Phone System: IP vs Hosted

Contact us

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.

So, IP or Hosted?

It’s about what is important for your business and your budget costs.

IP Phone Systems means that you secure your own phone system and no “per seat” cost but there are responsibilities required to maintain it whereas a hosted phone system is a per seat cost but no responsibility in maintaining it.
Both are viable options.
Share this post...

If you’d like help figuring out which would be the best option for you, call Rob/Shiv on 0330 222 0330

Contact us