If you were expecting a knockout of the Hosted PBX or the On-Premise PBX, we’re sorry to disappoint. Unfortunately, neither of the two wins this battle cause it all narrows down to which PBX better suits your business needs. But before we go into what a Hosted PBX or an On-premise PBX can do for your business let’s first define what each one is.
What’s a Hosted PBX?
A hosted PBX is a Private Branch Exchange (a.k.a. phone system, unified communications solution) which is not located within your physical office. Without losing any control of your phone system a hosted PBX allows you to remotely host the PBX software in the cloud. The hosting itself could be offered by the PBX vendor of a third-party hosting provider.
Hosted PBXs are perfect for SMBs who do not have the infrastructure or the internal resources and know-how to manage and maintain the PBX themselves.
Pros of a Hosted PBX
- Lower or zero set-up cost, no hardware required
- Providers manage & update the system
- Easily add virtual numbers
- Easily move the phone system – no data hardware to manage
- Loss of internet does not affect business operations – provider can send calls to voicemail
Cons of a Hosted PBX
- Call quality depends on internet connection
- Network qualification is performed by the organization
- Customization depends on provider
- Stability of provider is not guaranteed
What’s an On-Premise PBX?
An on-premise PBX is exactly what the name entails. A PBX that is installed on-premise, i.e. physically in your office building. On-premise PBXs are deployed on servers that belong to the business and are managed by the business itself. Therefore, any business choosing to use an on-premise PBX should first ensure that they have the required infrastructure in place, such as servers, network, devices etc.
On-premise PBXs are better suited for large organizations which have the infrastructure, resources and know-how to configure and manage internally.
Pros of an On-Premise PBX
- User has full control over the PBX
- All data and information are in the user’s hands
- Can use current phone carrier
- Simple tasks can be done without PBX provider, i.e., adding users
- Use SIP Trunks to save on calling costs
Cons of an On-Premise PBX
- More expensive to setup and configure
- Requires dedicated and trained team to manage
- User is responsible for maintenance and updates
- Requires physical office space
- Failure will stop business operations unless a reliable SIP provider is used
And there you have it! The winner of the Hosted PBX vs On-Premise PBX battle is entirely up to the needs of the organization.
3SIP Services offer both a Hosted PBX solution as well as an On-Premise one. Both options are scalable and give businesses flexibility and a complete set of features. Check them out for yourself and let us know if you need any further help in deciding which option is best for you.
