Purchasing a Voice over IP (VoIP) phone system can be challenging. One important decision that must be made is to determine which is best for your business: a premises-based solution (in which the hardware is kept on-site), or a hosted PBX solution (where your phones connect through your Internet connection to a provider that maintains the equipment at an off-site cloud data center). Educating yourself on the benefits and potential challenges that come with using either a hosted or premises-based phone system can help you make a good decision to ensure your business needs are fulfilled and you get the greatest value for your investment.

Features and Benefits

The first and most important aspect to consider is which features are offered. Several hosted PBX providers don’t offer the same features in their hosted product as they do for their premises-based solution. If critical features like queues, IVRs and conferencing are missing, or there is extra cost involved, then the product may not be a viable solution. TrueTel’ hosted PBX offering comes with all UC features included.

Existing Infrastructure

Consider your current technology infrastructure. Are you using a legacy system to connect your phones to the Public Switched Telephone Network? Legacy connections like Time Division Multiplexing (TDM) can be expensive. You could see a cost savings in switching to a VoIP trunk or by using a hosted VoIP provider. On the other hand, if you like to keep your existing TDM or POTS lines, then a premises-based solution with interface cards may be the best way to go.

Upfront Cost

Hosted VoIP solutions have a low upfront cost and are typically charged as a monthly fee per user. Using VoIP with an on-site server has a higher cost upfront, but then there are no recurring monthly fees. Above a certain threshold it becomes more cost effective to purchase your own equipment than to pay a monthly fee. Hosted VoIP tends to be the most attractive for businesses with 5 to 15 employees. However, many large businesses with 100 or more users often choose a hosted phone system due to several other advantages. It is always best to consult with a VoIP specialist who can help you weigh the unique aspects of your business to help you decide.

Cost of Ownership

A hosted PBX can often have a very low total cost of ownership due to the savings in IT personnel and because your hosted provider takes care of server configuration and maintenance. Depending on the size and structure of your business this can be a huge advantage of hosted VoIP over premises-based VoIP.

Scalability

Finally, consider how your business may grow in the coming year(s). If there is potential for rapid growth you will need to consider how this will impact your purchase. If going with a premises-based solution makes more sense, you will likely want to purchase a larger system than is initially needed to accommodate growth. With hosted VoIP, new users can be added to the phone system as needed. A unique advantage of the TrueTel solution is the fact that the same software is running on both the cloud version and the on-site, premises-based version. Users at the headquarters office can be on a dedicated server running on site, while users at the remote office have their phones connected to the cloud. By peering the cloud instance to the on-site server, users will have a uniform experience regardless of which technology they are connected to.

Summary

Purchasing the correct phone system is important for the success of your business. There are many factors that come into play when deciding between a hosted and premises-based VoIP solution. Each has its strengths and weaknesses. To assist in making the best decision, call 678-213-4100 and speak with a TrueTel VoIP specialist. We can provide you with additional information, tips, and advice regarding your communications needs to ensure your total satisfaction with the best phone system for your business needs.

For more information on pricing, features and benefits, reach out to us today!