Considering Hosted, on-Premises or Managed VoIP Business Solutions

VoIP solutions are becoming increasingly attractive to business and home use due to lower system costs and greater manageability. Because of this, there a decisions to be made as to how to properly implement a VoIP strategy. The main objective, of course, is to meet the needs of business communications while balancing costs and system complexity. Businesses are constantly assessing growth potential, production rates and the need for excellent communication. These will factor greatly into any decisions regarding the adoption of managed, hosted or on-premises VoIP solutions. Here, we’ll take a look at business VoIP system options.

Managed VoIP Services

Managed VoIP involves obtaining services from a third-party provider. This includes using the vendor’s operations facility and technicians along with all VoIP equipment and software. The advantage here is that there are no problematic issues, extra costs or risks associated with an in-house VoIP solution. Managed VoIP packages will usually offer the complete design, maintenance and management of the new IP-phone system as well as the existing network telephony solutions.

This outsourced VoIP management solution will include network communication surveillance. Response times and resolution parameters will be contractually agreed upon and regular reports will be provided. Managed VoIP service prices can either be on a fixed rate or based on usage depending on business needs.

Managed VoIP services are ideal for smaller organizations that wish to take advantage of VoIP technology. A managed service can provide VoIP advantages without the company having to incur the expense of setting up their own system. Additional advantages can include: 24/7 access to technical support, fast VoIP migration time frame, access to the latest VoIP technology, operating expenses that are predictable and service option flexibility. Disadvantages can include: fees that are paid may, over time, ultimately exceed the cost of purchased in-house equipment. Additionally, system upgrade time-frames may take longer, than for in-house equipment.

Hosted VoIP Services

VoIP hosted services will utilize a provider’s PBX equipment. That equipment will be used for data and voice traffic routing. Voice traffic will be routed over the public switched telephone network (PSTN) to the PBX system that is being hosted. Hosted VoIP services are designed for small to medium size companies that require feature-rich, powerful VoIP systems without a big price tag.

Advantages of hosted VoIP services can include: adaptability when it comes to adding VoIP features, the ability manage capacity, remote troubleshooting, integration with legacy systems, no equipment purchase and per-seat licenses that limit expenditures. The disadvantages are the same as for managed VoIP Services.

On-Premise VoIP Systems

As the name implies, an on-premises VoIP system consists of equipment (cables, routers, servers, etc.) that needs to be purchased, installed and maintained by the business. All maintenance is done by the businesses’ IT technical staff.

This type of system is more suited for larger businesses and major corporations. These larger enterprises typically require greater control over their systems for a high level of unique customization. The advantages of this type of VoIP solution can include:

• Total ownership that translates into long-term cost benefits.
• Immediate upgrades performed internally.
• Customizable admin. options.
• Elimination of expensive service contracts.
• IT department becomes very familiar with all aspects of the system.
• The company can specify every aspect of the VoIP system in accordance with the company’s needs.

Disadvantages can include:

• Up-front cost requirements are steep for equipment purchases, installations, software and training.
• Maintenance and other operation expenses are on-going.
• The need for a skilled and trained in-house IT department.
• An entire VoIP solution needs to be purchased regardless of whether or not all aspects of the system are utilized.

Whether an organization chooses hosted, managed or an on-premises VoIP solution will depend on the company’s needs and budget. The rapid onset of VoIP solutions for the replacement of older, outdated phone communications has already begun. Weighing the pros and cons of different VoIP approaches will soon be on the minds of just about every business that requires phone communications.