SIP Trunking vs. Hosted VoIP: Which Option Wins Out in Terms of Costs?

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Negosentro | SIP Trunking vs. Hosted VoIP: Which Option Wins Out in Terms of Costs? | When you are trying to make a business decision as to which phone system and features will best serve your needs you will be required to make a choice between SIP trunking and hosted VoIP.

One of the biggest challenges you face is the fact that there are numerous technical aspects that are hard to get your head around. These can make it difficult to comprehend when you don’t have a technical background. 

There is also the question of cost. What you can justify in terms of capital outlay and what you are getting for your money will prove influential in making your final decision as to which option you choose.

What does each option offer?

SIP trunking offers you a way to connect your existing IP-PBX to the PSTN using an Internet Telephony Service Provider. This is a virtual connection between your phone system and your chosen service provider.

A Hosted VoIP option is designed to provide a combination of PBX features together with calling functionality. Your chosen service provider will take responsibility for delivering all of the hardware and software requirements for your specific phone system.

Capital expenditure considerations

As you might expect, there are discernable differences between SIP Trunking and a Hosted VoIP solution.

It is not really that black and white when it comes to costs. Obviously, your available budget will have a bearing on your purchasing decision. But it is well worth remembering that one option might prove better for your business than the other, even if it involves more upfront costs.

If you are looking at SIP Trunking you will have to invest in an IP-PBX if you don’t already have that hardware. You will also need to invest in certain network equipment such as routers and a high-speed internet connection.

A hosted VoIP is designed to get you up and running with lower startup costs. You will need to have compatible VoIP handsets. In addition, you need to have the right network equipment like routers and an internet connection with high-speed connectivity. These items will need to be added to your capital expenditure calculations if you don’t have this setup currently, or your equipment needs upgrading.

Ongoing costs

You need to look beyond your initial capital expenditure when deciding between SIP Trunking and Hosted VoIP.

Generally speaking, SIP Trunking offers you a more cost-effective solution when you look at ongoing monthly costs. You have two options when it comes to how you pay for SIP Trunking on a monthly basis. You will normally be offered the option of a flat rate per channel each month. Alternatively, you might be offered a per-minute payment plan with no setup fees.

In comparison, your monthly VoIP charges will usually be based on how many users you have, the amount of calling minutes you use, and any additional features you have in your package.

The upfront cost of SIP Trunking might prove higher than a Hosted VoIP option, but your monthly costs will often be lower with the SIP option.

Talk to your service provider so that you can make an informed business decision based on what you need for your business and how the cost options suit your budget.

Negosentro | SIP Trunking vs. Hosted VoIP: Which Option Wins Out in Terms of Costs?

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