Deciding what phone system is right for you can be a real headache! But don’t worry! Let’s discuss the pros and cons of onsite v hosted phone systems. Firstly, let’s find out what each is.

What is an onsite phone system?

Essentially, an onsite phone system is a traditional phone. This means the systems reside at the locations. For example, in a phone closet or computer equipment room. Calls can either go through the traditional phone company or VoIP using SIP trunking.

What is a hosted phone system?

Simply put, a hosted or VoIP system is an internet phone system. The desk sets are plugged into a router. So, the calls, signalling and features are handled through a server at the service provider’s location. 

What’s the difference?

So, you know what both systems are but what’s the difference? And most importantly, what’s best for my business? Let’s have a look at the pros and cons and both systems.

Benefits of an onsite system

• Greater user control – you can create, adjust and delete users with ease
• New features can be added without license fees
• Current carrier doesn’t need to be changed
• VoIP trunks can be added to save on calling costs
• Sever ownership reduces expenses over time
• No DIY time for the customer
• Professional training of staff on new VoIP system is handled by the provider
• With SIP trunking, loss of internet, for example, can reduce the effect on operations because calls can be sent to another number or a mobile phone.

Benefits of a hosted system

• Providers have more resources than users, so new feature sets are possible
• New feature installation is handled by the provider to avoid confusion
• Picking and cancelling virtual numbers is easy and fast
• Moving a phone system is easy – IP phone is plugged into a broadband connection.
• Hosted provides edge border controllers or various other kinds of NAT software to help navigate routers
• Patches and upgrades of VoIP are handled by the provider
• Loss of Internet or catastrophic event has no effect on operations because calls can be sent to voicemail or a mobile phone

Negatives of an onsite system

• Onsite VoIP needs a provider who can manage it properly
• Expansions may result in complicated projects depending upon the provider
• Onsite VoIP manufacturer could go out of business, leaving problems with managing root problems
• A technician may need to be called for upgrades and patches on software (and costs can be incurred)
• Loss of power or system failure will result in callers not being able to get through, which stops business operations unless you have a SIP provider

Negatives of a hosted system

• Connections and voice quality are a result of Internet connection
• Loss of Internet results in loss of phone service (settings can be adjusted so that it goes to voicemail or routed to a mobile phone)
• The flexibility of the system is limited
• Customization of features may be slow or unavailable depending on the provider
• Fees can be increased and cancellation fees can be charged
• Stability of provider may vary within operations and finance

Only by weighing up the positives and negatives of both systems should you decide which is right for you and your business.

Still having trouble?

If you’re still struggling to decide, don’t hesitate to get in touch!