IP Telephone Systems: Hosted or In-House?

IP telephone systems are increasingly common because the option for home internet connection continues to gain momentum. An IP telephone system is one in which the phone calls are routed either over the internet or your using your local network (LAN). This popular system can reduce costs because customers are not permitted to use the network of their telephony service provider when making calls. The technical advantages of the IP telephone system are vast. However, users now have another dilemma: Should their IP telephone system be hosted or in-house?

 

Hosted telephone system

A hosted telephone system is primarily the responsibility of the provider who houses the IP system and deals with the technology required to provide specific services. There is a monthly fee, which is charged by the provider who handles the calls, signalling and features of your phone from their location. The fee may include a minutes package or you may opt to be charged for each minute you use. For an additional fee, you can choose extra features for your IP phone.

 

In-House Telephone System

An in-house telephone system is housed at the location where the internet connection is being received. This system may be stored in a dedicated cupboard on your business premises or perhaps in a home office. The in-house telephone system uses an IP phone to signal to the PBX server with the use of a LAN. The calls are made using the services of a traditional phone company as well as voice over internet protocol (VoIP). The system is connected to a traditional phone company provider by using a gateway card. Most people employ an Asterisk based system, due to its use of open source software which enables flexibility and cost-effectiveness.

 

Which is best?

The IP routing of the in-house telephone system often uses more current technology than that of a hosted telephone system. The use of an open source in-house system, such as Asterisk ensure that costs are competitive for manufacturers and VoIP providers. This saving is enjoyed by the customer who is able to benefit from the latest technology and impressive features at a lower price than was previously anticipated.

However, an in-house telephone system is initially more expensive and a bigger commitment. This is because a customer would have to buy hardware, including a server to be able to connect the specific telephone company to the IP phone. The hosted telephone system only requires you to purchase an IP phone and connect it. However, sometimes a router and network switch may be required to ensure that one is dedicated to VoIP.

The maintenance costs are also higher on an in-house telephone system because it is housed at the service user's location. However, people are often persuaded to invest in an in-house telephone system because of the lower monthly cost and the ability to SIP trunk to enable cheaper calls, which off-sets the initial expenditure.

The hosted telephone system is not always as flexible and sometimes has more limited features than the in-house telephone system, depending on the service offered by the provider. However, the set-up is relatively easy and any new features are installed by the provider. The hosted telephone system can also be plugged in anywhere there is an internet connection. If you choose to opt for hosted telephony, the key is to do your research and make sure you select a provider that offers a cost-effective service with many advanced features as standard.

 

The hosted telephone system is a popular choice for less tech-savvy customers who want a swift set-up with little maintenance. An in-house telephone system involves a complex start-up and the ongoing maintenance costs are not for everyone. Hosted IP telephone systems are typically charged on a per-user basis and this makes them much better suited to smaller companies. Because of the pricing structure, it becomes more economical to opt for an in-house system once you get beyond a certain number of users. But, cost is only one factor and some large businesses still prefer hosted telephony because it saves them having to manage and maintain their communications, which can be stressful and time-consuming.

 

For IP telephone systems in Birmingham and across the entire West Midlands region, contact Midland Networks today. Our hosted IP telephone systems come with an extensive array of advanced features as standard and our prices are amongst the most competitive in the industry.