Is a Hosted Phone System Not the Latest and the Greatest in Telephone Systems?

Published Dec 17, 2018

This type of question usually goes around in the industry although technology purists may answer you yes! And provide you with reasons why it works. The answer is more complex to be treated in this discussion. In short, the virtual or hosted phone system idea is not a new thing. Initially, when you started on your corporate journey, your phone system may have been the old style models that used landlines.

Unknown to you, that phone is a virtual phone system endpoint. However, what it boils down to is a Hosted PBX like the one on offer with MaxoTel, they are evolutions beyond that technology while still paying heritage to the original concepts. A Hosted PBX allows for the main office, remote, and branch office users to all work respectively from the same business phone system that is hosted securely in a data centre.

Which Phone System is Worth the Investment?

This particular question has a lot to do with your Company's buying culture and what the ultimate goal is based on the business requirements. The simplest way to answer this question is this; if you are thinking about On-premise system, know that it is a capital investment. On the other hand, Hosted Phone System is only talking operational expenses.

Virtual phone system's upfront cost is usually lower since you will only be buying VoIP enabled phones and the PoE switches typically. Although you may be required to purchase additional hardware for some applications. Furthermore, you may incur other expenses due to configuration service charges if the provider offers that service. Additional costs may include monthly charges for extra features and additional extensions or users. The other thing to note is that most Hosted PBX offerings are subscriber based services, that is great for many businesses that require changes or want security of a maintained phone system though.

As for the On-Premise system, the upfront cost will be on the high side although you can borrow or lease money. However, you can convert the expense to operational expenses since you are purchasing the licensing, server, and the switch. Moreover, your on-going expense may be mitigated through paying only dial tone monthly charges.

If you have the appropriate telecom partner, the can offer you the Total Cost of Ownership analysis and numbers for the two solutions. With this solution, you can now see where your monthly Hosted PBX costs equate On-Premise system upfront costs. After that, your organisation can now decide whether to accept the ROI.

Do I Have the Right Equipment to Undertake Either Solution?

How you set up your network hardware is essential anytime you want a voice product that can suit your network's data. Moreover, if you are going for the hosted system solution, there is the need to make sure your bandwidth is stable. Furthermore, there is the need to ensure that you obtain constant low latency. On the other hand, if you are using On-premise phone system solution, your dial tone is essential. There is the need to ensure that your provider can deliver the accurate dial tone technology.

Moreover, you should confirm that the provider of your dial tone has the system's manufacturer certification. At least, you should allow the providers to perform the required testing. You shouldn't be their guinea pig. Ordinarily, IP voice in any form whatsoever normally needs Cat5e cable or high physical phone. That is why it is advisable to use a PoE switch for plugging phone devices. However, you should not forget that what you are installing is a server that carries IP devices. Make sure to handle these devices like a data server or computer which is careful.