Hosted PBX vs On-Premise PBX
There are pros and cons of both hosted PBX and on-premise PBX. Moving to an IP-based PBX business phone system is beneficial regardless of which system is ultimately chosen, leading to a higher level of satisfaction for the company, employees and even callers.
Also called hosted VoIP or an Internet phone system, this is one where the provider, such as Avaya, is responsible for hosting the IP-PBX as well as handling the technology required to provide the services to the phone system. The desk sets will plug into wiring connected to a router at your location. Calls, signaling, and features are handled through an IP-PBX server at Avaya’s location. The provider of the hosted PBX charges a monthly fee that is inclusive of a “minutes” package and potentially certain features. Charges can be at a per-minute calling cost or unlimited minutes. 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. Extended features may come with additional cost.
This is referred to as an IP-PBX phone system, such as the Avaya IP Office. It is similar to a traditional PBX system that is in a computer equipment room or phone closet at your location. The signaling is done with an IP phone to the IP-PBX server using a LAN. Calls can go through a traditional phone company as well as through your Internet provider using voice over Internet (VoIP) and SIP trunking.
Hosted IP-PBX versus On-premise IP-PBX
Understanding benefits and limitations between the two options makes it easier to determine the best option for any particular organization. Cost, ability to expand, and other considerations are laid out to make it possible to compare the hosted IP-PBX and the on-premise IP-PBX within the same categories to learn of the greatest differences.
Purchasing an On-premise IP-PBX phone system involves buying hardware, which includes a server and IP phones. Hosted IP-PBX only involves purchasing IP phones and possibly a router and network switch.
Satisfaction is the most important aspect of choosing a system, regardless of whether it is hosted PBX or On-premise PBX. Positives and negatives for each system are laid out below.
The Bottom Line
There is no “Perfect Solution”. You need to work with a company that understands Voice and Data, and understands what you are trying to accomplish. And then PLAN. Lanstar Voice and Data is uniquely positioned to guide you through complexities of making this decision. Contact us now to see how we can help.
Whether you are considering an on-premise Voice Solution or Hosted solution, proper cabling is crucial to the operation of your system. And a sloppy phone closet can make changes very difficult.
Lanstar Voice and Data can provide cable runs to your stations as well as between floors. We offer Cat5 and Cat6 cabling as well as fiber optics. And when Lanstar does the cabling, we stand behind it. If we are installing your phone system and running your cabling, you will never have to worry about someone saying something like “It isn’t our problem, talk to your cabling company”. We will just take care of it. It’s just what we do.