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SIP Trunking vs Hosted VoIP

Updated on June 21, 2011

Two approaches to VoIP

VoIP is an Internet technology which is extremely flexible. Because of the way VoIP is envisioned, businesses can choose to set up their VoIP networks in the manner which suits their unique needs. There are two basic paradigms to VoIP implementation in the business. The first is setting it up yourself, and the other is outsourcing the infrastructure and maintenance to a third party. As with any two choices, there are advantages and disadvantages to both. While a certain business may find the former approach attractive, another might find it completely untenable. In this article, we look at the two approaches and evaluate what will work for whom.

SIP trunking is actually that part of an IP PBX system which connects it to the outside world of the PSTN system. Without it, a firm can set up its own internal VoIP network for use within its office or for communicating with its branches over the Internet for free. But in order to place a call over the PSTN network, you need to lease out a line which connects to a gateway which does the job for you.

If you opt for an SIP trunk solution, you're going to be setting up your own infrastructure and managing it yourself. This means hiring experienced personnel and allotting them space etc. There are definitely benefits to this approach. You own everything and you can run it the way you want. You also have 100% certainty that you data is not being misused by anyone.

This approach is well suited to larger companies for whom guaranteed privacy is extremely important. They also have the resources and manpower to set up the system, upgrade it and keep it running smoothly.

HD VoIP Service
HD VoIP Service

Hosted VoIP

A hosted VoIP solution on the other hand requires almost no capital infrastructure. You can be up and running in a very short time. Best of all, you don't have to have any technical experience yourself since all the work is outsourced to a third party.

True, there is a certain loss of flexibility since you can't configure the system as you please and have to abide by what the provider allows you. But there are so many of them, that you have complete freedom to choose your service provider according to your needs. A robust business VoIP service can help you realize massive cost savings with little to no headaches.

The only aspect you need to manage yourself is your Internet bandwidth needs so that you can enable fast HD Voice IP PBX functionality for example. Call a VoIP provider to find out what they can do for you!


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