Cloud/Hosted VoIP Phone Systems vs. Premise Based VoIP Phone Systems

Cloud/Hosted VoIP systems have become a preferred choice for many that are looking for a new UC solution for their offices. And on the surface it’s easy to see why. In most cases there is a small initial investment, one bill for equipment and service, the entire solution managed entirely by your hosted provider, latest technology, etc. However there are advantages and disadvantages to both cloud/hosted VoIP as well as premise based VoIP designs that should be considered before investing in a new solution for your office. Office Telesystems has taken this into consideration, offering both system designs. Here are examples of cloud and premise based VoIP systems:

NetFortris Fonality Cloud VoIP

Avaya IP Office

Advantages and Disadvantages to Premise Based and Hosted Solutions

Pros and Cons for Premise Based (server on site) Solutions (CapEx or OpEx Investment Options)


Favorable total cost of ownership long term for just a few sites
Security of network, control of your own equipment
Comparable feature set to cloud VoIP
More features on desk sets
Higher level of equipment support/dealer support, remote administration
Life span‐if system is leased, retain benefits of equipment after lease, no equipment payments (average phone system lifespan is 7-10 years)
CapEx or OpEx finance options
Remote worker options


Upfront equipment cost for CapEx/cash purchase (OpEx lease can offset this)
Integration to separate services provider, 2 or more bills
Cost of professional services added to initial CapEx, cost of upgrades ( can wrap into your lease to offset this)
Equipment possibly outdated quickly or no future upgrades available (Make sure your equipment is NEW or supported by manufacturer and provides software updates)

Cloud/Hosted VoIP Solutions Pros and Cons (OpEx)

Low cost initial investment
Multi-site integration
Lower short term total cost of ownership
Bundled payment plan for both equipment and service in most cases
Quick, easy disaster recovery
Easy to relocate endpoint devices, remote workers, remote administration
Robust software applications for call center, CRM integration,

Higher long term total cost of ownership (continual monthly payments)
Basic feature set (upgrades significantly increase monthly cost)
Lack of performance guarantees unless requested in contract at time of purchase
Minimal equipment and service for your money
Most require minimum 3 year contract term, locked in
Longer response times for service

Office Telesystems offers both on premise and cloud/hosted VoIP. We can help you determine which option is best. Give us a call or Request a Quote today.

Contact us today. (972) 484-4900, or in Tarrant County, (817) 529-1700. Nationwide toll free (844) 544-4900.

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