Hosted PBX vs On-Site PBX

pbxThe Hosted PBX vs On-Premise PBX debate is a recurring theme on this blog, so when we saw an elaborate infographic on just that topic we knew we had to share it here!

No Jitter shared a Hosted PBX or On-Site infographic with some great information. View the graphic here.

In summary:

Hosted PBX is a great option for SMBs, low budgets, or companies that do not want to dedicate time and resources to the phone system. Cloud PBX systems have lower costs, though they are ongoing as monthly payments. They are simple and easy to use and the provider will manage all maintenance, upgrades, and expansions. Read more about the benefits of Hosted PBX here.

On-Site PBX is a good option for larger enterprises or companies that need complete control at all times. An on-premise PBX is housed within the office and will involve more time and money up-front. Maintenance, upgrades, and expansion will be the responsibility of the company, but on-going costs will be relatively low. Read more about the benefits of On-Site PBX here.

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5 Reasons to Choose On-Premise PBX

on-premise pbxWe discussed some of the benefits of a Cloud PBX System in a previous blog post, so today we’ll discuss the benefits of choosing an On-Premise PBX system.

#1 OWNERSHIP

Traditionally, phone systems have always been purchased and owned. If this precedent has worked well for your business, there is no reason to change now. Owning an on-premise system gives control and peace-of-mind to the company. It is one more company asset that cannot be changed or taken away.

#2 CONTROL

Along the same lines as ownership, an onsite pbx system puts the control into the hands of the company. The in-house IT team can manage and customize the solution to fit current needs and even specific users. With all of the new features offered by VoIP, it only makes sense to have the control to use and change them as you wish.

#3 COST

While some companies will shy away from the larger up-front cost of an on-premise system, others will appreciate making a one-time investment. Unlike hosted systems, on-premise will not require monthly rent or other fees. On-Premise VoIP is less expensive than Legacy because it is software, rather than hardware, based.

#4 PARTNER RELATIONSHIPS

If you already have a good relationship with your providers there is no reason to change now. Your provider already has experience and knowledge of your company, users, and communication patterns. An onsite PBX solution allows you to stay with the same provider rather than start from scratch with a new vendor.

#5 IT TEAM

Companies switching from legacy to VoIP likely already have an experienced IT team in place. An on-premise system allows them to continue their current duties and carry the company through the transition to VoIP. Entrusting the new system to the current IT team will ensure a smooth transition.

In conclusion, there are many benefits to choosing an On-Premise Based PBX system. However there is a caveat; VoIP systems are inherently more complicated than legacy systems. They come with the advantage of an interface GUI to deal with this; however, the core skills to manage the network remain critical. The provider of your legacy system may not be familiar with these skills.

There are benefits to both On-Premise and Hosted systems depending on the needs of your company. To learn more, read 5 Reasons to Deploy a On-Premise Based VoIP System from Ziff Davis.

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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.

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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: