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A Comparison Between Managed vs Non-managed Phone Services

October 20th, 2023 | 4 min. read

By Jordan Pioth

Business man talking on phone whole working on a laptop

If your organization is using a poor-performing phone solution, it will negatively impact communication and the productivity of your employees.

This will also negatively affect customer relationships and can result in lost business if your phone service is not improved.

However, it can be difficult to select the right phone solution for your organization since there are many options to choose from.

Deciding whether to manage the solution internally or outsource this to a telecom expert is one of the important decisions that needs to be considered as part of this process.

If you are not familiar with the different phone solutions and which ones are the best alternative for your organization, you may end up purchasing one that does not meet your needs.

Coeo knows how important a reliable phone solution is for your organization and has delivered all types of phone solutions to thousands of organizations to improve their service.

We want you to understand the differences between managing your phone solution and having it managed for you so you can determine which alternative best fits your organization.

By the end of this article, you will understand the differences between managed and non-managed phone solutions, some examples of managed and non-managed phone solutions, and which one is best for your organization.

The differences between a managed and non-managed phone solution

If your organization is looking to purchase a new phone solution, it is important you understand the differences between a managed and non-managed alternative so you can determine which one is the best option for your organization.

The major differences between these two delivery models include:

Responsibility

The main difference between the two alternatives is the responsibility of who manages the phone solution.

A managed phone solution is managed by your phone provider and a non-managed solution is managed internally by in-house resources.

Control

When organizations choose to manage their phone solution in-house, they have full control of the solution to personalize it to their organization.

With a managed phone solution, your provider will manage the solution for you which can result in less control and personalization.

However, selecting the right partner will provide you with more control and personalization capabilities than less customer-service oriented providers.

Coeo, for example, allows its customers to customize their solutions to best meet the needs of their organization.

Cost

When it comes to the cost differences between the two alternatives, a non-managed phone solution is almost always going to be more costly than a managed phone solution.

The cost of both types of phone solutions depends on a variety of factors so your specific needs and your internal IT infrastructure will determine if one solution is going to be more expensive than the other.

With most non-managed phone solutions, your initial capital expense will be higher since you will be purchasing the hardware and other equipment you will need to install the solution internally.

However, the monthly costs will be lower since you will not be paying a provider to manage the solution although you will incur expenses to pay ongoing salaries and other operational costs for your IT team to manage your solution.

Conversely, a managed phone solution charges a set monthly service fee but enables you to save money by not incurring any costs, CapEx expenditures, or for an internal team to manage the solution for you.

Additionally, since your solution has a set monthly fee, it allows you to budget more accurately.

3 types of phone services

Now that you understand the differences between managed and non-managed phone solutions, here are three popular types of phone systems to consider depending on your preference for a managed or non-managed alternative:

1.    Hosted VoIP

A Hosted VoIP phone system is a managed solution where a provider hosts the phone system on their infrastructure and handles the maintenance, performs updates, and provides support for the solution.

Hosted VoIP also allows you to integrate the phone solution with other platforms and applications such as Google Drive, Dropbox, and Microsoft Suite allowing your employees to be more productive by integrating the platforms they use every day.

2.    UCaaS

Unified Communications as a Service (UCaaS) is a managed solution that combines multiple communication tools such as voice calling, video conferencing, and instant messaging into one solution managed by your provider.

3.    On-premise phone system

An on-premise phone system is when your phone system is not managed by your provider and is installed on the premises of the organization.

Your IT staff is in charge of managing and handling all updates for your on-premise solution. 

On-premise is essentially a way to deliver phone service so solutions like UCaaS can be delivered on-premise if it is required.

Is a managed or non-managed phone solution the right alternative for your organization?

Understanding the differences between a managed and non-managed phone solution will enable you to determine which option is best for your organization.

This will help you select the solution that is most appropriate for your organization and enable you to maximize your telecom objectives.

If your organization has limited IT expertise, an overwhelmed IT team that is busy working on multiple other priorities, or cannot afford the cost of purchasing the required equipment and managing it in-house, a managed phone solution may be your best alternative.

However, if your organization wants full control of your solution and has an IT team with the expertise and capacity to manage this, a non-managed phone solution may be the right alternative for your organization.

Determining the right phone solution for your organization

Now you understand the differences between a managed and non-managed phone system, three types of phone solutions, and whether a managed or non-managed phone alternative is best for your business.

This information will help you determine which phone solution your organization should use because no one wants to deal with a poor-performing phone solution that results in communication issues and a lack of productivity.

Coeo knows how important a reliable phone solution is to an organization and has delivered thousands of phone solutions to customer to improve their communication and productivity.

We want you to understand the differences between managed and non-managed phone solutions so you can determine which alternative is best for your organization.

If you would like to speak with our team to learn more about phone solutions or ask any questions you may have you can schedule an appointment.TALK TO AN EXPERT

Now that you understand the differences between managed and non-managed solutions and which one is the best fit for your organization, read this article to learn about cloud communication and the different solutions:

Jordan Pioth

When he's not creating content for Coeo, Jordan loves to watch sports, hang out with friends and family, and anything sneaker-related.