Hosted or on-premise: which phone system for a business that lives on the phone?

An on-premise phone system is a box in your building that your phones plug into. A hosted phone system runs in a data centre and your phones reach it over the internet. Most businesses now choose hosted, but the right answer depends on how you work.

Hosted

• Runs from a data centre; you manage it through a web page
• Works from any desk, mobile or laptop, wherever your people are
• Adds lines and features without new hardware
• Depends on your internet connection, so a second connection matters
• Can connect to your software and to AI call answering

On-premise

• Lives in your building and keeps working if the internet drops, though calls out still need a connection
• Suits a single site with fixed desks and a reason to keep calls inside the building
• Needs someone to maintain it, and parts and support get harder to find each year

Who should own what

Whichever you choose, the numbers should be yours and portable, the call recordings should be stored where your rules require, and you should be able to leave your supplier without losing either.

How to choose

Hosted, if your people work from more than one place, you want AI or software connected to the phones, or you're replacing an old system. On-premise only where there is a specific reason to keep calls inside the building and someone to look after the equipment.

Related: AI voice-enabled phone systems and numbers