On-site vs Hosted Phone System, should you care?

On-site vs Hosted Phone System, should you care?

Kara Howard, Head of Communicate Portfolio

Kara Howard, Head of Communicate Portfolio

Telecommunications is an area where technology is evolving at an increasing speed creating both more choice and confusion, not least among buyers. Recently phone systems have transitioned through a major technology shift from most businesses having a physical phone system on site to an option where everything can be stored in the Cloud.

Many of you might have already made the decision about the best option for your business. However, if you are currently facing the choice of whether to buy a phone system for your office or let someone else look after it for you through a Cloud based model, then it is important you find out about the pitfalls and balance between these two choices.

Here are some initial questions to get you started.

Is your business model CapEX or OpEX based?

On-site owned phone systems have been the traditional choice for most businesses.  If you’re a CapEX based business then purchasing outright can be a cheaper way to go. If you do own your own system then SIP trunks can help to get the most from the technology and SIP certainly has freed up on-site systems over the last few years.

Alternatively, if you do not want the responsibility of owning your own phone system you could look into a hosted solution where you rent access to the phone system and hand over the responsibility for providing the service to your handsets to another company. This suits an OpEX financial model as the outlay is low.

Do you have a number of multiple sites or are you located at one large location?

Size can determine the most cost-effective system for your business. It could be cheaper to own the system if you have over fifty users working on one site. However, multiple sites with small numbers of people should explore the option of hosted voice. Retailers traditionally have been large proponents of the hosted system technology due to the size of their business. It is best to understand over five years  what the rental would be versus the cost of purchase and maintenance of an on-site system.

Do your business needs change frequently or are you expanding fast?

If flexibility and rapid growth are important to your business then hosted PBX is an option as it is quickly scalable.  One of the other benefits of hosted voice is that the technology refresh is taken care of by the provider so you do not have to upgrade the system.

Is control of your PBX important to you?

If having a control over your PBX is important for you then owning your own system may suit you. Having PBX on-site means that you have access to its features and functions. You also retain control over all data, which can be vital if you deal with highly sensitive information. The addition of SIP trunks also means that you can get the most out of your hardware.

Telecommunications is an important decision for any business and cost, flexibility and control are the most important areas to include in any decision-making. We want to ensure you have the best experience and solution for your business needs.

If you would like to find out more about how to make the decision between on-site or hosted phone systems, contact  your account manager, or contact us.


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