By admin Published on: August 23, 2017 Updated on: IP PBX Software
HoduPBX - An ideal multi-tenant enterprise phone system for UCaaS, CPaaS and MSPs

Should You Get a Hosted or Premise-Based Voice Solution

With the emerging VoIP trends, whether to choose a premise-based voice solution or a hosted-based voice solution (the most heard these days) is a big question. What happens is, sometimes most companies choose any of them and after a certain period of time, they find the solution to be the worst choice for their enterprise. And, finally, at last, the enterprise feels that they have been cheated upon by their VoIP solution provider and the provider loses its business and highly valued customer. And, sometimes, the solution provider is slightly incapable of serving the right guidance to their customers.

Why You Sould Use IP PBX Solutions?

Hence, it becomes extremely important for an organization to understand which voice solution is the best fit for their business. So, here we go.

Benefits of Using Hosted-Based Voice Solution

Let’s have a look at the benefits most businesses can have by choosing hosted-based voice solutions:

●    No Equipment Cost

Businesses differ from each and other and so do their requirements. There are various payment packages available for a hosted-based voice solution from monthly to yearly charges. The businesses that prefer to choose a hosted-based voice solution on a monthly basis, does not require to purchase the IP PBX Equipment and can utilize the phone and voice calls through this solution.

●    Best for Businesses with Powerful Internet Connectivity

Hosted-based solutions require powerful, robust and secured internet connection. So, either the customers have requirements of very less handsets, say 10 or less, or they hardly lose internet connection, then it is the best fit for those businesses.

●    Easy System Upgrades

Hosted-based voice solutions come with software and hardware installation in which the system gets upgraded and maintained whenever there’s an update from the server. So, the businesses do not need to worry about any feature updates or bug fixes.

●    No Additional Cost to System Maintenance

As discussed above, that the system upgrades and maintenance is easy with hosted-based voice solution because there’s no special installation required as it gets updated automatically. And, for system maintenance, it’s cost is included in the package the enterprise has selected. So, no extra or hidden cost is associated with the hosted-based voice solution.

Benefits of Using Premise-Based Voice Solution

Let’s now discuss how it is beneficial to choose premise-based voice solutions:

●    Lesser Space Compared to PSTN

With the traditional telephone system or PSTN, it takes a huge amount of wall space within an organization to cover up wires, modules, etc. for installation purpose. But, with premise-based voice solution, only one thing is required to get it installed, that is one Rackmount unit which is said to be 1 RMU.

●    Extremely Low Electrical Power

Like we discussed in the earlier point, only 1 RMU space is required to install premise-based voice solution. This also means that it requires extremely low electrical power to get it going. Also, when we talk about traditional phone systems, due to its modules and wires, it consumes more power. Here, we only have 1 RMU and no other elements which help to reduce the power to a great extent.

●    Is Independent of the Internet

Well, if we can say that hosted PBX needs continuous Internet access, then with premise-based, Internet is not a compulsion. This means that whenever there’s an Internet outage, the calls are routed through the LAN using auto failover feature. So, calling does not get interrupted due to the loss of internet connectivity.

●    Lower Average Monthly Telecom Costs

With analog telecommunication lines, we need to buy the minimum fixed number of call paths irrespective of our requirements. But, Premise-Based Voice Solution uses SIP Trunking, which allows us to only pay for the number of call paths that are actually required by us. This means that the enterprises can save up to 50% of average monthly telecommunication costs.


So, here we have discussed the difference between hosted- and premise-based voice solutions. It is always advisable for a small to medium sized enterprises to go for hosted-based solution as when they have their Internet down, they don’t suffer from a huge communication gap. Also, for businesses with very critical and constant communication requirements, it is recommended to go for premise-based voice solution.

Go for a Live Demo for both from HoduSoft and get your requirements set.


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