SIP Trunks or Hosted Business VoIP

When evaluating your business phone system, you may find yourself undecided between SIP Trunking and Hosted VoIP (sometimes also known as a Cloud PBX). While SIP Trunking has been around since the late 1980s, Hosted VoIP is a newer, cloud-based technology that can have a significant and revolutionary impact on your business communications.

In this guide, we will explain the differences between the two models, and help you decide which would best suit your business.

What is SIP Trunking?

At its core, SIP (standing for Session Initiation Protocol) Trunking is a method of business communication that sends voice calls and data over a broadband connection. It acts as a step-up, or a digital replacement for traditional analogue PSTN (Public Switched Telephone Network).

Key features of SIP Trunking

Utilises a physical PBX system (Private Branch Exchange) within your office space
Routes calls to your phone extensions internally
Connects multiple phone lines over the internet for external and internal communications.

What is an on-premises PBX?

This refers to a traditional phone system that is installed and maintained directly in an office. The hardware is on-site, and it connects all the phones within an organisation, routing calls, and managing things like voicemail and transfers. Essentially it is a private network specifically for the office it lives in,and is used for both internal and external communications. Each phone line requires a physical line installed in the office, which can make it expensive and complicated to expand your business.

What is Hosted VoIP?

Hosted VoIP (Voice over Internet Protocol) is a cloud-based communication solution that allows businesses to make and receive calls over the internet, eliminating the need for traditional phone lines or an on-site PBX. Since it is ultimately a phone system that is hosted in the cloud, all critical functionalities (such as routing, call forwarding and voicemail) are managed remotely by your provider, The service provider will also manage all maintenance, updates, and technical support, which means less hassle for your IT team and minimal downtime. It offers the flexibility for you to manage your phone system entirely online.

Key features of Hosted VoIP

No need for a physical PBX system as everything is hosted in the cloud.
Calls are routed through the internet, providing access to services from virtually anywhere with an internet connection.
Easily scalable, allowing you to add or remove users in just a few clicks.
Supports remote and hybrid work styles through apps, softphones, and other smart devices for flexibility
Supports ‘Bring Your Own Device’ (BYOD) schemes

Hosted VoIP vs. SIP Trunking - how do they differ?

Hosted VoIP (Voice over Internet Protocol) is a cloud-based service that can handle calls entirely online, which therefore eliminates the need for on-site PBX hardware. Let’s take a look at some of the key differences between SIP Trunking and Hosted VoIP, in some key areas of consideration for businesses of all sizes:

Feature	SIP Trunking	Hosted VoIP
Hardware	Requires a physical PBX in your office	No physical PBX is required, as it is based fully online
Scalability	Adding new lines is a manual process which requires engineers	Easily scalable process what can be done fully over the internet with no physical lines
Geographical flexibility	Workers will be tied to a physical location, and international calls can be costly	Calls are affordable no matter the destination, and employees can easily work from almost anywhere with an internet connection.
Installation time	Can take days or weeks, and each new line will take time to set up.	Can be set up in minutes, and does not require IT professionals
Cost	Higher costs both upfront an to maintain	Lower overall costs, less hardware expenses, cheaper calls
Business continuity	Dependent on PBX reliability, which can be inconsistent and art risk of blackouts	Much more reliable solution with load balancing cloud servers for disaster

Why choose Hosted VoIP over SIP Trunking?

When deciding between SIP Trunking and Hosted VoIP for your business, it is crucial to weigh the pros and cons of each solution. While both options offer robust communication tools, Hosted VoIP often provides a more flexible and futureproof solution for businesses of all sizes, as the above table shows.

While SIP Trunking may be a good option for businesses that want to maximise any existing infrastructure they possess, Hosted VoIP will offer a more agile, cost-effective and scalable solution that can grow alongside your business and adapt to changing markets and technologies over time.

Key Comparison: Hosted VoIP vs. On-Premises PBX

Feature	Hosted VoIP	On-Premises PBX
Location of Infrastructure	Cloud-based, managed by provider	In-house, managed by your business or IT professionals
Upfront Costs	Low, minimal hardware, costs based on amount of users	High, requires PBX equipment and installation
Scalability	Easy and fast, online configuration through portal	Difficult, requires new hardware for each new line
Maintenance	Handled by service provider virtually	Handled by in-house IT team
Reliability	High redundancy with cloud servers	Dependent on local infrastructure
Flexibility	Can be accessed from virtually anywhere with an internet connection through apps	Tied to office infrastructure, remote work is difficult to facilitate
Technical Support	Comes from the provider's support team	Must be handled internally / on site

What if you already use SIP Trunking in your office?

If you’re currently using SIP Trunking with a PBX system installed in your office and are apprehensive about switching, there’s no need to worry! Our Hosted VoIP solution can seamlessly integrate with your existing on-premises PBX. This will give you the best of both worlds - the familiarity of your current setup, with the added flexibility, scalability, and cost-efficiency of a cloud-based solution.

However, if your business is still on an ageing PSTN line and you are undecided between SIP Trunking and Hosted VoIP, it would be beneficial to move to a Hosted VoIP system. This not only future-proofs your business in light of the upcoming PSTN switch-off, but also offers a host of additional features that a POTL cannot offer, which make it an ideal choice for modernising business practices.

Get in touch to learn more about how hosted VoIP can beneft your business.