Hold the Phone: Hosted vs. Premise-based VoIP Systems

Brring, brring! It’s time for a new phone system. Should you go with a hosted Voice over Internet Protocol (VoIP) system, or a premise-based VoIP system? To determine which system works best for your business, here’s what you need to know.


Hosted VoIP. With this system, you access a service provider’s network through your local Internet connection.

Upside: There’s no need for new routers or software. You don’t need a server room or in-house IT experts, either. It’s also easy to add users and make changes.

Downside: With ease and scalability comes limited customization. System features are offered as preset bundles. If your business’ phone needs are straightforward, a hosted system is often the best choice.


Premise-based VoIP. This system resides on your local network and is part of your infrastructure.

Upside: You have a fully customizable phone system that you control. You can make the changes you choose, when you want to make them.

Downside: At the outset, you’ll need to install equipment, upgrade routers, and purchase hardware and software. In addition, you’ll incur annual software assurance fees for ongoing support and upgrades. You’ll also need an IT person on staff to manage the system, adding users and making changes as needed.


How can we help you? If you’re unsure which system is the best fit for your business, we’ll guide you through the decision-making process. If you opt for a hosted system, we’ll contact providers to arrange service. If you choose a premise-based system, we’ll program customized changes that meet your specific needs.

You can “call” on ARG Communications for expert assistance with your new phone system. Call (302) 225-2000 or email ContactUs@WhyARG.com to schedule a consultation.