Last month we learned what exactly “PBX System” means and some of the different deployment options. The two most common options – and hardest to choose between – are on-premise IP PBX and hosted or cloud IP PBX.
On-premise solutions are owned and managed by the user. The physical IP PBX is stored on-site and all of the technology is set-up and maintained in-house.
Hosted or cloud solutions are rented out by a service provider for a monthly fee that covers service, maintenance, and upgrades. The user needs only IP Phones that connect to the cloud PBX system via Internet.
Both are good options depending on the size and type of your business.
Let’s look at the benefits of each system:
On-Premise IP PBX System
No monthly fee
More control over the solution
No reliance on a service provider
Can integrate with other solutions
May have more features
Hosted or Cloud IP PBX System
Low or no up-front costs
No additional maintenance or upgrade costs
More flexible and scalable
No need for IT expertise or personnel
Less employee training needed
Advances in technology will come in automatic upgrades
Clearly both systems have benefits and drawbacks. In general, hosted deployments are better for SMBs, organizations limited by budget, or companies expecting to grow in the future. On-premise systems make sense for very large companies that are prepared to own and support their own PBX.
On-Premise VoIP is a good option for larger companies that want more control over their telephony solution. While some companies will benefit from managing their system in-house, smaller companies may not have enough staff or budget for this option. On-Premise VoIP involves a large up-front investment, but then the system belongs to the company.
Hosted (Cloud) VoIP is the opposite of on-premise. The system is owned and managed by a Service Provider company that rents it on a monthly basis. This is a better option for smaller companies that do not have a large up-front budget or a large IT staff. Cloud VoIP is less expensive in the beginning, but may be more expensive in the long run due to monthly payments.
Hybrid VoIP is a combination of the above two options. A typical hybrid VoIP solution would mean a hosted system run on a premise server and hardware. This brings in the best of both worlds and is an attractive option to growing companies that have some money to invest but do not want to purchase and manage an entire system.
Which option is right for your company? We recommend you do research a variety of solutions and Service Providers to find the best match for your company.
As a developer and network engineer, understanding the way today’s hosted phone systems works is a fairly easy task. Yet such a profile is not found in every person that is willing to start in this business. In general, there are two profiles that look to start in this business more often: