Hosted PBX

The Pros and Cons of Hosted PBX and On-Premise PBX

Hosted PBX and on-premise PBX are two different types of private branch exchange phone systems and they both have their advantages. The move to a PBX phone system offers a business many benefits, ultimately resulting in a better performing and more streamlined business. However, the pros and cons of both need to be taken into careful consideration before deciding on which way to go.

Firstly, lets take a look at the difference between the two.

Hosted PBX

Hosted PBX or VoIP is an internet phone system, which is hosted by a service provider. This means there are no installation, operation and maintenance costs to the user, as the service provider is fully responsible for managing the technology. All software and calls go through a router, which is handled via a server located at the service provider’s location. Most hosted PBX systems are charged at a monthly cost or a per minute fee.

On-Premise PBX

On-premise PBX or an IP-PBX phone system, as it’s also known, is similar to traditional PBX systems. However, on premise PBX requires on-site installation of PBX hardware within the businesses premises. IP phones signal to an IP-PBX server using a LAN. VoIP is available using SIP trunking and calls go through a traditional phone company provider. Asterisk-based systems are the most affordable for on premise PBX systems, due to the use of open source software.

Ok, so now we have a greater understanding of what hosted and on-premise PBX systems are, what are the pros and cons of using both?

Pros and Cons of Hosted PBX

  • Hosted PBX tends to be cheaper initially, as choosing an on-premise PBX phone system requires purchasing hardware.
  • The responsibility of running the PBX is down to the third-party.
  • You only need to purchase IP phones for hosted PBX, so the initial outlay is minimal.
  • There are no maintenance costs as this is all done remotely, which includes any upgrades.
  • New features can be added with any additional costs, as and when required.
  • No need to worry about any network issues.
  • However, staff training is the responsibility of the customer, as well as any on premise remote phones and network devices.
  • Hosted PBX offers low monthly service costs, that’s easy to add extra lines and features when required.

Pros and Cons of On-Premise PBX

  • On-premise PBX offers customers more control over their phone system
  • Initial costs are higher, due to the purchasing of software.
  • Maintenance costs are the responsibility of the customer.
  • After initial outlay, customers tend to get lower monthly costs.
  • Ability to integrate other company software programs i.e. CRM systems.
  • With on-premise the IP-PBX provider will install, program, train staff and qualify network.
  • Customers can get lower call costs through SIP trunking.
  • All data and settings are in the control of the customers.
  • Ideal for larger organisations, which already have the infrastructure to support and host their own phone system.

At Eden Telecommunications Ltd we can provide tailored engineering services or consultancy based on your current and growing needs. If you are considering having a hosted PBX or on-premise PBX phone system within your organisation please give us a call to discuss your requirements, and we will ensure to offer you the best possible advice on the options available for your business.