Hosted VoIP vs Dedicated VoIP

October 19, 2021by Russell H0

Are you curious about Hosted VoIP vs Dedicated VoIP? Knowing the difference between hosted VoIP and dedicated VoIP is crucial for your business. Both types of PBX phone systems are great for your business, giving you the features to fill up the adequacy. As a result, the productivity of your workplace will be greatly enhanced and make your customers happy.

— Keep reading this article to distinguish better between a dedicated VoIP and a hosted VoIP. Once you read the article, you will be able to decide which one meets your business requirements. For further consultancy, the experienced installers of vpsvos will be glad to help.

What is Hosted VoIP

It is an advanced cloud-based telephone system where calls pass through the provider’s server.

The benefits of hosted VoIP. Although Voice over IP (VoIP) technology was invented in the 90’s, this particular one is beginning to rump up recently. Therefore, many small to medium-size businesses are getting interested in this hands-off technology. You don’t have to do much, system management, as well as maintenance, will be handled by the service provider.

The Benefits of Hosted VoIP


  • Hosted VoIP service is excellent for communication. From start-ups to medium size companies hugely depends on this type of service.
  • This service is easily scalable, matching your exact needs regardless of the growth of your company.
  • If a company is more suitable for working remotely, then a cloud-based system like hosted VoIP can be a great solution for them.
  • The installation cost is very low and you can get started in no time.
  • On top of that, the service provider is responsible for managing and maintaining the system. There is no need to hire an in-house IT staff.
  • This type of VoIP service is relatively cheaper than other types of VoIP solutions. Because there is no maintenance fee for not having any on-premise server.
  • Hosted VoIP doesn’t affect your in-house internet that much. So, you don’t have to worry about low bandwidth.

 The Drawbacks of Hosted VoIP


  • Call quality will drop for poor internet connection.
  • Need rapid contact with the service provider to fix issues when you are dealing with downtime.
  • You will not have full customization abilities or control as the service provider has superior access.

What is Dedicated VoIP

A dedicated VoIP is a protocol that switches calls from regular public telecommunications to network or Voice over Internet Protocol (VoIP). People may confuse dedicated VoIP with on-premise VoIP. But they are not the same. Both dedicated and on-premise VoIP services are used by companies that have a separate IT department. — You or your organization will have an entire server where you don’t have to share the resources.

The Benefits of Dedicated VoIP


  • Dedicated VoIP service offers a full set of IP PBX (Private Branch Exchange) functionalities and features.
  • The server will be deployed at your office or any place where you like to have it.
  • You will have the leverage of having strategic relationships with various communication managers to ensure your business gets the desired communication needs.
  • It offers better customization options and administrative control than hosted VoIP.
  • By optimizing bandwidth, it decreases the overall downtime for your website.
  • You don’t have to bother with maintenance and management, the service provider will handle everything for you.

The Drawbacks of Dedicated VoIP


  • Sometimes, it may not work well for the remote workers as the server is located inside the office premises.
  • You have to deal with some upfront costs as the server installation and maintenance are higher than other types of VoIP services.
  • Although the service provider will manage and maintain most of the configurations, you will need to configure some core stuff by yourself. For this reason, you either need to have some technical knowledge or hire an IT professional.

Hosted VoIP vs Dedicated VoIP: The Top Differences

Both hosted and dedicated VoIP is great. But, there are some significant differences between these 2 VoIP systems that can change one’s perspective for making a decision. Let’s take a look at those differences –


The VoIP service that you have chosen for your business should grow with you over time. More team members will join and you may need additional communication devices when your business expands. Not only will increasing phones and members do the job, but the VoIP solution should also have the ability to enhance its features.

— A dedicated VoIP needs installing and maintaining an on-premise server, which is more costly and complicated. You will have to manage these by yourself. You may have to deal with additional expenses if something goes wrong. That is why a hosted VoIP solution is better as it easily scales with your business. And it is also easy to implement as there is no on-premise server and it has more capacity.

Installation and Maintenance

The service provider will do most of the work for installation and maintenance for both hosted and dedicated VoIP. In the dedicated VoIP solution, you are mostly responsible for installing, procuring, and maintaining both the software and hardware of the system. In other words, you have to take responsibility in some cases, even if it is minor. And that can be time-consuming and tedious sometimes.

On the other hand, a hosted VoIP solution doesn’t require you to be involved in any installation and maintenance work. Most of these works are handled by the service provider. So, you have to get a hosted VoIP from a reputed service provider that has an attentive and responsive team to solve any problem.

All the requests will be passed to the customer support team and you have to indicate your issue or direct them to the features that you want to enable. After that, you just need to sit back as everything will be taken care of by them.


According to a survey by

  • VoIP solution reduces the local call cost by 40%
  • And reduces the international call cost by 90% for any small organization 

That is what makes VoIP solutions more compelling. When it comes to comparing costs, one can save more with a hosted VoIP solution compared to a dedicated VoIP solution.

Dedicated VoIP is like an on-premise VoIP, where the server is dedicated. As a result, there are costs for setup and maintenance. In contrast, the setup and maintenance cost for hosted VoIP solutions is very low. The service provider is responsible for setting up, configuring, or installing any upgrades. However, they will charge a monthly fee for all these, which is greater than the monthly fee of a dedicated VoIP service.

The Bottom Line on Hosted VoIP vs. Dedicated VoIP

In the comparison between a hosted VoIP and a dedicated VoIP, the dedicated one offers superior Cloud Computing to SLA solutions. It is also better in terms of prioritization, reliability, and administrative control. Although it is also quite true for hosted VoIP, it is even better for general purpose use. Again, it may cost more to get dedicated VoIP depending on some factors (i.e. scalability).

— After considering hosted VoIP vs Dedicated VoIP, you get to decide which one is best for you. However, if your business requires real-time responses, if it requires deprioritizing resources arbitrarily, or if it can’t diminish performance for low resources; then dedicated VoIP is more convenient.

Russell H

I'm Russell, our go-to expert for VOIP softswitch server installation. With hands-on experience in deploying Sippy Softswitch, MVTS Pro, iTel Switch, and MediaCore Softswitch, he's the guru you can rely on. As a key contributor to, Russell simplifies the complexities of server setup, configuration, and troubleshooting, making the world of Voice over IP accessible to all.

Leave a Reply

Your email address will not be published. Required fields are marked *

VPSVOS Communications is a registered company in the United States of America. Registered Office: 19854 Michigan Avenue Brekford, CA 599780 USA.
OUR LOCATIONSWhere to find us?
Stay up to date with the latest news about VPSVOS Communication, events, special offers and more by connecting with our social media.
VPSVOS Communications is a registered company in the United States of America. Registered Office: 19854 Michigan Avenue Brekford, CA 599780 USA.
OUR LOCATIONSWhere to find us?
Stay up to date with the latest news about VPSVOS Communication, events, special offers and more by connecting with our social media.

Copyright © 2005 – 2024 VPSVOS All Rights Reserved.

Copyright © 2011 – 2024 VPSVOS All Rights Reserved.