It can be overwhelming to choose a business phone system when there are so many options to choose from. The most important factor in selecting a system is first knowing what features are necessary for successfully running your business. Do you need remote workers to be able to access your phone system? Do you want messaging and video conferencing? Do you need your phone system to be able to connect to software to achieve your business goals? 

Another factor in choosing a business phone system is cost. If you’re looking to keep costs low, certain types of phone systems can help you do that. At RanderCom, we can consult you on your options and help you choose the right product for your business.

There are a number of differences between a hosted VoIP phone system and one that is based on-premises. The biggest difference here is that the premise-based system is physically located onsite at a company. A hosted VoIP system does not have a physical location and doesn’t even require hardware – the entire system is hosted and managed on the internet (in “the cloud”). Many of our clients looking for business phone systems in Appleton choose VoIP systems.

Another key difference hinted at above is hardware. A premise-based phone system requires the purchase, installation, and maintenance of equipment such as phones, wires (if you choose a wired system), and SIP trunking. A hosted VoIP system does not require any hardware, though many companies do decide to purchase or rent IP phones for users to have on their desktop. Ultimately, though, a hosted VoIP offers the option to forego traditional desktop phones in favor of users connecting using their smartphones or computers. 

Another notable difference between the two system types is cost. A premise-based system is more expensive upfront and may be more expensive to maintain and upgrade over time. A hosted VoIP system has a low startup cost (no hardware to buy) and clients pay a monthly subscription fee, usually calculated on a per user basis.

Premise-based phone systems are often preferred by larger companies with the resources to maintain an on-site system and a desire for a closed phone network exclusive to their business. The main advantage to a premise-based system is just that: it is a system exclusive to one business, in contrast with a cloud-based system where the cloud software is used by multiple companies. 

Another advantage to a premise-based system is that it may be more user friendly in a workplace where technological advances and shifts are more cumbersome for the workforce. Premise-based systems are the “old-fashioned” phone system found in offices for decades, though advances in technology have kept these systems relevant for many businesses today.

A major drawback for some companies of a premise-based phone system is cost. The startup cost can be expensive as the company will need to purchase the hardware necessary to support the system. Then, ongoing management and maintenance of the system requires either an on-site staff member or a service – RanderCom can manage your premise-based system for you. 

Another drawback of a premise-based phone system is that users cannot access the system if not in the office. A premise-based system is not the right fit for a business with a remote workforce who need access to the phone system.

A hosted VoIP phone system has many advantages for today’s businesses. Hosted in the cloud rather than existing as physical hardware at a business, a VoIP system can be accessed virtually from anywhere and on many different devices. This is ideal for today’s increasingly remote and tech-savvy workforce.

Another major advantage for businesses of a VoIP system is cost. Due to the lack of necessary hardware, the startup cost for a VoIP system is low, though a business can expect to pay a subscription fee. A business will also save money by not having to find in-house resources to maintain the system (though RanderCom can provide management support for a premise-based system).

A disadvantage that some businesses cite with a VoIP system is the fact that the system is hosted on a cloud-based platform that is shared by other businesses. While this would not be evident to users of the system in any way, some industries have strict privacy and security protocols that would prohibit them from utilizing a cloud-based platform. If this is a concern for your business, contact the experienced team at RanderCom to talk through your needs and find out how we can best support you.

Looking for VoIP in Appleton? Give RanderCom a call today at (920) 731-3944.

The total cost of a business phone system in Appleton and surrounding communities depends on several factors, including the type of phone system, number of users, and hardware and ongoing support required. Generally, a business can expect to pay anywhere from $12 to $80 per month per system user. 

Most businesses we work with are looking to keep the cost of purchasing and maintaining their business phone system low, and we are here to ensure we help our clients meet their business goals while staying within their budget. At RanderCom, we are here to answer your questions about business phone systems, talk through your options, and support you every step of the way.