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Managed vs On-Premise — The Pros and Cons

When you’re considering an upgrade to your hotel’s phone system, you’ll come across references to “managed” services, “cloud hosting,” and “on-premise” service providers. These terms can be confusing, but we’re here to clear things up.

The Difference Between “Managed” and “On-Premise” Hosting

The key difference is in the arrangement of your technology and hotel communications systems. Managed service providers (MSPs), also called cloud services, are third parties like Phonesuite that set up your technology infrastructure, end-user systems, servers, and other hardware. For a monthly subscription instead of an upfront cost, an MSP handles the day-to-day monitoring of your hardware and software.

On-premise hosting means that you own all your hardware and host everything on the premises of your hotel. In some industries, like financial services and health care, regulations require that companies host their servers on-site to increase data security.

Pros and Cons of On-Premise Hosting

The most significant benefit of on-premise hosting is security — user data is hosted locally and less susceptible to security breaches, an important consideration for sensitive medical or financial information.

On-premise hosting also offers a potentially more reliable internal network. Managing the network internally removes the potential impact of service disruptions experienced when relying on an MSP.

However, on-premise hosting can be expensive. You’re responsible for financing the hardware, necessary infrastructure, IT staff, and regular system updates to maintain and support your PBX system, a potentially significant ongoing investment.

You’ll also be fully responsible for upgrading software and hardware, which can be a substantial additional cost every few years. Technology is continually evolving, and it can be challenging to keep up on your own.

Pros and Cons of Managed Services

For modern hoteliers, an MSP is the clear solution. Phonesuite’s solution, Managed VOICE, incorporates the best of on-premise and managed systems into one convenient package.

One of the most significant advantages is the cost savings. With Phonesuite, you’ll spend a low CAPEX followed by an affordable monthly OPEX. Phonesuite will also install and maintain all of the necessary hardware in your hotel at no additional cost.

Another advantage of Phonesuite’s system is flexibility. Our platform is open-architectured and evergreen, so it can be integrated into existing communications and customized to fit any hotel’s exact needs. And when it’s time to upgrade, Phonesuite offers lifetime hardware and software upgrades, without the need for another large CAPEX just to keep up.

We’ve also taken a unique approach to ensure reliability. Every Phonesuite system, whether it’s a hybrid on-premise-based account or a fully Phonesuite-hosted system, comes with network load balancing, analog backups, 4G failover, and POTS line failover. In addition, the on-site hardware required for both systems is the same, offering you the option of switching between an on-premise and cloud-based solution as you see fit.

Finally, Phonesuite offers a rapid call center, on-site support, and 24/7 monitoring — any technical issues that arise will be caught, addressed, and remedied as quickly as possible. We offer free moves, adds, and changes (MAC), free daily encrypted backups of all your systems and data, and a no-questions-asked warranty.

In today’s ever-changing technological landscape, you can’t afford not to be nimble and flexible when it comes to your communication solutions. Managed service providers — and Phonesuite — are your best option for keeping up with the crowd.


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