With the rapid advancement of VoIP (Voice over Internet Protocol) technology, many companies today face an important question:
The first step you should consider when building a modern VoIP communication system for your company or organization is:
Should we purchase and host our own on-premise VoIP system, or should we subscribe to a cloud-based VoIP service?
If you’re not deeply familiar with VoIP systems, choosing between the two can seem confusing. However, consulting with a VoIP technology expert can make the decision much easier and simpler without complications.
Nevertheless, it’s better to have some basic understanding of VoIP technology before consulting experts.
After reading this article, you will have a clear picture of which VoIP solution best fits your business environment.
Before reading this article, you may want to review our previous article titled VoIP on Cloud Computing to learn how cloud-based communication systems work and their key advantages.
1. Cloud-Hosted VoIP Systems
A cloud-hosted VoIP service is an ideal choice for small businesses, startups, and organizations with limited budgets. That’s because everything is handled by a third-party provider.
One of the main advantages of hosting is that there’s no need for expensive equipment or a specialized technical team. This solution is suitable for small companies with limited budgets.
Key Benefits of Cloud VoIP:
- Low setup costs: You don’t need to buy equipment, servers, or pay for licenses, etc.
- No need for an in-house IT team: The VoIP hosting provider is responsible for everything, saving time and money.
- Management flexibility: Easy system control, flexible expansion or downsizing, and easy management from anywhere.
2. On-Premise VoIP Systems
An on-premise VoIP system means you will build your communication system from A to Z, starting with purchasing servers, equipment, licenses, and phones, taking backups, and ending with providing a highly skilled team to manage the entire system.An on-premise VoIP system is more suitable for medium and large enterprises, which often require specific settings and features customized to fit the organization.
Key Benefits of On-Premise VoIP:
Complete Control and Flexibility:
Since the entire communication system is within your company, this means you have complete control over the system with the ability to install it or integrate it with other systems in your company, such as integrating it with a CRM (Customer Relationship Management) system, for example.
Dedicated Technical Team:
Since all equipment and the entire system are in your company, it’s preferable to have a dedicated team to manage this system and solve recurring problems.
Higher Setup Costs with Lower Monthly Expenses:
Despite the relatively high cost of setup requirements or building the system (phones, servers, switches), it’s a good long-term investment. Monthly expenses will decrease, allowing you to save on operational costs.
What’s Next?
Now that we’ve reviewed some differences between cloud-hosted and on-premise systems, whether you’ve made a decision or are still looking for the best solution for your company, you should consult with a communication solutions expert and service provider to discuss your ideas and needs to determine the best solution that fits your company’s nature and business.
XonTel is one of the leading VoIP service providers and a major developer of VoIP technology. Whether you’ve decided to build your system on-premise or on the cloud, you can request consultation and benefit from their expertise in this field.
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