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Go with hosted VoIP rather than an IP PBX

Two industry insiders debate the merits of outsourced vs. in-house VoIP approaches.
Face-off By Dan Hoffman , Network World , 07/17/2006
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Dan Hoffman, M5 Networks

My company focuses on one product: a hosted IP phone system. Here are 10 reasons clients give as to why hosted VoIP is better than an IP PBX:

1.) "We can focus on our core business." Smart companies focus on growing their business and don't have time to manage complicated IP PBXs.


The other side - ShoreTel's Ed Basart
Discuss, debate in our face-off forum

2.) "IP PBXs can be hard to manage." Implementing the same phone system hundreds of times has taught hosted vendors how to avoid pitfalls of deploying VoIP. Companies also save time and resources because hosted providers use proactive and reactive monitoring systems to resolve problems faster than an in-house solution.

3.) "Our phone system is a service, not a product." Hosted providers develop long-term relationships with clients and have a vested interest in keeping them happy, instead of selling the system once and making more money on fixes or upgrades.

4.) "Our total cost of ownership is lower." The only equipment required for hosted VoIP is a switch, router and user handsets. Companies that buy and install an IP PBX face large upfront capital expenditures, as well as maintenance and upgrade costs.

5.) "Our phone calls are secure for remote employees." While an IP PBX uses unmanaged broadband connections to connect telecommuters to the phone system, hosted providers can leverage facilities and expertise to do this securely.

6.) "We can easily add/manage office locations." Hosted VoIP systems are designed for almost limitless scalability and can treat multiple locations as one office. The benefits of connecting all offices to the same phone system include the ability to share a centralized receptionist and use free four-digit dialing between locations.

7.) "There are fewer vendor headaches." A single point of contact eliminates finger-pointing among service providers. Clients deal with one vendor and one bill.

8.) "We have better insight into monthly telecom spending." Hosted solutions' flat monthly fees eliminate the guesswork of operating expensive IP PBXs, which require spending 10% to 15% above the purchase price for annual maintenance contracts.

9.) "We're guaranteed access to the latest technology." Hosted VoIP providers handle software upgrades at no additional charge. If a company purchases an IP PBX now, in a few years it will be stuck with an outdated phone system.

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