When it comes to business VoIP, you can choose between two options: local solution or hosted softswitch solution. For SMBs and SMBs, without a doubt, the obvious choice is to start with a hosted softswitch solution. However, many companies prefer to stick to the hosted softswitch solution rather than setting up their own local softswitch. There are plenty of reasons to argue why a hosted softswitch service is better than on-premises solutions.

Maintenance

Let’s see the most important part: administration and maintenance. For the hosted software switch, maintenance is not an issue as it is hosted and managed on a third-party server. The hosting provider takes care of all the nuances and support, while companies can focus on their core business and offload all the headaches related to their softswitch infrastructure.

Expenses

Instead of the capital expense that goes into investing in a local solution, companies can consider a hosted solution instead of some operating expenses which, again, are not a large sum. In addition to the investments you must make in an on-premises solution, there are other expenses related to upgrades and maintenance. However, with a softswitch solution, such expenses will never appear.

Upgradation

Again, for a hosted softswitch service, you can always take advantage of the latest in technology and security. However, it is only possible to update your local software switch periodically as you need to focus on the most important aspects of your business.

Scalability

Scalability is another advantage of the hosted softswitch since, unlike scaling an existing infrastructure, you can change your budget and go for a more elaborate plan.

Redundancy

Last but not least, businesses have more reason to opt for a hosted softswitch solution due to the redundancy factor. For a local solution, a hardware failure brings many communication problems that make customer service difficult. However, for a hosted solution, there is almost no possibility of technological problems, as the solution is cloud-based.

Said and done, what about security in a third-party managed solution?

Security is a top concern for companies considering a hosted solution but walking away with some serious concerns. By the way, companies that handle confidential customer information are not completely convinced that communication data hosted by a third party would be secure. The solution is to ensure that the provider follows all security measures, be it encryption (eg SRTP) or VPN tunnels to protect data sent over the internet. The customer is also legally protected from toll fraud attempts on a hosted solution, as the provider has full responsibility for the IP PBX.