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.


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:

Hosted IP PBX Solutions

As hosted IP PBX solutions take over the industry and replace and outdate other options, PBX resellers are faced with a unique opportunity; now is the time to begin offering hosted IP PBX solutions and claiming a niche in the market.

Many resellers have merely tweaked their current systems to allow for a hosted option, leaving much to be desired. Resellers that offer complete hosted systems fulfill a specific need in the market that has yet to be fully met. Now is the time to take advantage of this gap in service and begin offering complete hosted solutions that end users can rely on. Whether you are just getting started or wanting to upgrade to newer technology and solutions, Bicom Systems has the software and resources to get you started. With ample experience in the field of hosted solutions, Bicom Systems will provide you with software, hardware, marketing materials and an Account Manager to guide you.

Bicom Systems’ PBXware is the world’s first and most mature professional open standards turnkey telephony platform. Available in Business, Call Center, and Multi-Tenant, editions, PBXware allows you to deploy flexibly, reliable, and scalable hosted IP PBX communication systems.

Offering a true hosted IP PBX system provides End Users with a number of benefits:

– Managed service with pre-defined service agreements
– Remote management
– Cost effectiveness
– Future proofing
– Predictable monthly service charges
– Voice integration
– Customization

Learn more at www.bicomsystems.com or contact us today at sales@bicomsystems.com to claim your spot in the hosted IP PBX market. Or to learn more about how we’ve help other companies, check out our Case Studies.