A lot of people believe that IP and Hosted are the same thing and whilst they both use IP technology; the main difference is that a Hosted Phone System is a system you rent and the IP Phone system is one which you purchase and you host it yourself.
What is a Hosted Phone system?
It is a cloud-based phone system which you use your internet connection (IP technology) to connect to the it but you are renting the system.
Highlights
- IP and Hosted Phone Systems use the same technology.
- Hosted Phone Systems are cloud-based but you rent the system rather than purchasing your own system.
- IP Phone Systems are connected via Ethernet/LAN/WAN connection and you own the phone system.
- When you choose an IP Phone System you choose where to host it.
Benefits of a Hosted Phone System
- Flexibility even if you are on the road (you can make calls from your mobile using your phone system) or if you need to move office; your phone system will simply plug-in.
- Scalability as adding and removing users is simple.
- Variety of Features such as video conferencing, call routing, voicemail recording sent to email etc.
- Automatic upgrades are distributed to all users.
- Phone system Management - you have access to change any settings such as opening times or we can do that for you.
- Business continuity - your calls can be instantly rerouted in the event of an outage – meaning you won’t be missing out on business.
- Minimal set-up costs - no hardware except if you want a phone handset.
- Low monthly cost per user.
- No physical hardware to host on-site or remotely.
- Speedy installation as it’s unlikely that you’ll need physical cabling because most places have internet connectivity.
- Maintenance is included.
Limitations of a Hosted Phone System
- There is only one caveat; it is IP technology which means you need a reliable internet connection since the phone system runs across the internet; the connection determines the voice quality. A good connection is paramount.
What is an IP Phone System?
You purchase the IP Phone System, host it in a location of your choice, connect to it using IP technology (Ethernet/ Local Area Network (LAN) / Wide Area Network (WAN.)
Benefits of an IP Phone System
- You own the system.
- You can choose where to host it, whether that be on your own server/ on-premise/ hosted in your own private cloud via a data centre; it gives you ownership on the maintenance of the system.
- No long-term contracts (unless you purchase using finance.)
- Flexibility even if you working remotely because you can make calls from your mobile using your phone system.
- Scalability as adding and removing users is simple.
- Variety of Features such as video conferencing, call routing, voicemail recording sent to email etc.
- Phone system Management is in your hands as you have access to change any settings such as opening times.
Limitations of an IP Phone System
- There will be up-front costs to purchase however, it can be financed or leased.
- You will need to choose somewhere to host it, whether it be on-premise or hosted externally which may incur additional costs.
- Maintenance will be your responsibility unless you outsource this aspect or it can be included in the lease.
- Your voice quality is determined by internet connection so again, you need to have a strong, reliable internet connection.
- Any upgrades are at your expense.
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