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Hosted vs. Installed VoIP: Which One is Right for You?

Business needs, growth plans, and in-house expertise will influence your decision

Once you’ve made the decision to replace your legacy phone system with a Voice over IP (VoIP) solution, you must decide whether a hosted service or an on-site installation is better for your small business. Both delivery methods have unique pros and cons, and, like most technologies, one type is not inherently better than the other. Some small businesses will prefer the ease and scalability of a hosted VoIP service, while others will opt for the greater control and customization of a premise-based VoIP phone system.

VoIP has become the new standard in voice communications, in part because it offers a richer set of features than analog phone systems. A range of call management, monitoring, reporting, messaging, conferencing, and security features is fairly standard among both hosted and installed solutions. Your choice between delivery methods will be determined by whether you treat your phone system as a capital expenditure (CapEx) or an operating expenditure (OpEx) as well as your company’s plans for growth and available in-house expertise.

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