There are pros and cons of both hosted PBX as well as on premise PBX. There are some fundamental differences to each of the systems and they feature advantages that should be known prior to making a decision on one or the other. The move to an IP-PBX business phone system is beneficial regardless of which system is ultimately chosen. However, there are differences and knowing those leads to a better VoIP phone system and a higher level of satisfaction for the company, employees and even callers.
Open source systems, such as Asterisk, are responsible for driving down costs for VoIP providers and manufacturers. This provides users with the ability to get the latest technology with many more features at a lower cost than what was traditionally available.
Hosted PBX or hosted VoIP, otherwise known as an Internet phone system is one where the provider is responsible for housing most of the equipment as well as handling the technology required to provide the services of the phone system. The desk sets will plug into a router and the calls, signaling, and features are handled through an IP-PBX server at the provider’s location. The provider of the hosted PBX chargers a monthly fee that is including of a minutes package and potentially certain features. Charges can also be done at a per minute calling cost. Either one can be affordable depending on the rates. A company that knows the amount of minutes spent on the phone in a given month can make effective cost comparisons.
On premise PBX is also known as an IP-PBX phone system. It is similar to a traditional PBX system that resides at a location, such as a computer equipment room or phone closet. The main difference is that IP routing is used with later technology. The signaling is done with an IP phone to the PBS server using a LAN. Calls can go through a traditional phone company as well as voice over Internet (VoIP) using SIP trunking. Gateway cards are used to connect the system to the provider. The provider is likely the one that already provides service, though a SIP trunk can be configured for use with an Internet service telephone provider (ISTP). An Asterisk based system is the most affordable option for on premise PBX due to the flexibility that is offered for open source.
There are some differences between the two options. Understanding benefits and limitations makes it easier to determine the best option for any particular organization. Cost, expansion, and other considerations are laid out to make it possible to compare the hosted PBX and the on premise PBX within the same categories to learn of the greatest differences.
Purchasing an on premise PBX hone system involves buying hardware, which includes a server with the proper number of interface cards to be able to connect the telephone company with the IP phones. Hosted PBS only involves IP phones, though a router may be needed to ensure there is one specifically dedicated to VoIP.
IP phones can be identical regardless of layout. For example, the 12 Polycom 550 SoundPoint IP phones can be used in on premise PBX phone systems as well as hosted PBX systems. The other equipment, such as server, software, and routers can be very specific for the individual system. $3,000 to $5,000 is typical for purchasing a server with the necessary software and cards. Ongoing server maintenance with hosted PBX will be the responsibility of the provider, which if purchasing for an on premise PBS, the cost would become the burden of the owner.
There are costs to consider for expanding. Adding more phones to an on premise PBX is as simple as purchasing more IP phones, unless any kind of additional licensing is required. ...
Open source systems, such as Asterisk, are responsible for driving down costs for VoIP providers and manufacturers. This provides users with the ability to get the latest technology with many more features at a lower cost than what was traditionally available.
What is Hosted PBX?
Hosted PBX or hosted VoIP, otherwise known as an Internet phone system is one where the provider is responsible for housing most of the equipment as well as handling the technology required to provide the services of the phone system. The desk sets will plug into a router and the calls, signaling, and features are handled through an IP-PBX server at the provider’s location. The provider of the hosted PBX chargers a monthly fee that is including of a minutes package and potentially certain features. Charges can also be done at a per minute calling cost. Either one can be affordable depending on the rates. A company that knows the amount of minutes spent on the phone in a given month can make effective cost comparisons.
What is On Premise PBX?
On premise PBX is also known as an IP-PBX phone system. It is similar to a traditional PBX system that resides at a location, such as a computer equipment room or phone closet. The main difference is that IP routing is used with later technology. The signaling is done with an IP phone to the PBS server using a LAN. Calls can go through a traditional phone company as well as voice over Internet (VoIP) using SIP trunking. Gateway cards are used to connect the system to the provider. The provider is likely the one that already provides service, though a SIP trunk can be configured for use with an Internet service telephone provider (ISTP). An Asterisk based system is the most affordable option for on premise PBX due to the flexibility that is offered for open source.
Hosted PBX Versus On Premise PBX
There are some differences between the two options. Understanding benefits and limitations makes it easier to determine the best option for any particular organization. Cost, expansion, and other considerations are laid out to make it possible to compare the hosted PBX and the on premise PBX within the same categories to learn of the greatest differences.
Costs
Purchasing an on premise PBX hone system involves buying hardware, which includes a server with the proper number of interface cards to be able to connect the telephone company with the IP phones. Hosted PBS only involves IP phones, though a router may be needed to ensure there is one specifically dedicated to VoIP.
Hosted PBX:
- Lower equipment cost and set-up cost
- Minimal maintenance costs, if any
- Low monthly service cost
- Easy to add extra lines
- Upgrades and new features are included
On Premise PBX:
- Higher initial cost and set-up cost
- Higher maintenance costs
- Lower monthly cost after expenses are covered
- Ability to SIP trunk to get lower cost calls
IP phones can be identical regardless of layout. For example, the 12 Polycom 550 SoundPoint IP phones can be used in on premise PBX phone systems as well as hosted PBX systems. The other equipment, such as server, software, and routers can be very specific for the individual system. $3,000 to $5,000 is typical for purchasing a server with the necessary software and cards. Ongoing server maintenance with hosted PBX will be the responsibility of the provider, which if purchasing for an on premise PBS, the cost would become the burden of the owner.
Expansion Costs
There are costs to consider for expanding. Adding more phones to an on premise PBX is as simple as purchasing more IP phones, unless any kind of additional licensing is required. ...