

  • Customers Don't Own Applications - because you're leasing access to the services through your monthly reoccurring costs; controversially your business didn't spend the capital to develop the applications.
  • Higher Reoccurring Costs - versus upfront capital expenditures on equipment and licensing with lower reoccurring costs.
  • Not Available in All Areas - because of the nature of internet connectivity not all areas can support the bandwidth requirements necessary for unified communications.

Whether your business requires only dial tone or a full implementation of unified communications solutions, exploring the hosted option makes sense on many levels.

There are many outsourced unified communications solutions in the marketplace today for almost every variant of business. When in doubt, it's best to consult with the Business VoIP Experts.

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