ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Hosted vs On Premise VoIP. Which is right for you?

Updated on December 6, 2013

So your company has decided to make the leap from PSTN to VoIP. Now you must decide whether the organization will go for hosted VoIP services or prefer to have your own equipment on-site. Both solutions have their pros and cons and which one you choose will depend on many factors some of which will be unique to your business environment. There are a few differences between hosted and on premise VoIP:

Hosted vs On Premise VoIP
Hosted vs On Premise VoIP


Hosted VoIP providers usually operate on a subscription basis. You pay for as many users and features as you need, making monthly or annual payments. On-site installation on the other hand, requires an upfront investment which can become quite expensive especially if you want to provide for future growth. However, this option might fit those organizations that already have equipment which is working well.


Many vendors provide plug-and-play solutions which are compatible with most SIP phones. There is little to no administration required to start making calls once you have a subscription plan and IP phones. Installing and maintaining your own equipment means that your IT personnel need to have experience in VoIP deployment. If you do not have the in-house expertise, you may need to hire the required manpower.


Many organizations prefer to have on premise VoIP because it assures them greater control over the network. But this control will not amount to much if your staff does not know how to optimize and implement stringent security protocols for VoIP. Hosted VoIP eliminates this headache since the provider takes care of security on their network.


Enterprises have limited IT resources and few would want to waste theirs on maintaining and upgrading on-premise hardware which could easily be outsourced. The IT department can get bogged down with daily maintenance and delay upgrades which can even result in your network being run on equipment that is no longer supported. Hosted service vendors have a faster upgrade cycle since the cost of upgrading is spread among many customers.


Hosted solutions can scale quickly to accommodate growth in your enterprise and new users can be added quickly with a phone call or an online dashboard. On-site installations usually take longer since new equipment will need to be purchased and configured.

For organizations that have existing equipment and the in house expertise to manage dedicated business VoIP deployments, on premise VoIP will be a better solution. But for many companies, especially small and medium businesses, hosted VoIP is a better option since configuration, security, upgrading etc. is taken care of by experts.


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)