Pros and Cons

There are pros and cons of both hosted and on-site phone systems. It’s important to understand the differences to make the best decision for your business.

ExpenditureOpex expenditure (not upfront)Capex expenditure (upfront)
MaintenanceNo maintenance requiredOngoing maintenance
UpgradesIncludedNot included
TrainingNot providedProvided
ExpansionLow costHigher cost
ProsDoes not require a dedicated staff member on-siteCan still connect during power cutsProvider handles installation and upgradesEasy and fast enhanced featuresSimple relocation processUser can stay with current carrierReduced costs over time as server is owned100% control to add, edit and delete usersOpen source features without license feesChoice of ISDN or SIP Trunks (lower cost than ISDN) to route traffic
ConsVoice quality relies on Internet connectionLoss of Internet results in loss of phone service (can go to voicemail or routed to mobile)Cancellation fees may occurRequires a dedicated staff member on-siteLoss of functionality during power cutsYou’re responsible for installation and upgrades (technician may be required)


Hosted systems based in the cloud have low start-ups costs, allow you to manage communications from anywhere and all IT responsibilities are with the provider, meaning you need no dedicated IT staff for this resource. A huge benefit is that allowing staff access to your phone system anywhere promotes efficiency and productivity.


Installing SIP Trunking and having hardware on your premises gives you a great deal of control and customisation of features as you use the software. Due to the level of knowledge needed, it is advised to have a dedicated IT staff member or members to manage this functionality.

This service provides low monthly rates and you can have metered payment plans or unlimited contracts.

Both hosted and on-site phone systems, where you are using a SIP connection, use your Internet connection.

Which is right for my business?


Hosted is ideal for businesses that are just updating to VoIP systems and are new to the functions and processes. Hosted allows businesses to have the technology, performance and maintenance taken care of by the provider, meaning there is minimal work to take on when the system is adopted.

Hosted would be the best option if:

  • You do not want to incur high upfront costs
  • You do not have additional IT resource to manage the system
  • You want to experience the following benefits of hosted
  • You’re a small or medium sized business


An on-site phone system suits larger businesses that will need to add new users frequently and want to take on an advanced level of day to day customisation. It’s a long term investment that saves on costs overall as you own the hardware (servers and switches etc).

On-site is the best option if:

  • Your finance plan suits high upfront costs with low monthly rates
  • You have dedicated IT personnel to manage the system
  • You want a highly scalable and flexible system

You also need to take into consideration projected business growth, whether you operate across multiple sites and if you are planning on relocating in the near future. If any of these are the case, then hosted may be the best option.

Once you get in touch with SCG, all requirements and business considerations can be discussed to create the best package for your needs.