IP Phone System -vs- Hosted System (Cloud System)

Purchasing a IP Phone System consists of buying all the hardware to connect to a call carrier and handsets. This includes a PBX and optional POE switch

For a Hosted System you do not have a PBX just the IP handsets and an optional POE switch. This can be even less if the hardware is already in place.

In many cases network hardware such as modems, routers and switches may additionally be needed for both.

Let’s compare costs.

Initial outlays are generally more for onsite PBX solutions. IP phones (i.e. Yealink branded IP handsets could be used either for  IP Phone Systems or for a hosted solution) are required for both, but other equipment such as the VoIP phone system main equipment and gateways can be specific for the service.

Using an onsite PBX system will cost more upfront to put in place. Once in place you have a monthly cost per line and call costs

With a hosted solution an IP phone is generally required, but you can also use the Desktop feature to make and receive calls. No onsite system is required so upfront costs are less.

A summary of the positives and negatives for comparing the costs for the two are:

IP Phone Systems
  • Higher initial equipment cost and higher setup cost.
  • Lower monthly call costs as you pay for only the number of lines, not the number of handsets.
Hosted VoIP Solution
  • Lower initial equipment cost and lower setup cost.
  • Monthly costs can be higher, depending on end user numbers.
  • More flexibility and end user options.

Features and other important considerations

IP Phone System Positives
  • Suitable for large companies as you only pay for the lines and not per user.
  • Multiple trunk types for backup or GSM Routers for free calls to staff mobiles
  • Link multiple systems together or just use remote handsets.
IP Phone System Negatives
  • Hardware failure of the main equipment results in loss of all internal communications.
  • Extra upfront costs
  • Limited end user features
Hosted Cloud Solution Positives
  • Moving office is usually just a matter of plugging in the phone to a broadband connection
  • Improves internal & external communication.
  • Mobile ready
  • Easily expandable
Hosted Cloud Solution Negatives
  • Monthly costs can be higher with larger end user numbers