Hosted PBX vs On-Premise PBX

hosted pbx vs on premise_november2

Phones play a vital role in business operations. They allow you to communicate with coworkers, partners, and customers alike. Because of their importance, phones are a major investment and choosing the right solution can have a big impact on your business. One of the most popular types of telecommunication tools available on the market today are private branch exchange (PBX) phones. This kind of phone can be provided as either a hosted or on-premise solution.  

Hosted PBX vs On-Premise PBX System

A PBX system can come with two options: hosted or on-premise. Both choices come with unique positives and negatives that can benefit your organizational operations. To get the most out of your phone service, it’s necessary to pick a communication solution that aligns with your business goals. Before you make that decision, however, let’s first go over how these two options differ. 

  • On-premise: An on-premise PBX is similar to a traditional PBX in that the system is located at your physical location. The main difference between the two is that internet protocol (IP) routing is done with an IP phone to the IP-PBX server using a local area network (LAN). Calls can go through a traditional phone company, but calls can also be made through voice-over internet protocol (VoIP). 
  • Hosted: Also known as hosted VoIP, this is a solution where your phone system is located off-site, housed by a third-party provider. From maintenance to updates, the vendor is responsible for the management of your technology.   

Hosted vs On-Premise System: Pros and Cons

Now that you know the difference between PBX vs VoIP, it’s time to explain the advantages and disadvantages of both services. Understanding benefits and limitations can make it easier to determine the best option for your organization.

  • Pros
    • Since hosted systems are owned and housed by your provider, there’s no need to purchase your own hardware. Meaning lower initial equipment cost and set-up costs.
    • On-premise gives you more control over your system.
    • Your provider is responsible for the management of your hosted system, so you avoid maintenance costs.
    • On-premise offers a high level of scalability.  
    • When you need to add new lines, a hosted solution can easily scale to the needs of your operations.
  • Cons
    • Due to the need to purchase equipment, an on-premise solution comes with high initial costs.
    • Hosted is an ongoing service that requires you to pay a monthly fee.
    • Adding new lines to your service is more difficult with an on-premise solution

Get the Right Phone for Your Business

CCT Telecomm is here to simplify your approach to communication. As your partner, we can evaluate the needs of your business and determine if a hosted or on-premise PBX is right for your operations. In addition, we also provide our customers with the choice to rent or lease a phone solution. 

If you’d like to learn more about our services, contact us today.

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