A managed or hosted voice service is an attractive model for businesses, particularly small to midsize companies - mainly because they don't necessarily have the same in-house expertise as larger enterprises. Generally, a managed solution requires on-site equipment, whereas a hosted solution is hosted at the service provider's location.

There are several benefits for using a managed or hosted VoIP/IP telephony service. Rather than a heavy up-front cost, a monthly service fee is billed over the course of the contract. And, rather than the internal IT staff taking care of the day-to-day management of the service, the service provider will take care of the maintenance for you. This allows your staff to focus on more strategic priorities.

Regardless of whether you choose a managed or hosted service or a traditional arrangement, it is important to build a detailed cost assessment with your provider from the start. Cost savings are not a sure thing when using a hosted/managed solution, however; it is possible that it can be cost effective compared to a traditional deployment. The best IP telephony solution for you depends on your needs and goals for your business. Discuss with your service provider and explore your options.