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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VoIP: On-Premise vs Hosted (Cloud) vs Hybrid

voipIn our previous post we listed 5 reasons to migrate to VoIP. If you have made the decision to switch to VoIP, the next step is choosing between an on-premise, hosted, or hybrid solution.

Here’s the difference between the three:

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.

Get started on the Bicom Systems products page or sign-up for a FREE Account Manager to guide you in the transition to VoIP.