Hosted phone systems are generally well suited for 8 users or less. Typically a company with 10 users will outstrip the capabilities of a hosted phone system. Some of the reasons why are, more complex call routing, after hours calls, handset choice, features and management costs.

You see a hosted phone system provider needs to provide for the masses for their service to be profitable and easily accessable for small business, where as the on premise provider typically has a more complex customer who needs more than the generic flavour offered by hosted phone system providers.

Here are some easy ways to determine if you should be looking at a hosted phone system

  1. Monthly cost oposed to capital cost
  2. Budget focused
  3. Self installation
  4. Light on feature needs
  5. Limited Infrastructure like cabling
  6. Single office
  7. Self Management

Here are some easy ways to determine if you should be looking at a on premise phone system

  1. Strong feature set requirements
  2. Solution seeker
  3. Multi Site/ Office
  4. Enterprise focused on growth
  5. Strong alliance with outsourced IT professional

Some providers have invested in sate of the art telephony solutions hosted in data centres, these solution clearly outstrip the generic hosted versions as they are a true phone system, albeit sitting in a data centre. These are great solutions as they are usually provided by IP telephony experts endeavouring to cater for a competive market