Long gone are the days when organizations would use traditional phones to host business communication. Even though the solution lasted for a good period, the dawn of digitization has paved the way for a whole new system. Something that is popularly known to be a virtual phone system.
Unlike traditional business telephony, the present-day VoIP phone system adopts the IP to route calls between communicating parties. Put simply, VoIP or voice over internet protocol is a yet new technology that helps organizations to use internet connectivity to make and receive calls.
These follow the packet switching technology where the voice is transferred in the form of data packets from the sender to the receiver. It is the reliability offered by the technology that makes it one of the leading forms of communication today.
In case you plan to switch from traditional telephony to the one using computer networks, there are two of its kind. The first being an on-premise VoIP system and the other is a hosted VoIP system. Depending upon your business needs and the features offered, you can move ahead towards adopting either of them.
To ease the situation, here we have highlighted the differences between them so that you can make a wise decision.
On-premise VoIP System
As the name suggests, the on-premise VoIP system is one where the hardware and software needed to run the system are physically installed in the office premises. Meaning that the entire setup is needed to be deployed within the office space to initiate VoIP communication.
Quite the contrary, a hosted VoIP system is one where the infrastructure is hosted on a third-party server and all you need to do is remotely access the system to initiate communication. No physical hardware installation needed when opting for a hosted solution.
What this implies is that the system would run on the cloud platform and all the maintenance and monitoring are done by the service providers.
While each of these has its own share of benefits, it is the hosted VoIP system that tends to attract more buyers as compared to the on-premise solution.
Five Reason Hosted VoIP is better than On-premise VoIP?
- Reduced Cost
One of the prominent reasons why hosted VoIP is advantageous as compared to the on-premise system is the cost linked with the same. Since hosted solutions do not require additional installation of any hardware or software, the total cost of setup is dramatically less. Research by Tech.co suggests that organizations migrating to hosted VoIP solutions tend to reduce the overall cost by 40%.
It is pretty obvious that the on-premise system mandates the need for dedicated hardware that would initiate communication. This adds to the cost incurred in setting up the VoIP infrastructure and for organizations that have just started on their journey, this might be overhead.
- Eliminate the need for monitoring and maintenance
Another reason why you should invest in a hosted VoIP phone system is the fact that it doesn’t require you to enter into maintenance and monitoring needs. With hosted solutions, it is the service provider who owns the job of regularly updating the software and keeping a check on the operations. All you need to do is indicate the features you wish to add within your system and the service provider will take care of the rest. From installation to integration, deployment, and management, everything is monitored by him.
On the other hand, an on-premise virtual phone system requires you to take everything in your hands. Right from the procurement stage to the installation and post-integration maintenance, everything needs to be done manually. In case you do not possess the technical knowledge, you might have to hire an expert to do the same, adding to the expenses. So, why not opt for hosted solutions?
- Higher Scalability
Hosted business solutions are extremely flexible and tend to offer the needed extent of scalability to its users. Imagine that your business has outgrown the capacity offered at the time of purchase. You would now need more space and better connectivity.
With an in-house phone system, scaling is a tough job and again, it requires a certain level of expertise to pull it off. On the other hand, hosted solutions have business offerings where the entrepreneur can scale the resources as and when needed, without having the need to hire an expert or seek advice. In fact, certain business models are designed to promote scalability allowing leaders to continue their operations, without being interrupted.
It is pretty clear by now that a hosted virtual phone system is better than the in-house alternative. Acknowledging the need to optimize business costs without compromising on the quality to service rendered, a hosted solution tends to lead the charts, keeping all apprised. In case, you are still not sure, consult with an expert and see how things turn up for your business.