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Onsite vs Hosted Internet Phone Systems

VOIP Phone Systems

We’ve Come a Long Way…

When the telephone was pioneered in the late 1800’s it seemed like a miracle. The thought of connecting with people over great distances and hearing their voices as if they were in the same room seemed impossible. The invention opened the world to make it feel a little smaller and united. Evolving from switchboards to cell phones seemed almost impossible, and now communications have evolved even further. Internet and cloud-based systems make instant information and clear, rapid connection even more possible. It is just a click away!

We Hear You Loud and Clear!

NEC is a multinational IT company whose origins date back to 1898, and it has been in the forefront of technology ever since. Knowing you are choosing technology from a reputable and trail blazing communications server is only half of the battle. Deciding the right service for your company is where we come in! NEC makes affordable Unified Communications for all business sizes. The key is knowing how to decide which technology is relevant for your business based on cost savings, improved customer service and efficiency.

There is an immense array of telecommunications solutions available which often makes it complicated to choose economical and practical solutions. Let us get started with the essentials.

Making Your Choice: Onsite vs. Hosted

Onsite or PBX (private branch exchange):

This is a system that uses hardware (i.e., computer equipment, desk sets, etc.) that reside at your office. You can have an IP-PBX where the hardware remains at your office, but the IP routing is through current technology. Calls go through a voice-over-internet phone (VoIP) or traditional phone company.   The IP phone communicates to the IP-PBX via a Local Area Network (LAN). Onsite systems have more upfront costs and are ideal for companies who what full ownership of their telephone system.

Onsite PBX Pros and Cons

  • Onsite offers control to add, delete and create users as needed.
  • No licensing fees to add sets.
  • Lower monthly cost after expenses is covered.
  • Higher initial cost and set-up cost and potential higher maintenance costs.
  • Ability to SIP trunk (VoIP technology) to get lower cost calls.
  • Current carrier does not have to be changed.
  • VoIP trunks can be added to save on calling costs.
  • Server ownership reduces expenses over time.
  • Expansions may be complicated depending upon the provider.
  • Loss of internet has a reduced effect on operations because calls can be sent to another number or a mobile phone.


Hosted PBX or Hosted VoIP:

Many people know this as internet phone systems. Hosted systems have a provider that is also known as an Internet phone system, is one where the provider houses the IP-PBX as well as provides the service to the phone system. Hardware (desk sets) plug into a router and the calls are handled through the IP-PBX server at the provider’s location. Hosted systems minimize upfront costs, and the cost is spread over monthly payments which is perfect for businesses that do not have the startup capital.

There are fundamental advantages and disadvantages to both systems, so it is important to weigh the options.

Hosted PBX Pros and Cons

  • Lower initial equipment cost and set-up cost.
  • Low monthly service cost.
  • Easy to add extra lines.
  • Upgrades and new features are included.
  • Moving a phone system is easy – IP phone is plugged into a broadband connection.
  • Picking and canceling virtual numbers is fast and easy.
  • Extended features, like conferencing, may come with additional costs.
  • Loss of Internet results in loss of phone service (settings can be adjusted so that it goes to voice mail or routed to a cellphone).
  • Flexibility of system is limited.
  • Connections and voice quality are a result of Internet connection.
  • Fees can be increased, and cancellation fees can be charged.
  • Technician may need to be called for upgrades and patches on software (and costs can be incurred).

We know this is a lot of information and making the right decision for your business can seem daunting. Tele-Plus Corporation is here to assist you to find what fits your type and size business. Call or contact us today to get started