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On-Premise Purchased
or Managed vs Hosted

Which VoIP is the best VoIP?

Choose wisely. And, enjoy the benefits.

Today’s VoIP-seeking businesses have a choice of three options: Managed, Hosted or On-Premise systems. Here’s how they stack up.

An IP phone system gives small- and medium-sized businesses communication abilities previously available only to large companies. IP lets you work in new ways, accomplish more with fewer resources, and saves you money. However, the challenge is choosing the best system for you.

Each IP approach has its own benefits and limitations, which produce cost variations, differences in convenience, and various management abilities. Let’s explore the three leading options, discovering how they work, the equipment they require, and the support they provide.

Don’t miss the summary at the bottom to help you determine which option is best for your business.

Purchased On-Premise VoIP

Your business buys, installs, and maintains all on-premise VoIP system equipment, including servers, cables, and routers. Your company’s IT staff deploys and maintains hardware associated with a traditional on-premise PBX system.

What businesses benefit most:

This system works best for large enterprises interested in phone systems that can be changed easily, modified quickly, and configured specifically for optimal customization and total control.


  • No costly service-level agreements.
  • Internal IT staff knows the system.
  • Immediate upgrades by internal staff.
  • The business makes all decisions regarding system specifications. Every last detail and configuration perfectly matches your business’s needs.
  • Long-term total cost of ownership.
  • Customizable, especially for administrative functions.
  • Greater control and flexibility. Modifications to configurations are made quickly and to the business’s specs. No assistance of a service provider needed.


  • Staffing an experienced in-house IT team.
  • Up-front capital expenditures on hardware and software.
  • Ongoing maintenance costs. Continual operational expenses.
  • If the system doesn’t work out, paying for a complete overhaul.

Managed On-Premise System

Your business can enjoy the benefits of an IP phone system without the costs, risks, and hassles of purchasing a Managed On-Premise System solution with some phone system integrators. Essentially, the integrator bundles managed services into an Managed On- Premise System. With a Managed On-Premise System, a third-party provides the equipment, software, and technical expertise. You still purchase a system, but the management and upgrades are built into the cost.

Management and maintenance:

  • Remote fault monitoring and surveillance of the network
  • Service-level agreements for response and resolution based on customer needs
  • Changes and moves
  • Customer reporting and service management, with a guaranteed percentage of network uptime

What businesses benefit most:

Managed On-Premise Systems are designed for small- and medium-size businesses with limited IT resources, and for businesses that would appreciate leaving telephony hassles to a third-party.


  • 24/7 access to experienced staff ready to handle all VoIP network needs for particular businesses.
  • In some cases, limited up-front capital expenditures.  Equipment maintenance and software upgrades are built into the cost.
  • In some cases, predictable operating expenses help businesses make budgetary accommodations. Services can be based on monthly charges or fixed flat-rate billing.
  • Mobility, communications, and productivity applications provide value-add capabilities.


  • Compared to total cost of ownership, recurring fees may end up being higher over several years.
  • Compared to internal housing, system upgrades may take longer to implement.
  • Third-party vendor could go out of business or join with a competitor.

Hosted VoIP

Your business can take advantage of some of the richest features of any system. A hosted VoIP system uses a service provider’s hosted-PBX equipment to route your voice and data traffic over the PSTN (public switched telephone network) to a hosted-PBX system.

What businesses benefit most:

This system works best for any business with limited IT resources, and for businesses that would appreciate the power of a VoIP system without a huge price tag.


  • Flexibility to handle a business’s rapid growth, seasonal surges, or unexpected downturns.
  • 24/7 monitoring creates peak performance.
  • Waiting for service calls is eliminated. Troubleshooting is done remotely and quickly.
  • Providers deliver a deployment schedule faster and more reliable because a business’s staff isn’t involved.
  • Allows for an easy transition from traditional telephony to VoIP.
  • Features can be added and changes made to accommodate the ongoing needs of a business.
  • Businesses pay for only the technology they’re using thanks to per-seat licenses.
  • Lower initial capital expenditures due to no purchasing of VoIP hardware/software.


  • We can’t think of any!

Which is right for you?

Managed systems have no up-front costs, and everything is provided: equipment, software, technical expertise, and facilities. Pricing is usage-based or a fixed flat rate. Solarus’ Hosted systems also has no upfront costs and zero maintenance demands, and the quality and reliability of calls are as good or better than traditional TDM technology. On-premise approaches require businesses to buy and own the equipment and control the call data. Plus, maintain an internal IT staff.

There’s more to cost than actual out-of-pocket costs. Low voice quality or poor service can cost you business. Staff time spent fixing equipment also costs you. Of course, the cost of doing nothing could be the costliest of all. Don’t miss the opportunity to save your business money or increase revenue through employee efficiency with a hosted system.

Call 800-421-9282 or contact us now and see for yourself how a "different animal" can be a true business partner and make a real difference to your bottom line.