HOSTED PBX Vs ON PREMISE PBX
Which system is best suited for your business
When it comes to choosing between hosted and on-premise phone system, it is best to gain an understanding of both. This will allow you to make an informed decision in selecting the right solution for your business needs. There are advantages to both system types, however, the move to an IP-based business phone system of either type is always beneficial. Ultimately suitability and satisfaction are the most important aspects of choosing a system, regardless of whether it is hosted or on-premise.
What is a Hosted Phone System?
Hosted Phone Systems or Hosted VoIP, otherwise known as a Cloud Phone System, is one where the provider is responsible for housing the phone system server, as well as handling the technology required to provide the services to your phones. Your desk phones plug into a router so calls and features are handled through a server at your provider’s location. The provider of the Cloud System charges a monthly fee that is inclusive of minutes and features. Cost savings come from reduced (sometimes zero) call charges and no physical line rental. Enhanced features may come with additional costs.
What is an On Premise Phone System?
An On-premise PBX is also known as an IP phone system. Similar to traditional ISDN based systems, a server sits at your business premises, typically the comms room, where your other computing equipment is kept. All the calls and features are handled by this server on site. Calls can go through traditional phone lines as well as over the Internet. With an on-premise system, you would pay a fee upfront for the server hardware, and then a monthly fee for services such as lines and calls.
Advantages of Cloud Phone Systems:
Licencing is based per user, so it is simple to understand.
Ease of installation. A desk phone is sent to you to plug into your broadband connection.
Upgrades to server hardware are all taken care of by the supplier, with little to no downtime.
Loss of Internet, power on-site, or catastrophic event has no effect on operations as calls can be redirected or to mobile applications. Overall Cloud Phone Systems have the most resilience vs On Premise Systems.
Advantages of On Premise Phone Systems:
VoIP trunks can be added to save on calling costs.
Ability to have traditional phone lines as a backup in low-speed internet areas.
Reduced cost over time, due to owning the server.
No DIY time on the part of the customer, the installation is handled 100% by the supplier.
Professional on-site system training provided by the supplier during installation.
With SIP trunking, loss of Internet or a catastrophic event has reduced effect on operations because calls can be redirected to another external number.
Our experienced YTL team are happy to provide further information on both On Premise and Hosted PBX Systems.