Skip to main content

What is Hosted VoIP?

A hosted VoIP system uses the Internet to route calls between parties and can be hosted on a third-party’s server. Hosted VoIP offers your business greater flexibility by letting you use your computer or any other device with internet access to make and receive calls. You can also choose a hosted VoIP solution supported by a reliable provider like IT Support Lafayette that works hand-in-hand with your existing system. This will help keep things simple for your employees and reduce ongoing expenses.

What is On-Premise VoIP?

On-premise VoIP is a more traditional and less cloud-based form of hosted VoIP that has been around for some time. Unlike most cloud-based services, on-premise VoIP requires hardware to be housed at your physical office. A dedicated voice network connection is required to transmit calls. This can be a more attractive option for businesses that already have an IT department on staff.

Business Hosted VoIP Vs On-Premise VoIP Phone System

Hosted VoIP Vs On-Premise VoIP

Customization Options

On-premise VoIP systems offer more customization options than hosted systems do. Your IT staff can continually update and change the internal workings of this VoIP, tweaking it to your exact liking. Whether that means adding a handful of applications or simplifying the overall system, it’s up to you how you want to go about it.

Internet Speed

If your business experiences slow Internet speeds, consider an on-premise system. On-premise systems are a good option for companies that want to avoid dropped calls and spotty sound quality. On-premise systems ensure that businesses have high Internet speeds to handle their phone service needs and requirements.


Hosted VoIP systems offer many advantages to customers that opt for them. They usually come with a fixed monthly cost and maintenance agreement, offering substantial savings and making the systems easier to budget for. Although they typically don’t permit as much customization as onsite systems, their convenience and ease of use often make up for that. Hosted VoIP systems are typically the best option for many businesses, as they provide lower costs, predictable monthly expenses, and more flexibility than an on-premise system. On-premise hosted systems carry higher upfront costs that are due to purchasing hardware and third-party IT support if required. They also have unpredictable monthly costs while occupying a fixed physical location in your building’s office space. However, on-site systems might be worth it for your business if you run a smaller company that isn’t looking for portability or needs specific personnel to manage the system or network.


When you choose an on-premise system, it’s up to you and your IT department to maintain the servers. If anything goes wrong, you’ll need to rely on your team to diagnose and fix the problem. On top of that, these servers will also require continuous repair work. With a hosted system, if something goes wrong, your organization doesn’t need to worry about putting in the work to fix it. Your third-party provider is there to make sure that everything works as expected.  A hosted system provides more control over your organization’s data without the risks of maintaining your own hardware and software. A third-party vendor can maintain hardware and software for you, but delays in customer support or a lack of transparency about how your data is being handled could make it difficult for your business to use the hosted system effectively.


When comparing a hosted VoIP system to an on-premise system, there are several reasons why you may want to choose a hosted solution. A hosted VoIP system is often more cost-effective, reliable, and has more features. The reliability is of particular importance if you have to have phone service available at all times, such as when dealing with customers or clients on a daily basis. If your business uses other cloud-based services for email and other applications, consider integrating a hosted VoIP system into your cloud-based platform. Features provided by hosted systems can include video conferencing, integrations with CRM software, voicemail-to-email capabilities, automated call distribution queues, unified communication interfaces, and more. Many on-premise systems may have some of these features as well, but it is much easier to find a hosted provider that offers the latest and most relevant solutions for your company’s needs.


If you want to ensure your business is scalable, use a hosted system supported by a reliable provider like Managed IT Services New Orleans. An on-premise system makes it tough to scale because you must manage updates on your own. A hosted system is handled by your third-party team and new users can be added quickly. If you ever need to scale back, it is all taken care of for you. There is no need for extra purchases of hardware or installation on your part. When your business grows, a hosted system makes the transition much more seamless.


Hosted VoIP systems are popular as they offer a high level of security against malicious attacks. Hosts not only do everything in their power to protect against possible threats, but also assist subscribers in protecting themselves. On-premise systems make security a priority but IT personnel will need to take extra measures to ensure the safety of all data that goes through their system. Whether you like to keep things in-house or your company is too small to host a dedicated VoIP system, hosted VoIP Business Phone Solutions provide the convenience of maintaining a VoIP phone system without all of the management hassles.