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Should Your Business Choose Hosted VoIP or On-Premise VoIP?

August 17, 2016

Hosted VoIPIf your business has decided to switch from a traditional landline phone system to an advanced VoIP phone system – then you certainly are not alone! In fact, back in 2010 INC Magazine proclaimed that VoIP as the “industry of the decade”, and so far the prediction has proved to be 100% accurate, with hundreds of implementations taking place across the country on a daily basis. 

However, before your business can start reaping the rewards of a VoIP phone system, you need to choose between a hosted or on-premise system. To help you make this important decision, we take a look at some key factors below that will matter to your business now and into the future.

Cost Savings

When it comes to operational savings, hosted VoIP is much more cost effective than on-premise VoIP. This is because a hosted VoIP system is 100% cloud-based. There is no costly hardware to purchase, install or maintain. Indeed, an on-premise system can easily cost more than five-figures and take weeks to install. 


Scaling in either direction – up or down – is, once again, much more cost effective with a hosted VoIP system vs. an on-premise system. This is because with the former, adding and removing users is a simple and inexpensive as adding licenses or letting them expire (and possibly purchasing affordable certified VoIP phones as desired). But with on-premise VoIP, scaling requires reconfiguration and reprogramming. This is time consuming and requires expertise that most businesses do not have in-house.


With hosted VoIP, in-house IT teams do not have to provide any additional support – because all support tickets and end user issues are managed by the VoIP solutions provider. However, with an on-premise system, businesses will have to train their IT staff, recruit additional staff with VoIP expertise, or purchase costly service agreements.

Upgrades & Innovations

VoIP technology is constantly evolving. With a hosted VoIP system, businesses automatically access these upgrades and innovations. However, with an on-premise VoIP system, businesses have to manually take care of any system improvements, including installing security patches.

Disaster Recovery 

Disaster recovery is a major concern for all businesses. Hosted VoIP systems have built-in disaster recovery features, including the use of a geographically dispersed cloud infrastructure that allows the system to remain operational even in the event of a local power outage. However, on-premise systems cannot offer the same level of protection or disaster recovery.

The Bottom Line

For most businesses – and virtually all small and mid-sized businesses that do not have large in-house technical teams, and do not want to spend tens of thousands of dollars on installation and maintenance – the clear choice and hands-down winner in this debate is hosted VoIP.
To learn more, contact the Votacall team today. We specialize in helping businesses across all sectors reap the game-changing advantages of a hosted VoIP system. Our proven expertise is your distinct advantage! 

For more information about hosted VoIP phone systems and the truth behind common myths, download our FREE eBook: 

Debunking Hosted VoIP Myths eBook download

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