Hosted VoIP or Local VoIP?

Good grief! You've decided to invest in a shiny, new VoIP phone system for your business and now you face yet another decision on whether to plum for a system hosted off-site or a locally installed rack-mounted unit.

There are benefits for both systems, neither is exclusively better than the other, so here is our overview of each to help you decide which is best* for you.

Hosted VoIP

A hosted VoIP service provides telephony with no requirement for a ‘tin box’ on site. The phone system is part of the service provider’s servers completely web-based.

Full configuration of your services is completed on line and you will pay a monthly ‘rental’ for each of the services such as telephone numbers (which is usually non-portable in the event of choosing another supplier), voicemail, caller ID etc.

Benefits of a hosted IP system should be a low initial capex and static monthly payment with zero maintenance. Handsets are procured as required and are covered by standard consumer right warranties.

Set up is normally a simple procedure for any tech-minded person. Calls to other users connected to the same provider should be FOC and a clear tariff on ‘break-out’ calls should be available at the time of order.

BEST FOR: Start-ups, short-lease offices, low staff numbers.

VoIP Telephone System

A VoIP enabled telephone system is located on site, usually rack-mounted with RJ45 oultet positions for simple patching to customer’s cat5e/cat6 cable infrastructure.

The system is installed, configured, maintained and supported by an authorised supplier. The system is compatible with ISDN or SIP trunks (VoIP trunk lines delivered down a dedicated ADSL circuit) using locally connected digital handsets internally or IP handsets for remote use.

Capex includes buying the system and the handsets, all are proprietary and fully maintained so are covered by maintenance and advanced replacements in the event of any problems. Monthly charges are limited to line rental and network services plus call charges. All services are negotiable and portable.

BEST FOR: SMEs with 10+ users, flexible end point requirements, large area offices.

So there we are, a brief outline to help you along the way toward your decision. Remember to contact us response@extel.co.uk for free impartial advice.

*Extel Communications do not offer a hosted VoIP service.