In-House And Hosted (Cloud) Voice Products

There are several benefits of using a hosted VoIP service: 1) little or no floor space, 2) minimal overhead as all you need are Internet access and station equipment; 3) low startup cost usually an installation charge plus monthly fees; 4) equipment is in a secure location offsite.

Some drawbacks include: 1) you are leasing the equipment, so you cannot depreciate it because it’s not a capital investment; 2) there can be a perceived loss of control in managing telecom activities. However, the reality is that vendors in this space are generally accommodating of users managing as much or as little of their operations as they want.

Some potential reasons cited for using VoIP phones include cost savings and productivity gains. Can you outline some of the reasons businesses use VoIP today?

Instead of a separate operating environment, with VoIP technology voice communications can now be another IT application. Most VoIP systems do not require floor space-consuming cabinets; they are simply additional servers and network interface devices occupying a standard 19-inch rack.

Most VoIP systems provide all of the traditional PBS-based features. Something that’s especially useful is the ability to disconnect a phone and plug it in somewhere else. Then, the phone can automatically re-establish itself in the system and reconnect to the main server. This could save phone installation expenses associated with internal and external moves.

One way would be for employees to disconnect their VoIP phones as they were leaving a building and reinstalling them at an alternate site. You’d have to make sure that any designated alternate work area has Internet access.

What are the pros and cons of using a hosted VoIP service vs. an in-house product?

There are several benefits of using a hosted VoIP service: 1) little or no floor space required, as the provider’s site houses servers and other network equipment; 2) minimal overhead is required for equipment, as all you need are Internet access and station equipment; 3) low startup cost to launch the service, usually an installation charge plus monthly fees; 4) equipment is in a secure location offsite, so it’s protected from any disaster affecting your site.