Hosted vs. Premise Based Offerings

Variety is the spice of life; having options empowers one to make a decision that can best suit their particular needs. When it comes to digital communication for business, there are two different types of offerings: hosted and premise based.

As a company that is able to offer both options to our clients, we thought it’d be important to explain the difference between the two:

Hosted PBX or hosted VoIP, otherwise known as an Internet phone system is one where the provider is responsible for housing the IP-PBX as well as handling the technology required to provide the services to the phone system. The desk sets will plug into a router and the calls, signaling, and features are handled through an IP-PBX server at the provider’s location. The provider of the hosted PBX charges a monthly fee that is inclusive of a minutes package and potentially certain features.

On-premise PBX is also known as an IP-PBX phone system. It is similar to a traditional PBX system that resides at a location, such as a computer equipment room or phone closet. The main difference is that IP routing is done with more current technology. The signaling is done with an IP phone to the IP-PBX server using a LAN. Calls can go through a traditional phone company as well as voice over Internet (VoIP) using SIP trunking. Gateway cards are used to connect the system to the traditional phone company provider. The provider can be the one that already provides service, though a SIP trunk can be configured for use with an Internet service telephone provider (ISTP).’ (source:

Here at NuEdge Communications we will closely and carefully assess your organization in order to help you determine the best choice to make that will both meet your needs and provide effective service. Contact us to learn more!

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