With VoIP, businesses receive an advanced set of call management tools and features to improve business operations, efficiency and productivity. In addition, businesses can make long distance calls at a fraction of the usual cost and call other same-network VoIP users for free. VoIP, which requires an onsite or hosted IP-PBX, is suited for businesses of all sizes from small to large corporate entities. An IP-PBX is a switching system that interconnects internal VoIP with the public telephony system for communications between VoIP or traditional lines. The advantages of VoIP are clear (see here and here) so the next question becomes cloud-based (hosted) IP-PBX or an on-premise IP-PBX.
With a hosted, cloud-based platform, the VoIP IP-PBX is vendor-operated and managed. The on-premise IP-PBX server is physically onsite at your location and managed by you. Hosted systems represent a monthly operating expense while on-premise systems represent an up front, capital expense and ongoing resources to upkeep and maintain. Both have advantages depending on your resources and future needs.
Hosted IP-PBX advantages
- Minimal capital investment
- Less complexity, less in-house technical expertise
- Scalability – capacity can be easily increased or decreased
- No expensive installation fees
- Support, maintenance and upgrades provided
- Unified phone system for companies with multiple locations
- No reliance on a single site – ensures business continuity/disaster recovery
- Quick and easy implementation
- Minimal hardware and storage requirements
On-site IP-PBX advantages
- Lower operational expenditure
- Cost of ownership reduces over time
- No monthly managed service payments
- More customization
- More in-house control
As technology has evolved, hosted VoIP limitations have decreased and prices have become more attractive. Sometimes the best VoIP solution for your business is a hybrid, utilizing a combination of in house and hosted applications. For example, if you run web conferences, often it can make sense to run conferencing through the cloud, while maintaining an IP-PBX on site.
Often large corporations like the control of an on-premise IP-PBX, and they have the resources and expertise to maintain the system. They also like the long-term economics and can afford a major capital expense. But, if you need resources to remain primarily focused on your core business, a cloud-based VoIP solution may be the better route.
Some questions to ask yourself: Are you in the business of hosting servers? Do you have certified IT staff to manage your phone system? Do you want out of the phone business? Would you prefer to focus more on your business?
An ATC representative can help you determine which of the two – hosted VoIP or on premise – best fit your current and future business requirements.
