On-Premises
Located at your site, an on-premises VoIP system provides the most control for your telecommunications needs and the monthly cost is often less than a hosted solution. In an on-premises VoIP environment, all of the telecommunication features can be available from the start or added as you need them. If your dealership wants to maintain control of its telecommunications infrastructure, an on-premises VoIP solution can be a sound choice.
Hosted
In a hosted VoIP environment, the only tangible equipment your dealership invests in are the phones. The provider is responsible for delivering service to all of the devices, including those in remote locations – one of the distinguishing factors between on-premises and hosted VoIP. Because hosted VoIP lives in the cloud, the investment in hardware and software, including maintenance, is taken care of by the service provider instead of you.