Hosted vs. Premise Based Business Communication Solutions

Too often, initial cost is the most important factor when choosing a communications solution that is best for your company. You should also consider the following when comparing Hosted vs. Premise Based solution for your business.

• Functionality
• Local and long distance tolls
• Maintenance Contracts
• Technical and Administrative Staff Costs

In past years, Premise Based Solutions have been optimal because of low TCO and the higher level of perceived security due to the communications solution being onsite. Today there is a move towards hosted communications solutions because of the low, upfront cost. However, consider these facts when deciding on your communications solution.

• Improvements and Upgrades to your system are performed by the provider according to their schedule, not yours.
• Research your provider and consider their viability as a company to insure they will be around for the long haul. The provider may have you sign a multi-year contract.

• Improvements and Upgrades to your system can be performed by your onsite IT staff or via a maintenance contract from your provider.
• The systems are purchased up front or leased and the customer has full ownership of all the hardware.

Total Cost of Ownership (TCO) High Low
Equipment Ownership No Yes
Monthly Telephone Line Fees Yes Yes
Control of / Access to Equipment No Yes
Technical and Administrative Staff Needed No Yes
Ease of Scalability Moderate Moderate


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