Comparing the pros and cons of Hosted vs. On-Premise telephony can be difficult, with most information leaning towards each companies’ solutions. Since Evotec offer both, we are well placed to provide an unbiased view.

Hosted Telephony is usually per user per month expenditure, this would be seen as as operational ongoing cost, whereas On-Premise is a single upfront cost followed by monthly support and software assurance. 

This means, in the short-term hosted telephony is usually lower cost, especially if you only require the basic features. However, in the long run, On-Premise telephony can be the lower cost path. 

When talking bandwidth, On-Premise telephony can help, simply because your internal calls don’t have to travel back and forth from a server. With Hosted, you need to consider the cost of any additional bandwidth you will require to deal with additional traffic. 

When it comes to security, a properly managed On-Premise telephony system may or may not be more secure than a hosted system. It depends on the skill set and the budget of your IT department and the experience of your hosted provider. 

If your communications are mission critical and involve IP, private and personal information, you need to consider the risk that they could be exposed in a security breach. 

Hosted data is considered to be a more attractive target for an attack, as there is no need to be on-premise at the time of the breach. 

One of the advantages of a hosted system is the ability to upscale and downscale the system to suit your needs. So, for any business that is rapidly growing or has staff numbers that are likely to rapidly change, a hosted system can be an excellent choice.

Many organisations need more complex telephony features such as Unified Communications, IVR, a complex DECT handset solution or integration with your business applications. A hosted solution may provide these features, but it will add extra costs, leading the cost of customising a hosted solution to be a drawback. 

The pros and cons of either solution are complex. In the end, the best solution will depend on your unique business circumstances and combined expertise of your in-house IT department, your telephony provider and your hosted service provider. 

The correct solution requires a strong understanding of your business and future growth strategy.