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Comparisons

Hosted vs on-premise phone systems

On-premise systems were the default for decades. For most businesses under fifty people, that stopped being true some time ago.

Blog · Published 21 August 2026

Cost shape

On-premise means a capital purchase plus a maintenance contract, then a replacement cycle every seven to ten years. Hosted is an operating cost per user with upgrades included. The lifetime totals can be similar; the risk profile is not.

Practical differences

  • Adding a user: a licence versus a card, a licence and an engineer
  • Remote working: built in versus bolted on
  • Multi-site: one system versus one system per site
  • Failure: provider redundancy versus a box in your cupboard

Where on-premise still fits

Very large call volumes, unusual integrations, or sites with genuinely poor connectivity can still justify local hardware. Outside those cases, hosted is simpler and the switch-off has removed the traditional lines that fed most on-premise systems anyway.

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