The Cloud Communications Experts

Disadvantages of Hosted

Disadvantages of a Hosted Phone System

While Hosted solutions are an attractive option to those looking to minimize up-front costs, there are considerable drawbacks and limitations with the system.

Total Cost of Ownership (TCO)

While having low initial costs is important, most businesses are even more concerned with the costs associated with owning and maintaining the phone system over the long term.

While it is true that the upfront costs associated with purely Hosted phone systems are very low, in the long run, the costs of having a Hosted phone system far exceed the costs of other phone systems. This is because you are paying a recurring monthly fee associated with each and every extension (even extensions that you rarely ever use) while with a phone system such as Hybrid-Hosted, there are 0 recurring monthly fees.

The longer you have a purely Hosted phone system, the higher your TCO becomes, and the worse your ROI is in comparison to a Hybrid-Hosted phone system.

All purely Hosted phone systems, regardless of its monthly price per extension, will always fail to matchup with a Hybrid-Hosted model when it comes to both TCO and ROI.

Smaller Feature Set

If an extensive feature set is your biggest requirement in your new phone system, a Hosted phone system is unlikely to be your best option. This is because Hosted providers generally don’t offer as many standard features and capabilities as they do with hybrid-hosted systems. While the features may be available, they are only provided at an additional cost.

Communications are Dependent on Your Internet Connection

With Hosted, your communications are completely dependent on your internet connection. If your internet connection stops working, your phone system will stop working as well.

This, as you may imagine, is a significant concern for businesses that have to be available literally at all times. While most businesses today feel as though they can rely upon their internet providers, this is still a risk that needs to be understood and considered.

Security of Call Data

The security of voice mail messages, call records, chat conversations, or any other form of communication that you typically save are kept in The Cloud with Hosted. While most providers ensure security for such things, some businesses may not be comfortable leaving their important info in the hands of another business.

Ready to Learn More About Hosted?

ArrowLearn What Hosted Is

ArrowDiscover all the Advantages of Hosted