Guide: On-premise vs hosted VoIP telephone systems

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1 Guide: On-premise vs hosted VoIP telephone systems What s the difference?

2 Introduction In essence, there is no one-size fits all approach to telecoms as the reality is that it is more a case of what s the best fit for you? Where one business would benefit from a hosted telephone solution, another may be best suited to on an on-premise platform. Each business operates in a unique manner, so to gain the optimum value from technology, it is important to consider the core objectives of the business in the immediate and longer term to enable the design of a solution that is tailored to fit your needs. What is VoIP? To understand the difference between on-premise and hosted VoIP telephone systems, you need to understand what VoIP is first. VoIP stands for voice over Internet protocol a language that enables voice calls to traverse the Internet. Sometimes referred to as IP telephony or IPT, VoIP delivers calls over the Internet or private data networks therefore avoiding the tolls charged by the ordinary telephone service - the public switched telephone network (PSTN) where the more you talk, the more you pay. Traditionally, calls traversed the PSTN via digital lines trunks (ISDN2 or ISDN30) or standard analogue lines. But the benefits do not end there...

3 Efficient working Flexible features allow you to integrate different devices (desk phones, smartphones, PC softphones) and features, such as unified communications and hot desking, so you can give mobile and home workers the communications tools they need, streamline your working practices and be more productive. Complete control You can make moves, adds and changes without having to call in a third party engineer. Expansion is simple too. Further cost efficiencies You can leverage your investment in your existing local area network (LAN), which you use to link your PCs, printers, etc, by using it for your telephone system too. No need for extra cabling. Boost productivity and efficiency with VoIP

4 The on-premise VoIP telephone system Also known as the on-premise PBX, this can be broken down into two parts. On-premise means located on your premises while PBX stands for private branch exchange, more commonly known as a telephone system. An on-premise VoIP telephone system will be located in your comms room or somewhere similar. It will link to your handsets using your LAN. It will link to other your sites using the Internet or private data connections, so these calls are free of charge.

5 Custom-built to your business needs to include disaster recovery requirements and enterprise level functionality, such as unified communications, contact centre, PC softphones, etc. Can accommodate a blend of technologies so you can migrate to full VoIP at your own pace often retaining the use of your existing handsets or traditional voice services to suit specific needs, e.g. emergency phones and faxes. Plenty of choice from a range of manufacturers. Add branch offices and remote extensions using an Internet connection. Control every aspect of your telephone system using a simple management platform so that moves, adds and changes are easily accommodated. Purchase features when you want to rather than when they become available.

6 Call costs are lower than traditional telephone systems as they are delivered over the Internet or private data networks known as SIP trunks*. SIP trunk costs are lower than traditional phone lines, as well as taking advantage of additional disaster recovery options. In comparison to hosted telephone systems, there is no need to purchase a line per handset as most businesses can operate very efficiently on an 1:4 ratio. Lower operational costs over time a business owned VoIP telephone system will usually result in lower average monthly operating costs resulting in a lower total cost of ownership. *A session initiation protocol (SIP) trunk service connects a telephone system to the PSTN via a dedicated IP connection for making and receiving multiple concurrent telephone calls. Lower operational costs over time

7 The hosted VoIP telephone system There are actually two types of hosted telephone system. Your telephone system is located in a secure data centre which you link to using private data connections. As a critical piece of hardware, it will benefit from the perfect environmental conditions and premium connectivity offered by a data centre, plus have the disaster recovery benefits of being offsite. You will retain the control you had previously enjoyed with your onpremise system. Your IT or telecoms department will still manage it in the same way. Your telephone system is hosted by a specialist cloud provider. Your telephone system is located in one of a number of super secure, networked data centres, known as the cloud. Your hosting provider will manage its environment for you. Handsets are simply plugged into a router to gain access to your telephone system while the day-to-day functions are managed in-house using a web-based administration tool. This second option is being widely adopted by businesses across the UK so we will use this type for the purposes of this guide.

8 Low initial hardware and set-up costs. No need for a substantial capital investment. Purchased on a per user per month basis an OPEX model rather than CAPEX this set fee means businesses will know exactly what they will be paying each month. The inclusive fee covers software upgrades and support. Calls are free to UK landlines and mobiles** to minimise ongoing call costs. Easy to link multiple offices and branches. Disaster recovery is built in by virtue of the network of data centres hosted telephone systems are located in. **Usually subject to a generous fair usage policy Reliable with 99.98% uptime.

9 Calls can be also quickly diverted to other offices, home numbers or mobiles to provide a business continuity solution. Inbuilt functionality includes automated attendant, hunt groups, out of hours and on-hold messages, and conference calls. Mobile and remote workers can enjoy desk phone quality features with one-number integration functionality on their smartphone. Hot desking is also supported. Additional end users can be added with the purchase of extra licences. Call handling and management features such as click-to-call, call history, voic and recordings, all through an easy-to-use web interface. Easy-to-use administrator portal to manage moves, adds and changes without calling in a third party engineer.

10 Need further advice? If you are planning to upgrade your telephone system but are still unsure which telephone system is best for your business, please do not hesitate to get in touch with our team. Telephone: Web: