Hosted Softswitch V/s On-Premise Solution

 To launch or to continue growing your business in the VoIP industry as a VoIP service provider, you will need the right Softswitch solution. Whether you use a class 4 Softswitch solution or a class 5 Softswitch solution, you have two options to choose from:

  1. Hosted Softswitch solutions

  2. On premise Softswitch solutions

Both hosted and on premise VoIP solutions have their own pros and cons. In this article, I will share a major comparison between both of them to help you choose the right software.

1. Setup and deployment

  • Your class 4 or class 5 VoIP Softswitch solution will be installed and set up by your hosted VoIP Softswitch provider if you use a hosted solution.

  • It will be hosted on the cloud of your provider and you don’t need to worry about buying this VoIP software and setting it up for your business.

  • If you choose to use on premise software solutions for class 5 and class 4 Softswitch software, then you will need to first buy your own cloud space or servers. 

  • In the case of an on premise solution, you will also be responsible for buying the Softswitch solution and installing it on the right platform.

2. Cost 

  • To use any VoIP solution, there are two types of costs involved: Capital investment and ongoing expenses.

  • If you choose to use on premise VoIP solutions for your business as a VoIP service provider, you need to invest a huge sum of capital because you need to buy the class 4 Softswitch solution or class 5 Softswitch solution. You also need to buy cloud space or servers. If you buy on premise servers, you will need a physical office and bare costs related to the same.

  • If you choose to use hosted Softswitch solutions, the only cost you need to invest in is the cost of using the VoIP Softswitch solution. You will neither need to buy software nor will you need to invest in hosting.

  • The on premise Softswitch solutions also need you to bear the cost of maintenance. 

  • On the contrary, the hosted Softswitch providers bear the cost of maintenance of the software. 

3. Scalability

  • The Softswitch solutions are used to handle massive call volume and aim to keep increasing the number of users and number of concurrent calls. In other words, it is a highly competitive business and the best VoIP service providers need VoIP software that is highly scalable. 

  • In the case of using on premise software solutions, you can scale up the software, but it needs considerable involvement in scaling up the software and related infrastructure along with the cost.

  • But, in the case of using a hosted system, hosted Softswitch providers will handle all intricacies related to scaling up the system. All you need to do is upgrade your existing package and pay an extra monthly usage fee for that.

4. Security

  • Security is often one of the major concerns of each and every VoIP service provider.

  • It is obvious that an on premise solution helps you keep your data confidential and private as you own the system.

  • Hosted VoIP Softswitch provider gives assurance of keeping your data secure and confidential.

Concluding notes

Having on premise or hosted Softswitch solutions needs you to consider different aspects before making the final choice. Both class 4 and class 5 VoIP Softswitch solutions are expensive platforms. Thus, using a hosted solution can make a huge difference in terms of expenses. Moreover, the hosted solution also has the advantage of fewer intricacies compared to on premise solutions because everything, from purchase to maintenance, upgradation, etc. will be managed by the hosted solution provider. 

The major advantage of on premise Softswitch is you own the solution and it adds a layer to data privacy and security. 

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