Hosted Vs. Cloud Communications
Embrace the future of business communications
With the ever-evolving world of cloud-based communications, it can be difficult to fully understand how this innovative technology works and which solution best fits your organization’s needs. Traditional hosted and cloud communication solutions can offer benefits—but also include different tradeoffs and costs associated with each system.
Here, we are diving deeper into these two options and exploring the advantages of making a hosted or a cloud communications move for your mobile workforce!
Hosted communications is a service where a third-party provider manages and maintains the communication infrastructure for a business. This includes the hardware and software required for the communication system, such as PBX (Private Branch Exchange) equipment, servers, and networking components. The third-party provider installs the system on-site at the business's location and provides ongoing maintenance and support.
The following are some crucial advantages of hosted unified communications:
Hosted unified communications systems allow for much easier scalability than on-premise systems. This is because hosted phone systems can be adjusted to accommodate additional lines or features with just a few clicks of the mouse. You don’t have to worry about installing new hardware that takes up space, as these are all managed through a third-party remote server.
Hosted communications are often less expensive than purchasing and maintaining an on-premise communication system. With a hosted solution, businesses pay a monthly fee for the service and do not have to worry about the cost of hardware or software upgrades.
Hosted communications are typically easy to set up and require minimal technical expertise. Businesses can quickly get up and running with a hosted system, and vendors typically provide customer support to ensure a smooth transition.
Disadvantages of Hosted Communications
While hosted unified communications offer many benefits, there are some drawbacks too.
The main disadvantage of hosted communications is security. Because the communications are stored remotely, there is a risk that they can be accessed and viewed without permission. Businesses must ensure their data is secured, such as using encryption and authentication protocols.
Another disadvantage of hosted unified communications is the lack of customization. Depending on your chosen provider, your system may not allow tweaking or customizations to meet your needs.
With a hosted system, businesses depend on the vendor for support and maintenance. If the vendor experiences issues or goes out of business, it could disrupt the business's communication system.
Cloud Communications provides access to your business phone system from anywhere via an internet connection. Cloud solutions range from basic call forwarding to advanced unified communications platforms, giving you access to voice, video conferencing, and messaging services through a unified user interface.
With cloud-based unified communication systems, organizations no longer need to manage on-premise hardware or worry about maintaining software updates and patches. This leads to reduced maintenance costs and improved scalability as needs change over time.
These are highly flexible, allowing businesses to add or remove users and features as needed. This makes it easy for businesses to scale their communication systems up or down as their needs change.
They can be easily customized according to business needs. This level of customization can improve functionality and efficiency and ensure that the system meets the business's unique requirements.
Cloud-based communications systems often have robust security measures that can help protect sensitive data. Cloud providers typically offer data encryption, regular security updates, and other measures to protect data from hackers and other cyber threats.
On-premise communications refer to communication systems physically installed and operated within an organization's premises rather than being hosted by a third-party provider or delivered via cloud-based services. These systems are often used for businesses that require complete control over their communication infrastructure, have specific security or compliance requirements, or need to integrate with legacy systems.
In hosted communication, the system is hosted on a dedicated server owned and maintained by the third-party provider. In contrast, cloud communication systems are hosted on the cloud and are accessed through the internet.
Cloud communication systems offer more flexibility than hosted communication systems. They can be accessed from anywhere, at any time, and from any device with an internet connection. Hosted communication systems, on the other hand, are restricted to the server's physical location.
Cloud communication systems are more scalable than hosted communication systems. These can be easily scaled up or down to meet the changing needs of a business. In contrast, hosted communication systems are limited by the capacity of the physical server.
Hosted communication systems generally have higher upfront costs than cloud communication systems. This is because hosted communication systems require purchasing and installing physical hardware. On the other hand, cloud communication systems are subscription-based and require a minimal upfront investment.
Hosted communication systems require the business to have an IT team to maintain and manage the system. In contrast, cloud communication systems are fully managed by the cloud provider, and businesses do not need an IT team to manage the system.
| Aspect | On-Premise | Hosted | Cloud |
| Installation | Requires physical installation and setup on-site | Installed and managed by the provider | Accessed through a web browser or app, no installation is required |
| Control | Complete control over the system | Limited control, as the provider manages the system | Adequate control |
| Security | Top-level security | The provider manages security and compliance | Top-level security |
| Scalability | Limited scalability | Easily scalable | Highly scalable |
| Upfront Costs | High upfront costs | Lower upfront costs | Minimal upfront costs |
When deciding between hosted and cloud communications for your business, several factors must be considered. Here are some key factors to keep in mind:
Your business size and needs can also affect your decision. If you're a small business with limited resources, a cloud communication system may be more affordable since it requires a small upfront investment.
Your budget and resources are also important when deciding between hosted and cloud communications. Hosted communication systems have higher upfront costs since they require the purchase and installation of physical hardware. Cloud-based communication systems are subscription-based and typically have lower upfront costs.
Choosing the right communication system is essential for the success of any business. Whether you opt for a hosted or cloud-based communication system, evaluating your business's needs and requirements is important.
8x8 offers premium cloud-based solutions at affordable prices, making it an excellent choice for businesses looking to upgrade their communication systems. With 8x8's cloud communication services, businesses can benefit from robust features such as video conferencing, call recording, messaging, and more. 8x8 provides 24/7 support and advanced security measures to ensure your data is always safe and secure.
Hosted communications are hosted on a dedicated server at the business's location and managed by its IT team. Cloud communications are accessed through the internet and are managed by the cloud provider.
A hosted communication system gives businesses more control over their infrastructure, allowing them to customize and maintain their systems in-house. This option is ideal for businesses that have the resources and expertise to manage and maintain their communication system.
A cloud-based communication system is more scalable, flexible, and cost-effective than a hosted solution. It is also fully managed by the cloud provider, freeing up businesses from the burden of maintenance and management tasks.
Yes, a business can switch from a hosted solution to a cloud communication system. However, it's important to carefully evaluate the business needs and requirements to determine which system is the best fit.
Yes, a reputable cloud communication provider will offer robust security measures to protect their customers' data. Researching and choosing a provider that meets your business's security needs is important.