What is VoIP?
Voice Over Internet Protocol, more commonly known as VoIP, is a flexible and powerful technology that many companies have switched to for better features, cost savings, increased communication with customers, and a more efficient approach to doing business. VoIP differs from a traditional phone system by using data infrastructure for phone calls. An added key benefit is that it makes it easy to connect remote workers and offices. In addition, call quality and reliability on VoIP can be better than legacy systems. Since quality is based on internet speeds: the better your speed, the better your call quality. So, just how popular is VoIP?
Businesses of all sizes and industries are turning to VoIP to help improve communication with customers as well as save money. According to popular VoIP provider Vonage, businesses that switch to VoIP save at least 30% on their phone bills.
Hosted VoIP vs. Premise-Based VoIP: What’s the Difference?
VoIP phone systems are either Hosted or Premise-Based. Knowing the difference can help you understand which one is right for your business.
Hosted VoIP means that the majority of the hardware is deployed and hosted at an off-site location from where the VoIP telephone service is being used. The system runs in the cloud, and all features are handled through the provider’s servers. The main benefit is a Hosted VoIP system can cost less to set-up than a “Premise-Based” system. A hosted VoIP system is an operational expenditure which can make it attractive to businesses who want the flexibility of a reliable system. In certain cases, there are no set-up fees for a hosted VoIP system.
A premise-Based VoIP system resides at the same location (on-site) where the service is deployed and is being used, such as a computer equipment room, phone closet, or a designated office. This usually requires businesses to establish higher setup cost, but can often result in lower long-term monthly expenses.
|Hosted VoIP||Premise-Based VoIP|
|Deployed off site||Deployed in house|
|Lower set-up costs||Higher set-up costs|
|Lower maintenance costs||Lower long-term costs|
|Monthly service costs||No risk of fee increases|