The Difference Between Hosted Telephony And Cloud Phone Systems

Office upgrades to my office have been painful over the years. My wife just had a large telephony upgrade at her location a few weeks ago, which didn’t go well. However, the great news is that the phone system is all cloud-based now and runs much more smoothly! I’m a big fan of Hosted Telephony, so here is a quick article on that and Cloud Phone Systems.

Purchasing a Voice over IP (VoIP) is quite a challenging task. There is one important decision to be made in this regard. You should determine which is better for your business: A hosted telephony system or a cloud phone system? Both these phone systems operate via the internet. But the former is a premises-based solution where the hardware appliance is kept in your server closet. The latter connects through your internet connection to a service provider that maintains the equipment at a cloud data center on the net. This article highlights important differences between a hosted telephony and cloud phone system.

The first thing is to differentiate between the features offered by these two systems. Most of the hosted PBX service providers do not offer important features similar to a cloud phone system. If critical business features such as conferencing, IVRs and queues cost extra or missing, the business owner will not benefit with such a phone system. The majority of the cloud phone systems come with all the aforementioned important features. This is why business owners prefer such a system for the future of their business.

Telecoms company Brighter Bills says that “Cloud-based phone systems come with a low upfront cost”. This system typically charges the user a monthly fee based on their usage. Using hosted telephony systems have a higher upfront cost for the on-site server and other equipment involved in it. But they don’t have a recurring monthly fee. These systems tend to be more attractive for businesses that have a lesser number of employees. But larger businesses with over 100 or more employees prefer to go with a cloud-based phone system due to the numerous benefits of the system. It is best that you speak with an experienced VoIP Specialist before choosing the best system for your business.

The next important factor to consider is the total cost of ownership (TCO). A cloud-based phone system comes with a much lower total cost of ownership. This is because of the saving in the IT department due to the hosted provider taking care of maintenance and server configuration. This can be quite an advantage for your business depending on the size and structure of your business.

You also need to consider the growth of your business in the coming years. If you plan for a rapid growth in your business during the coming years, it is best that you go for a cloud-based phone system instead of a hosted telephony system. If you go for a premises-based solution, you may have to upgrade/replace the appliances once your business grows. When you choose a cloud-based system, you have nothing to worry about upgrading or replacing the server configurations. This is why so many large businesses go for a cloud based phone system these days.

In summary, the right phone system is very important for the success of your business. You need to choose the correct system with utmost care. The aforementioned article highlights important factors to consider in this regard. This has been a small summary of VoIP systmes, but if you want to go more in-depth, I highly recommend this video with over an hour of explanation:



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