What Is The Difference? On-Premise vs. Hybrid vs. Cloud Hosted VoIP

Thinking about jumping on the VoIP bandwagon? You’re not alone. A lot of businesspeople are switching to VoIP solutions to improve their business communication networks. But are all VoIP services the same? Find out how On-Premise, Hybrid, and Cloud-Hosted VoIPs differ from one another so you can choose the one that best fits your business!

On-Premise VoIP — Advantages

An On-Premise VoIP network is hosted on-site by a company’s own IT department via an in-office server. It can prove beneficial for small businesses; here are a few reasons why:

Cuts costs over time:Although the initial installation of new hardware and assembling dedicated IT staff can be more costly than purchasing a cloud-hosted VoIP, in the long run, your business will save a lot of money from having its own communication network.
Phone lines work even when the internet goes down: Unlike cloud-hosted VoIP networks — which run completely on the internet — On-Premise VoIP systems allow companies to keep a couple of their traditional phone lines active, along with new VoIP-based phones. This means that if there’s ever a power breakdown or you’re facing internet connectivity issues, your communication network won’t be completely disrupted, as the traditional phone lines will still be running and receiving calls.
Cuts the costs of purchasing additional features: When you sign up for a cloud-hosted VoIP service, you might have to incur additional charges for features that were not originally included in your plan. However, On-premise VoIP gives you access to all the features you require without any extra charges.
Build a phone system that’s tailored to the needs of your business:No matter how accommodating cloud-hosted VoIP service plans are, they’re no match for On-Premise VoIP networks when it comes to fitting your business’s needs. An On-Premise VoIP is specially designed to cater to your business communication needs. Therefore, businesses that have their own PBX have more control over their communication network and can configure its settings as needed.
Faster call transfers between extensions:When your VoIP is hosted via a server within your office space, the connection is a lot stronger between extensions than when it is hosted by a cloud-based VoIP. Thus, call transfers are seamless and lack the usual latency and connection issues.

Hybrid VoIP — Advantages

As the name suggests, a hybrid telephone network combines traditional telephony and a VoIP-based phone system to create a wholesome communication network. However, before we delve into discussing the benefits of owning a Hybrid telephone system, we must first understand the difference between a traditional phone setup and a VoIP phone setup:

Traditional Phone Setup: Also known as a landline setup, data is transmitted over PTSN — Public-Switched Telephone Network — via copper cables. The connection between users is maintained by the Integrated Services Digital Network (ISDN) during calls.

VoIP Phone Setup: SIP Trunks are used to transmit voice signals over the internet instead of calls being sent through the ISDN. The setup is cloud-based with no land or sea-based wiring involved.

Now that you’ve understood the basics of how each system operates, here are the advantages of a Hybrid System:

Ease the transition between traditional and VoIP services:This is the safest route for businesses to take when deciding to switch to VoIP solutions. It incorporates both types of phone setups so even if you are new to VoIP technology, you aren’t completely lost. This will help your business adapt to the new technology without any overbearing stress.
Reduces calling costs:You can use a Hybrid network to divide your calling needs. Meaning, international calls that cost a ton through landline phones can be made via VoIP phones. Likewise, calls that don’t require high-speed internet can be made through the landline to keep the traffic clear.
Best of both worlds: Landlines might have become outdated, but they have their own charm and use. Why should you have to give them up for another calling service? With Hybrid VoIP, you don’t have to say goodbye to your traditional phone setup when choosing to go the VoIP route and can enjoy both systems simultaneously!

Cloud Hosted VoIP — Advantages

Also known as hosted VoIP PBX, cloud-based VoIP services uses IP phones and devices on virtual platforms to fulfill your communication needs. With a cloud hosted VoIP, users can connect to the network from any platform available, such as a desktop or a smartphone.

Cloud hosted VoIP has its own set of benefits which makes it the prime choice of many businesses when they are making the switch. Some of these benefits include:

Lower costs upfront:As mentioned above, cloud hosted VoIP can be run on any existing platform, eliminating the need to buy new hardware. This means the initial setup cost is low.
Lower maintenance costs:With a cloud hosted VoIP, you won’t need a dedicated team of IT experts to maintain your network. This comes in handy when your hardware needs repairing. The maintenance of your network is not your headache when using cloud hosted VoIP, so you can save money on repairs and replacements.
Easy technical support:Similarly, most VoIP service providers offer 24×7 customer support. You can ask for assistance and guidance at any step of the way and run your communication network with ease.
Easy to set up and integrate with current devices:Most cloud hosted VoIP service providers don’t require you to purchase new hardware. Moreover, they can easily integrate with mobile platforms and help your business enjoy seamless mobility.
Local and international phone numbers:You can use a single number from multiple devices to make calls, both local and international.
Cloud VoIP offer customized features:Cloud hosted VoIP comes with customizable features and settings that can be configured to suit your business needs.
Provides access to phone systems from outside of the office: You can manage your cloud hosted extensions on the go, no matter where you are, with a simple mobile app.

Bottom Line: On-Premise vs. Hybrid vs. Cloud Hosted VoIP. Which is better for your business?

Even though all three VoIP solutions have their own set of advantages, it all comes down to the needs of your business when you’re deciding which way to go. You have to consider your business requirements before you decide on a solution. Take your time, do your research, and use our guides to make the best decision for your business.

We also offer comprehensive reviews of the top cloud based VoIP providers, so if you choose cloud-based over the other two; you might want to check them out before deciding on a VoIP provider. Best of luck!