What is the difference between a Hosted VoIP product and a SIP Trunk VoIP product?

I decided to place a poll on my web site and at last count it was split 50/50 as to who knows the difference. We have 500 small to medium size hotels that we provide telecom services for, but I knew there had to be a way about a year ago to put them on a VoIP solution without having to replace every room phone with an IP telephone. The costs involved would be astronomical So off to work I went looking for the best program out there. I attended the Channel Partners Conference in Washington, DC and went from booth to booth looking for this product.

I explained that the properties wanted to utilize their existing PBX systems, but take advantage of the calling features and cost savings of VoIP. Let's face it over the years I've become accustomed to people looking at me as if I am from another planet. In fact I do live in another world, My World. Anything is possible in "My World," you just have to believe to succeed and my permanent restraining order to always remain a minimum of 15 feet away from inside the box doesn't impede upon my existing world either. With that being said I carried on......and on....and on in my search for SIP Trunk VoIP.

I had a systems engineer tell me from a large provider that "it's just not possible." I had all this fancy literature all these new found connections if I wanted to get in the box with everyone else, but I kept moving forward. I then came across a man working at a booth for a provider and we started shooting the breeze and I told him what I was up to and that no one can provide this service. He had a colorful metaphor to say and at that point I was filled with hope again. However when he introduced to the V.P. of Agent Channels for the company he was representing I thought I was in the clear to lay out my deal for them. 500 hotels is not chump change so I was full of confidence until the V.P. told me that wasn't, possible. I played it cool to never close a door, but I quickly made a departure.

Of course the man who told me it was possible I later ran into him again with a beer in hand he told me they just don't know "colorful metaphor" it can be done and confirmed my thought. He proceeded to go through the process of how it can be done.

SIP Trunk VoIP can be deployed from companies existing PBX system directly if it is IP enabled. If not a gateway is installed that converts the traditional POTS line to VoIP. In layman's term

SIP Trunk VoIP is best suite for small businesses that want to deploy telephony phone service while utilizing their existing PBX phone system. If their PBX is not IP enabled a gateway is installed on the premise on the PBX and converts all calls from traditional phone service to VoIP. This type of VoIP service can drastically decrease company phone bills by as much as 40-70%.

Hosted VoIP is best suited for companies that need a new phone system. The phone system is taken off premise and hosted in a secure facility. Users access the administrative calling system via an online portal system. I have listed reasons why businesses would opt for a Hosted VoIP PBX:

Cost savings on long distance, monthly access costs and equipment

IP applications that improve employees' communications, productivity and capability

Existing communications system is at end of lifecycle

Limited growth or expansion capabilities

Changing or adding locations

Standardization of equipment & features across multiple locations

Reduce costs of maintenance, upgrades and growth

Improve MAC (move, add and change)

VoIP providers do not necessarily need to offer SIP Trunk VoIP as part of their product line, but to train their employees as to the differences can be beneficial to everyone involved. I have found those who deploy SIP Trunk VoIP are out of the box thinkers and really know their network capabilities. Many of them merge a little of each system and have come up with the ultimate calling plans.