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  • BTI Communications Group

Hosted Vs On-Premise Phones

If you have been looking for business phone options for your company chances are that you are going stumble between two options, cloud-hosted solutions, and on-premise solutions. Both types of solutions do their job but in order to get the max out of your communication solution, you need to identify the pros and cons of each option as well as the current and future needs that your business may have.

The Difference Between On-Premise vs. Hosted Solutions

hosted cloud vs on-premise drawing

On-Premise Solutions

An On-Premise solution (also known as a PBX system) is an option that your organization can own on rent. When choosing an on-premise solution, you need to take into consideration that you will need to invest in hardware, an on-site server, maintenance, and upkeep.

Hosted Solutions

Hosted phone systems are also known as virtual systems, VoIP phones, Cloud Hosted systems, or Cloud Based systems. The main advantage of having cloud-based solutions is that in comparison with on-premise solutions, hosted solutions are easier and cheaper to maintain since all you have on-site would be the phones themselves and a network switch. All the other hardware needed for your hosted solution to work would be stored in your provider’s data center.

Hosted vs. On-Premise Solutions, Which One Should I Get?

Pros of Getting an On-Premise System

  • Improved ROI

If you have a larger company, having an on-premise solution might be the right choice for your business. You will have to pay for all your hardware upfront, but once you make the investment, your phone system will last for a very long time.

  • Hands-on approach.

If you prefer more of a hands-on approach and you prefer having all of your sensitive data close and at hand, an on-premise solution may be the best option for you.

Cons of Getting an On-Premise System

  • Limited Lines

On-premise phones lack the flexibility that hosted solutions have. On-site business communications offer a limited number of lines that can be used. If you are looking to scale your business in the future, having an on-site hosted solution will make this complicated.

  • Natural Disasters the Enemy of On-Premise Solutions

If you leave in an area where natural disasters are common having an on-site solution may be a problem. A natural disaster can destroy all your sensitive data and make you lose all your investment in a blink of an eye.

Pros of Having a Hosted Solution

  • Cost Effective Solution

Having a cloud-based solution allows you to reduce costs because you don’t have to adapt a space for your server, hardware, and other required equipment. Additionally, your initial investment is much lower for on cloud solution, making it more cost-effective for small and medium-sized businesses.

  • Scalable

Hosted solutions allow you to have an unlimited number of lines because it works with an internet connection. If your organization has remote workers, has multiple sites, or is planning to scale massively in the future, hosted solutions are your go-to option.

  • Simplified Systems Management

If you don’t want to worry about the technical details or management having a cloud-based solution is what you are looking for. If you have any problems simply call your hosting company and they will solve your communication problems.

Cons of Having a Hosted Solution

  • You Need a Good Internet Connection

If your internet goes down, your phone systems go down as well. Luckily, hosting providers like BTI offers a backup solution in case your power goes down or you lose your internet connection.

Hosted or On-Premise? What Should I Choose?

Before you choose between hosted or on-premise solutions you need to take into consideration various aspects.

  • Budget

Keep in mind that VoIP systems are much cheaper than On-premise systems in the short term. Even though there is a monthly subscription that you’ll have to pay, you won’t need to worry about maintaining your solutions because your provider will take care of this. Here at BTI, we have a vendor financing program that offers you incredible benefits! If you are planning your budget for 2023, check out our vendor financing program and discover all its benefits!

  • Are You Planning an Expansion?

As you already know, hosted solutions are far more scalable than on-premise solutions so if you are planning to open a call center, your company has multiple sites, or some of your co-workers or employees work remotely, hosted solutions will be the better option.

  • What’s Your Approach?

If you prefer a DIY methodology and you like having your data at hand, the on-premise solution is for you. On the other hand, if you prefer having a team of experts managing all your communications systems the VoIP-hosted solution is the right choice.

Here at BTI, we have more than 35 years of experience in the field of communications, IT, and security, and we have the expertise and reliability that your business needs! Remember, our solutions are tailored to your specific business needs so you can get the most out of your budget! If you would like to know more about hosted and on-premise solutions, please, contact us now or schedule a free consultation!


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