Is Hosted VoIP better than a standard PBX? Or will an on premise PBX be better suited for your business requirements?
The Hosted vs. On premise argument is fascinating and there's no clear victor. Whether you should select one or the other for your organization depends to a large extent on your VoIP/ PBX requirements. To take this crucial decision, it is extremely crucial that you comprehend the differences between these options.
What is a Hosted Solution?
As the name itself indicates, Hosted VoIP solutions use a third party to provide 'hosting' abilities. As a user, you do not need to worry about the space and cost of installing the PBX system in your premises.
The greatest advantage of hosted solutions is they have minimal set up and activation prices. Hosted PBX phone services are considered as the perfect business solution for small companies and SOHOs.
What do we mean by On-Premise PBX?
An On-Premise PBX can be old-fashioned or one that incorporates VoIP technology. As a business, you need to purchase the hardware and the PBX hardware resides in your premise. Since a third party does not host it, an premise-based PBX has major consequences related to price and space.
Furthermore, you're accountable for the maintenance of the PBX system as well.
Cost Comparison
Hosted PBX solutions have lower setup and operational costs as compared to the one that takes up space in your office. There are many hosted VoIP providers which enable you to enjoy Hosted VoIP services for as low as less than $20 per month per user.
In contrast, there's a major up-front price included with a standard PBX, commonly in the tens of thousands of dollars. Furthermore, you'll probably need to incur additional care expenses on a periodic basis as well.
Premise Based PBX is no match for the hosted alternative as far as cost effectiveness is concerned.
Scalability
Most Hosted VoIP providers can scale your VoIP system in a matter of seconds. User administrators are often given access to easy-to-use web interfaces that enable them to add additional users and extensions. Contrary to this, PBXes can be a nightmare in terms of scalability, determined by what type of hardware you have. You may must buy additional lines, get them configured to work with your VoIP PBX and even test them before you can use them. This implies that you will likely need someone to come in to do all this work for you, meaning you will fork over more cash every time you add/subtract users.
Hosted VoIP alternatives can be scaled in hassle-free way by contacting your hosting provider. Scaling an on-premise PBX can occasionally be a daunting task.
Maintainability
Since there is no on premise equipment for a Hosted VoIP solution, it has minimal (often zero) maintenance prices. You not only save on cash but also on space and time as well.
Maintainability is a challenge for routine PBX solutions. You have to hire a dedicated PBX Administrator to manage the PBX option if you do not already have an IT person. Also, you should ensure there aren't any downtimes and outages/ issues must be fixed immediately.
Hosted VoIP beats PBX hands-down in terms of maintainability.
Control & Flexibility
The On Premise PBX offers a higher degree of control and flexibility to an organization. Since the PBX is managed in house, you have control over what features can be used and by whom. If you want to add a new feature, you may do so without having to approach a third party.
Hosted VoIP solutions also offer flexibility in terms of features and settings. As mentioned earlier, some suppliers lay it all out in an easy to use web portal, where you can configure attributes as you please. However, you will not get the flexibility to make full customizations or add any attributes not already supported. You depend on your hosted VoIP supplier for upgrades.
On Premise PBX offer more control and flexibility as compared to Hosted VoIP alternatives.
Wrap-Up
Having compared Hosted VoIP and the on-premise PBX head-to-head on various metrics, we come back to the same question - Which works better? The answer depends upon an organization needs. Hosted VoIP is the way to go for SOHOs and small businesses. Companies that need complete customization of their communications system( with the deep pockets ) can choose the assumption established PBX.
Like most problems with lots of alternative options, there's no clear cut answer. Whether you decide to go with a hosted IP PBX / hosted business phone system or a conventional on-premise PBX depends on your budget, and your work surroundings.
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