On-site vs Hosted Phone System, should you care?

On-site vs Hosted Phone System, should you care?

Kara Howard, Head of Communicate Portfolio

Kara Howard, Head of Communicate Portfolio

Telecommunications is an area where technology is evolving at an increasing speed creating both more choice and confusion, not least among buyers. We all know that phone systems have transitioned through a major technology shift from most businesses having a physical phone system on-site to an option where everything can be stored in the Cloud.

Many organisations might have already made the decision about the best option for their business. However, others are currently facing the choice of whether to buy a phone system for their office or let someone else look after it for them through a Cloud based model.  

So what are the factors that lead organisations to choose whether SIP Trunking or Hosted Voice is right for them?

Is the budget available CapEX or OpEX?

On-site owned phone systems have been the traditional choice for most businesses.  If the available budget is CapEX then purchasing outright can be a cheaper way to go. If the business does own their own system then SIP trunks can help to get the most from the technology and SIP certainly has freed up on-site systems over the last few years.

Alternatively, if they do not want the responsibility of owning their own phone system they could look into a hosted solution where they rent access to the phone system and hand over the responsibility for providing the service to their handsets. This suits an OpEX financial model as the outlay is low.

Do they have multiple sites or are they located at one large location?

Size can determine the most cost-effective system for their business. It could be cheaper to own the system if they have over fifty users working on one site. However, multiple sites with small numbers of people should explore the option of hosted voice. Retailers traditionally have been large proponents of the hosted system technology due to the size of their business. It is best to understand over five years what the rental would be versus the cost of purchase and maintenance of an on-site system.

Do the business’s needs change frequently or are they expanding fast?

If flexibility and rapid growth are important to a business then hosted PBX is an option as it is quickly scalable.  One of the other benefits of hosted voice is that the technology refresh is taken care of by the provider so they do not have to upgrade the system.

Is control of a PBX important to them?

If having control over their PBX is important then owning their own system may suit them. Having PBX on-site means that they have access to its features and functions. They also retain control over all data, which can be vital if they deal with highly sensitive information. The addition of SIP trunks also means that they can get the most out of their hardware.

Telecommunications is an important decision for any business and cost, flexibility and control are the most important areas to include in any decision-making. TalkTalk Business wants to ensure our Partners have the best range of products in place, in order to help you service your end customer’s unique requirements.  

If you would like to find out more information about TalkTalk Business’ SIP Trunking and Hosted Voice products then please contact your Account Manager.


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