Voice Over IP (VoIP) telephones are popular options for modern businesses, and they can offer huge advantages. For example, in one survey, businesses who had access to modern business phone systems with features (with Unified Communications solutions) reported a 49% increase in productivity.
In short, an on-premise business phone systems is typically for SMBs or Enterprises with available IT resources with the need for greater control over their business phone systems core functions, or want the flexibility of greater customisation with their business phone systems features and third party integration.
Hosted business phone systems are ideal for those companies who do not need a physical phone system on-site. There is much less installation involved, operation and maintenance costs involved with a hosted business phone system.