PBX
On-Premises PBX vs Hosted PBX: How to Choose
Voice over IP (VoIP) phones have become increasingly popular among modern businesses, offering several advantages for enhancing productivity. At Select Secure, we provide our customers with a comprehensive understanding of the pros and cons associated with on-premises PBX versus Hosted PBX. Our goal is to guide you towards making an informed decision based on your organization’s unique needs and preferences.
How do you know what option is best for your company?
In making this decision, one must consider the two main options: having the hardware on-site (all hardware is in a server room on location) or having a cloud-based system (phones connect to the data through the internet, referred to as the cloud). Our experts provide educational resources on the benefits of each option. Both options can be ideal for businesses of different sizes. Our team is available to answer any questions and provide guidance throughout the vetting process.
To determine the pros and cons of each option, a side-by-side comparison is the easiest way. Here is a breakdown of Hosted PBX and On-Premises PBX:
Hosted PBX Description
Phones connect to the provider through the internet. The provider hosts their equipment in a different location.
All UC features included:
On Premises Description
Your Server Closet serves as the host of the equipment.
All UC features included:
The cost of VoIP services is a crucial factor to consider. Here are the pros and cons:
Pros:
– Lower setup costs.
– No maintenance fees.
– OPEX model.
– Your provider shoulders all the risk, work, and complexity.
– Growth or retraction can happen quickly.
– Software updates automatically, ensuring an up-to-date system.
– All major software updates and maintenance processes are handled by the provider.
– Ability to allocate IT resources towards other revenue-generating tasks.
– Quick and easy setup.
– Reduced dependency on in-house IT resources.
Cons:
– Potentially higher ongoing service costs.
– More difficult to expand.
– Much more difficult to manage on your own.
– Lack of control.
– You do not have direct access to your server like your provider does.
– Need a solution provider to provide proper training as understanding is paramount.
Expansion in the Future
Pros:
Provider Takes on Risk, Work, and Complexity
Easy to Scale for Growth
Automatic Software Updates
Full flexibility and control to switch solutions or add additional solutions down the line.
Cons:
(None)
Additional expansions will lead to more complexity that will need to be managed appropriately.
Control
Pros:
The provider handles all the major software updates and maintenance processes.
IT resources can be focused on additional revenue-generating tasks
You can have complete control over every detail with our easy-to-use solution, carefully managed to provide a personalized solution.
Cons:
Service provider has the control of the system and you do not.
Implementation
It is imperative that internal IT staff handle software updates and maintenance processes or consider outsourcing. Below are the pros and cons of each approach:
Pros:
It offers a quick, cost-effective solution with less dependency on in-house IT resources.
Cons:
Users may require training that the solution provider may or may not provide.
In-house deployment:
Pros:
You will better understand your system’s capabilities by handling the deployment yourself.
Cons:
Deployment time may be longer, and users may require training that the solution provider may or may not provide.
Recommended For…
This approach is recommended for businesses looking to save IT costs, small businesses/start-ups without in-house IT resources, and SMBs or enterprises seeking control over their phone system or a more customized solution.