Hosted or On-Site VoIP?

Once you have decided to replace your standard telephone system with Voice over Internet Protocol (VoIP) solution, your next task is to choose between a hosted and an on-site VoIP system. Both are excellent, but of course each has their own set of pros and cons. Some business owners in Singapore said that they favour the ease-of-use and scalability of hosted VoIP, while others opt for the maximum control that an on-site Voice over IP system provides.

VoIP in Singapore have set the new standards of business telecommunications because of its comprehensive and extensive set of functions. A range of features like call management, reporting, monitoring, conferencing, messaging, and data recovery features is standard in both hosted and on-site systems. Your choice greatly depends in the availability of in-house experts and on the plans you have for your company in the future.

Installation and Management

The most obvious difference between hosted and on-site Voice over IP from in Singapore is whether the system is installed in your premises or accessed through the Internet as a hosted service. An on-site system operates through your existing local network, so you or your IT personnel are the ones accountable for installing the solution and upgrading the routers that will be used as a gateway to support the new phone system.

On the other hand, hosted VoIP usually don’t need to upgrade the router since the gateway is part of your service provider’s network. Also, many service providers in Singapore will allow you to start using the system as soon as you sign up with their plan, and as long as there is a VoIP phone connected to the network. However, both solutions require faster Internet speed support Voice over IP traffic.

Moreover, in-house Voice over IP needs on-site resources and experts to maintain and manage the system, while hosted VoIP doesn’t. Getting away from the maintenance and management of a complex system is the number one reason why many most small businesses in Singapore prefer the hosted solution. However, most medium to large enterprises with IT department choose in-house system as it gives them full control over it. With on-site solution, you can exercise more control and customization in your Voice over IP system. Conversely, hosted services usually come in bundles, so expect a bit of limitation when it comes to choosing features and functions you want to include in your plan.

Upfront Cost

Hosted Voice over IP typically has lower upfront cost and is charged with flat-rate monthly fee, which is determined by the number of phone lines you want to be installed and on the functionalities and features you choose. Conversely, an in-house service has higher upfront price, but no recurring monthly fee. An installed solution requires for a purchase fee for its software and hardware, as well as installation and consultation fees.


It’s ideal to pick a hosted system if you have months when more users make use of your phone system, such as hiring more temporary employees for the holidays. It is easier to add more users with hosted Voice over IP than an in-house one. Because VoIP functions through the Internet, your service provider can increase the number of your users in just a click on your account. Adding new IP phones to an installed system is likely to involve installation of a new network and equipment, making it more difficult to scale than hosted VoIP.


Another thing to consider is the features offered in each type. Many service providers do not offer the same features in their hosted service as they do for their on-site system. If important communications features like conferencing and IVRs are missing, then the service may not be the best option for you business. Also, do remember that with hosted VoIP, your system is still able to function and use its features in case your office Internet goes down. With on-site solution, expect a system paralysis during Internet failure in your premises.


For small companies with frequently outsourced IT staff, it can pose a serious threat to your company’s critical data if you choose an on-site VoIP. For security purposes, a hosted service is a much better option in keeping all of your data safe. This is because hosted VoIP in Singapore have dedicated pool of resources to secure their customers’ data. But if your company has security regulations to follow that require data to be stored on-site, a hosted system is a much better fit.


With on-site Voice over IP, what you see is what you get. You are operating the system based on your or your IT staff’s knowledge and you can’t expect more than what you or they know. For hosted service, you let the experts do what they do best. Especially in cases of disaster, you are in good hands, knowing that your VoIP tech support is a master of their own service and can help you with data recovery anytime.

Picking a suitable Voice over IP system is crucial for the productivity of your company. Determining the right solution involves multiple factors, which includes whether you prefer a one-time expenditure or the monthly expense. After comparing the pros and cons of hosted and on-site system and determining which VoIP features are your must-haves, you are likely on your way to choosing the best VoIP in Singapore that will provide you the greatest advantage for your business.