Hosted Softswitch vs. On-premise Solution: Which Is Better?

The VoIP industry is filled with so much jargon. Many of them sound phonetic and are used as synonyms. On the other hand, many of them may appear obvious, but there are some really fascinating facts related to those terms that can change the whole business model. A hosted Softswitch and on-premise VoIP Softswitch solution are these types of terms. The providers often get confused in the selection process because they don’t really understand the advantages and limitations of hosted and on-premise Softswitch. 

What is a hosted Softswitch? 

When a class 4 or class 5 Softswitch solution is hosted on the cloud or server of a provider and you use it by paying the usage fee, it is called a hosted solution. 

What is an on-premise Softswitch? 

When the VoIP Softswitch solution is installed on your own cloud or server, it is an on-premise solution. In this case, you don’t need to pay for the usage of the system, but you have to pay for the software itself. 

Which is better? 

You might be in the process of selecting the right model to use the best class 4 and class 5 Softswitch solutions. You must be looking for recommendations on which one is better and that is explained in this article for you in brief. 

Cost 

The cost is often a huge factor because both 4 and class 5 Softswitch solutions are expensive due to the features and other components they offer. However, the hosted Softswitch is comparatively cheaper than an on-premise system. The reason is it does not include any cost related to the license, hosting, servers, etc. It only involves the cost of software usage as mostly, it is available as a rental solution. An on-premise system includes the cost of software, hosting, physical space to set it up, maintenance costs, etc. 

Features 

Both hosted and on-premise systems may have similar features. Depending on the software development company or service provider, the features may vary. The advantage of a hosted class 4 or class 5 Softswitch solution is that you don’t need to worry about upgrading features to stay competitive. The provider will take care of that aspect. However, in an on-premise system, you may need to make changes in the software or pay for the upgrade. 

Ownership 

A hosted solution is owned by the provider and you would never get ownership of the system. The advantage of an on-premise system is that you own the licensed version of the software. 

Concluding notes 

In conclusion, both hosted and on-premise Softswitch solutions have their own benefits and limitations. For startup companies or businesses with limited funds, a hosted solution is more beneficial than the on-premise one. It is also advantageous for companies that don’t want to get involved in technical aspects. 

ASTPP offers the best wholesale and retail VoIP Softswitch solutions with extensive features. You can also avail of ASTPP consulting services to choose the right switch for your business among on-premise and hosted Softswitch. To know more and avail of these services, please visit  https://www.astppbilling.org/contact-us/ 

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