Knowledge Base - Hosted VoIP vs. SIP Trunk - what's the difference?

People often use the two terms interchangeably - but they mean significantly different things.

Hosted VoIP is a complete phone system. This could include (depending on your services) features such as logging, voicemail to email, faxing, auto attendants, and more. All the things that are not simply the ability to place or receive a call.

A SIP Trunk is the digital equivalent of a phone line. A SIP Trunk can include one or more channels and can be programmed to work in one direction or both - for local or perhaps only for long distance or only international. The logic associated with a SIP Trunk and all the applications (like call routing, data storage, logging, voicemail, etc.) are all part of the phone system which you have in your premise. This unit might connect to one or more providers to access the desired services as determined by the people managing the system.

A SIP Trunk can be enhanced in some situations. For example, we could provide backup options if your phone system or internet was unreliable. Those features are already built into a Hosted VoIP system.

What about cost differences?

Hosted VoIP agreements are normally based on the combination of the users and features whereas SIP Trunks are billed based on the number of channels or aggregate minute volume of calling. With an existing phone system, migrating to SIP Trunks can provide savings while leveraging existing hardware. When the system fails or you change locations, transitioning to Hosted VoIP will enhance performance with new features and virtually eliminate maintenance. Contact us using the form below to help you chose the option that's right for you!