Non-Hosted VoIP
Non-hosted VoIP (also known as on-premise VoIP) means you have the hardware to make calls on your premises. You own the equipment and are responsible for its maintenance. One of the drawbacks of an on-premises system is that the number of users is limited by the amount of hardware on-site.
 
Hosted VoIP
With hosted VoIP, you don’t have any equipment on-site. It is hosted in the cloud, so you can access it from anywhere. Calls made with a hosted VoIP system pass through your provider’s server. 
 
On top of making and receiving calls, hosted VoIP offers a wealth of enterprise-scale solutions and features such as call screening, conference calling, video conferencing, auto attendant and call routing, voicemail-to-email transcription, and toll-free numbers.