Difference between Hosted and On-Premise Phone System
There are two different types of phone systems that you can consider. we will discuss the advantages and disadvantages of each system so you can make an informed decision. We will start with the most common solution, hosted VoIP phone system.
Hosted VoIP Phone System & Service
A hosted VoIP phone system and phone service simply mean that the actual brain of the phone system is installed at a data center rather than in your physical premise, i.e. office building. Hosted systems have gained a new level of attention in the past five years due to their feature set, cost, and reliability if the right vendor is selected.
Advantages of a Hosted VoIP Phone System
- Cost savings – a hosted VoIP Phone system is drastically less expensive than a traditional phone system. Part of the reason for such drastic cost savings is the ability to use software-based phone systems vs the more traditional hardware-based. This allows the cost of the phone system to be broken across many customers, therefore, reducing the setup and installation cost
- Reliability – because the phone system is hosted in a data center, a hosted VoIP phone system can be much more reliable than a traditional PBX. A reliable company with a carrier-grade software switch is typically hosted in a data center with backup internet service, back up generator, power and more importantly geographical redundancy
- Scalability – hosted VoIP Phone systems are extremely scalable. A great VoIP Provider will have its own carrier-grade software switch that allows you to grow from few extensions and phone numbers to virtually unlimited extensions and phone numbers routed globally.
- Feature Set – Carrier Grade Software Switches used to operate a VoIP phone service is nearly always loaded with all of your feature sets needed to run your business efficiently. These feature sets can include auto-attendant or IVR, Ring Groups, Voicemails, Voicemail to Email, Music on hold, and many other features to make the small business feel like a large nationwide company.
- Maintenance – Hosted VoIP Phone Systems are maintenance-free for the end-user. This is because the VoIP Phone provider in Dallas will typically maintain the phone system for all of their clients in order to keep everything up to date. For the end-user, this is one less headache to worry about
Reliable Internet Service is essential for reliable VoIP Phone Service
High-quality internet service is an essential part of any VoIP Phone service. Without a reliable internet connection, no matter how good your VoIP phone service is, you will experience business losses. There are few things that are extremely important when VoIP phone service is selected, those are your typical Download, Upload, and more importantly latency and jitter that most people ignore.
Redundancy of VoIP Phone Service
Most of the VoIP phone companies do not own their software and rely on third parties to provide them with the core of their phone systems. This causes a problem when providing service that the service provider does not understand. With Vivant, we have specifically built a carrier-grade phone system that is referred to as Highly Available Fault Tolerant (HAFT) system. In simple terms, such systems are geographically redundant and are deployed across multiple regions in order to ensure that no matter what happens, the phone system is always functional.
Read the blog Strategic Expansion: How Multiple Numbers Transform VoIP Business Phone
On-Premise Phone Systems: When They Still Make Sense
An on-premise phone system (a traditional PBX) keeps the call-handling hardware inside your building. You own the equipment and control it directly, which some organizations prefer for specialized integrations or strict internal policies. The trade-offs are significant, though:
- Higher upfront cost: servers, phone lines, and installation are purchased before you make a single call.
- In-house upkeep: upgrades, repairs, and configuration changes are your responsibility, or a service call away.
- Harder to scale: adding locations or users usually means more hardware and more lead time.
- Single point of failure: if the office loses power or the equipment fails, so does your phone service unless you have built in redundancy.
For most small and mid-sized businesses in Dallas, a hosted system avoids these costs while delivering the same core features.
What to Look for in a Dallas VoIP Provider
Not every provider is built the same way. When you compare options, ask about:
- Redundancy: where the platform is hosted and what happens if a data center fails.
- Support: who answers when something breaks, and how quickly. Local, US-based support matters when your phones are down.
- Number porting: whether you can keep your existing numbers and how the cutover is handled.
- Emergency calling: how 911 addresses are registered and updated for each location and remote worker.
- Contract terms: length, fees for moves and changes, and what is included in the monthly price.
- Hardware: whether phones are included, leased, or purchased, and which devices are supported.
What Your Internet Connection Needs to Handle VoIP
VoIP calls travel over your internet connection, so the quality of that connection shapes the quality of every call. Beyond raw speed, look at latency and jitter, and ask your provider to size your connection for the number of simultaneous calls you expect. Because an outage takes your phones down with it, many businesses pair VoIP with a backup internet connection that takes over automatically.
How Switching to Hosted VoIP Works
- Review your current setup: numbers, lines, locations, and the features your team uses today.
- Design the new system: call flows, auto-attendant menus, ring groups, and after-hours routing.
- Prepare the network: confirm bandwidth and quality of service for voice traffic.
- Port your numbers and install phones: a good provider schedules the cutover to avoid downtime.
- Train your team and go live: with support on hand for the first days.
Want to see local options? Explore our business phone systems in Dallas, TX or compare features in our guide to the best VoIP phone systems for small business.
Ready to take the next step? Talk to a Vivant specialist or learn more about our business phone systems.
