What is the difference between hosted and on premise VoIP?

Hosted VoIP and on premise VoIP are two different ways to handle the telephone system. Our latest blog

VoIP is increasing its value as it comes closer to 2020. Why? Because they are said to be the future of telephone systems which you can read more about on our “How are VoIP phones the future of business phone systems?”

There are two ways of managed VoIP which are hosted and on premise and they can affect a business differently. Both are useful to some organizations and useful to others which you could decide after this blog. If you’re still unsure then there’s always our contact button for you to use!

Hosted VoIP


When VoIP is hosted it means that the hardware and the Private Branch Exchange (PBX) is hosted off your businesses premises and is hosted elsewhere. The only equipment that is onsite is your telephones. When your phone system is hosted it means that it is typically hosted from a data center which can provide you with both advantages and disadvantages. 

On Premise VoIP


When a VoIP system is on premise, this means your PBX is physically at your organization. It will be on a machine or your server which you will be able to access directly to control your VoIP system. The main different between on premise and hosted is that hosted is done via the Cloud which is becoming

more and more reliant to businesses. If you want to implement the Cloud in to your business then hosted VoIP is more than likely the better option for you. 

Pros and Cons of Hosted VoIP

  • Downtime is minimal
  • Don’t need to pay for hardware
  • Cheaper 
  • Monthly fee
  • Hosted providers are unlikely to change their services for a single user
  • Connection issues (Internet providers have improved the last 2 years)
  • Providers stability – operational and financial

Pros and Cons of On Premise VoIP

  • Have all the hardware for your system 
  • Full control 
  • Makes troubleshooting easier 
  • You own the equipment
  • When the Internet goes down, so do all the phones
  • Costs more for a disaster recovery
  • Updates could require knowledgeable technicians
  • Problems with the phone system could cause problems for your business

Do you know which is better for your business?

VoIP is becoming more popular within organizations and as old phone systems will become outdated by 2020, organizations are implemented the future of telephone systems today. 

If you would like to know whether hosted or on premise VoIP is suited to your business, fill in your details below!


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