On-Premise vs. Cloud IP PBX Systems

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.

cloud ip pbxOn-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
  • Long-term investment
  • 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.

PBXware is an example of a hosted IP PBX solution. Learn more on our website.

More posts like this one:

What is a PBX System?

PBX System (Private Branch Exchange System) is a telephony solution that connects internal users to one another and to an outside PSTN telephone line. PBXs are used within organizations or enterprises to simplify communications and lessen costs.

pbx

As with all technology, PBX systems have evolved with new trends. IP PBX uses Internet Protocol or VoIP technology to make PBX systems more feature-rich, scalable, and affordable.

PBX systems are available in two different delivery formats: on-premise or hosted/cloud. This gives us several combination options:

  • On-Premise PBX
  • Hosted PBX
  • On-Premise IP PBX
  • Hosted IP PBX
  • Hybrid PBX
  • Hybrid IP PBX

We will explore the differences between some of these PBX solutions in our next post: On-Premise vs Cloud IP PBX Systems.

In the meantime, visit our website to learn about a real IP PBX System or read some of our related posts: