Hosted PBX vs Traditional On-Premise PBX – Which is Best?

If you had worked with communication systems nearly 25 years back, you know about operators searching for switches, hubs, analog levers including plugs to establish calls. Nowadays, enterprises make use of modern equipment consisting of phone lines with multiple extensions instead of numerous individual lines.

The question is that whether you require Hosted PBX or traditional on-premise PBX solution. If you employ a PBX system, then you can avoid the need for costly equipment from your premises by considering Hosted PBX.

Why you should consider Traditional On-Premise PBX

If you integrate a conventional on-premise PBX, you have more control. The main reason is that the phone lines, extensions, and hubs are under the direct control of the management. You can make purchase decisions when it comes to the equipment and other accessories.

In the case of a traditional on-premise PBX, you can modify the system as needed depending upon the complexity of your business. To add additional phone lines, you need to purchase a primary rate interface (PRI) for enhanced efficiency. You may be able to integrate the PBX with your existing CRM platform based on available options. The on-premise PBX is the best option for those enterprises with a massive centralized workforce with 50+ extensions.

When to avoid a Traditional PBX

The main problem with a traditional PBX is that you are responsible for dealing with maintenance and repairs. If the PBX system fails, then you typically have to request support from your supplier, unless you are capable of in-house support.

Sometimes, the spare parts may not be available and will be sourced from the supplier. Hence, you could experience downtimes. You can hire a dedicated staff for dealing with PBX but if the system doesn’t fail then, you will end up paying the unnecessary salary for the staff.

If you own an on-premise PBX you have to pay extra charges for repairs beyond the warranty period and this could prove costly. The repair cost will be more than what you invest to purchase the PBX. Furthermore, you have to pay setup charges including finding additional space for placing the equipment.

When to opt for Hosted PBX

Hosted PBX will be optimal if your company functions in several locations around the world. If your employees are working remotely, you have to make use of a hosted PBX solution to consolidate the telephone extensions under one single umbrella. Moreover, the provider will rectify the faults arising out of power interruptions including regular backup of data and systems. Last but not the least, the cost can be reduced to a large extent (up to 80 percent) by adopting a hosted PBX. You can pick a provider who offers excellent support alongside competitive rates.

What you should consider about Hosted PBX

Even though the initial setup fees will be less for a Hosted PBX, the recurring charges could be high. For instance, you could pay up to $100 to purchase a hosted solution but you could end up paying $350 at the time of renewal. If you need to add extra extensions, then you may have to pay more per extension.

The learning curve involved with the Hosted PBX is high since you need to learn the user interface of the system software.

Why Hosted PBX is better than traditional on-premise PBX

Hosted PBX helps you to avoid equipment costs. You need not have to worry about the purchase of wires, switches, and boards. The entire work will be done by the company which hosts your system. If you purchase a managed hosted PBX system, the company will provide all assistance. When it comes to the conventional on-premise PBX, you have to deal with the purchase of all the required components, which will be costly to maintain and repair in the long run. If you want more control, you can buy an on-premise PBX but you have to manage the system on your own. However, you have to carefully buy a PBX solution depending upon the requirements of your company.