Hosted versus Premise Systems

Is your current phone technology obsolete, outdated, not supported or are you just looking to embrace the newest technology? It may be time for you to upgrade your business’ telecommunications system.

Technological advances in the industry have paved the way for faster, more reliable and more efficient phone systems. There really has not been a better time to upgrade! The first step is deciding what kind of system you want for your business.

You have two basic options: Hosted and Premise VoIP. Both have their pros and cons and one may be better suited for a setup than another.

Don’t know the difference? Don’t worry! It isn’t that complicated, and we will walk you through the basics you need to know before you make a decision.

Hosted VoIP

With hosted services, all your voice and multimedia communications are sent, received and stored in a cloud. Because of this, hosted VoIP is often referred to as Cloud VoIP. All equipment is stored and maintained off-site by the provider.

Premise VoIP

As you can probably imagine, premise VoIP is the exact opposite. A more traditional set-up, premise VoIP puts all components of the system within the office location. Internal lines are integrated within a LAN.


Because they come with little equipment to set up and install at your offices, hosted networks carry with them a smaller up-front cost. After installation, costs remain relatively low for hosted systems. Because they are monitored off-site, there is very little to no maintenance cost to keep equipment tip-top. All upgrades and extra features come at the cost to the customer, but you can pick and choose what you want or not. There are also slightly higher monthly costs as you pay the provider for their service.

Premise VoIP will cost you a greater bit to start as you are responsible for purchasing all equipment necessary and installation. Maintenance costs also run higher because that is another area you take on responsibility. On the plus side, monthly service charges are much lower after initial expenses since the equipment is in your care. For all further maintenance and installation, you will have to bring in a technician also.


Adding a new line or expanding new locations with hosted systems can be done easily by simply adding new users to the cloud as needed for seamless integration. There may come at a slightly higher service charge each month. Downsizing your required number of lines is just as easy. Either way, you must ensure your bandwidth is large enough or adequate enough to handle the load since it is all online.

With premise VoIP, expanding locations or adding new lines must be done through purchasing a larger application and IP phones to accommodate the change. Although, like the up-front installation, this will not affect the monthly charges as much. If your size is in flux, you may be forced to eat some costs.

Other Features

Hosted providers have a lot more resources and knowledge at their fingertips when it comes to the tech side of it. This aspect helps you avoid confusion in installation, maintenance and installation of new features. And, although it is conducted over the web, the loss of internet is not catastrophic due to its ability to easily reroute calls.

Although you have to care for the equipment yourself, many services provide equipment and IT training and keep 24-hour troubleshooting. VoIP trunks can also be installed to help keep costs down and help secure calls in the event of internet loss or power outages.

There is a lot that goes into finding the right service for you, so don’t do it alone! VoicePro offers both hosted and premise systems and carries all the up-to-date services your business needs. Call today at (314) 426-8900 or schedule a free consultation online.

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