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Hosted vs. On Premise

A Comparison of Hosted vs. On-Premise Telephony 

Comparing the pros and cons of Hosted vs. On-Premise telephony can be difficult, with most information leaning towards each companies' solutions. Since Evotec offer both, we are well placed to provide an unbiased view. 

Hosted Telephony is usually per user per month expenditure, this would be seen as an operational ongoing cost, whereas On-Premise is a single upfront cost followed by monthly support and software assurance costs. 

This means, in the short-term hosted telephony is usually lower cost, especially if you only require the basic features. However, in the long run, On-Premise telephony can be the lower cost path. 

When talking bandwidth, On-Premise telephony can help, simply because your internal calls don't have to travel back and forth from a server. With hosted, you need to consider the cost of any additional bandwidth you will require to deal with additional traffic. 

When it comes to security, a properly managed On-Premise telephony system may or may not be more secure than a hosted system. it will depend on the skillset and the budget of your IT department and the experience of your hosted provider. 

If your communications are mission critical and involve IP, Private and personal information, you need to consider the risk that they could be exposed in a security breach. 

Hosted data is considered to be a more attractive target for an attack than an organisations On-Premise solution. 

One of the advantages of a hosted system is the ability to upscale and downscale the system to suit your needs. So, for any business that is rapidly growing or has staff numbers that are likely to rapidly change, a hosted system can be an excellent choice. 

Manu organisations need more complex telephony features such as Unified Communications, IVR, a complex DECT handset solution or integration with your business apps. A hosted solution may provide these features, but it will add extra costs. Hosted may lack flexibility and features of an On-Premise solution, while the cost of customising a hosted solution may be a drawback. 

The pros and cons of either solution are complex. In the end, the best solution will depend on your unique business circumstances and combined expertise of your in-house IT department, your telephony provider and your hosted service provider. 

The correct solution requires a strong understanding of your business and future growth strategy. Evotec offer free consultations to help you understand the best solution for your business. 

 

Hosted  On-Premise 

- If link goes down all services can be lost

- Solution can fail or cause bad voice quality 

- When system is down, you must wait

- Harder to customise to specific needs

- No control over updates 

- Features can be basic (costly to add) 

- Scalable solution

- May be difficult to integrate with CRM or customer specific applications 

- Never own the hardware

- New features may be charged as extra 

- In some cases, there is no option on internet provider 

- Contract based

- Additional maintenance costs required

- Keeps working offline

- Minimal failure points

- Use of back up phone system 

- Customise no extra charge                

- Update control 

- Feature rich 

- May require work to scale

- Customizable to integrate with CRM, IT and customer specific applications

- Hardware is yours

- No hidden costs after purchase 

- Flexible to use the best internet provider for your business

- Once off payment 

-Maintenance is advised