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SIP vs Hosted Voice – Which option should you be looking at?

IP voice services which you may also know as VoIP utilise your internet connection to make calls. Giving your organisation more robust, flexible, easy to control and cost effective voice services than traditional phone lines.

Once you have made the decision to make your business phone calls over your internet connection the next question is which product is right for you?

There are two main options SIP Trunks and Hosted Voice

Hosted Voice is a software based system that lives in the cloud and integrates with your office and mobile phones.  It is fully maintained for you and you get access to great new features and functionality as they are released.  Paid for on a simple per user basis and hosted by Pescado it means that you don’t need to buy any expensive hardware or worry about the cost to maintain or upgrade it.

Alternatively there are SIP Trunks which provide the benefit of IP Voice services and are installed on your own phone system so that you own them outright like a traditional phone line.  They give you greater control and management of your telecommunications.

Which one is right for you?  Here are three things to consider:

The size and type of your business

Size can determine the most cost effect solution for your business, it could be recommended to own a SIP system if you have over 25 users working on one site or across several offices.  However businesses with fewer people per site or home and mobile workers should explore the option of Hosted Voice. Retailers for example though they are usually large organisations tend to opt for a hosted Voice solution as they have multiple sites with fewer employees at each location.  It is important to consider what the rental cost is versus the expensive of purchasing and the maintenance of an onsite system would be for your business over the medium term say 5 years.

Is the control of your own phone system important to you?

Many businesses have traditionally used an onsite phone system in their office to route calls to relevant extensions, SIP trunking integrates with your existing system so that you can continue to own and manage it.  This also means that you have direct access to its features and functions.  On the other hand if mobility is more important to your business then Hosted Voice may be better for you as most of the phone systems capabilities can be managed in the cloud via an online portal.  With Hosted Voice you can easily add on new users and don’t have to invest in hardware infrastructure onsite.

Payment model

SIP and Hosted Voice have two very different payment models.  SIP requires you to have your own phone system so there is an upfront investment for hardware, this CAPEX model may provide better value long term particularly for larger numbers of users. In contrast Hosted Voice is a better for OPEX business models as you don’t have a significant hardware purchase upfront, instead you pay a monthly fee for the duration of your contract.

The above are just some of the key considerations when deciding which solution is right for you, there are many others and each system has a myriad of features and functionality that may be more suited to your particular needs.

To learn more about how your business could benefit from IP Voice services and which is the right solution for you contact Pescado today.