What’s the difference between “Premise Based” and “Hosted” PBX phone systems?


Don’t Know What Phone System Is Best for Your Business?

Looking for a phone system can get complicated and confusing. Making an uneducated phone decision can lead to limited or unnecessary capabilities that don’t compliment your company. Today, there are several telephone solution options that were not available if you purchased your current system as few as five years ago. This article will help familiarize you with two telephone solution options: on-premise and hosted PBX.

Premise Based IP-PBX Phone System Benefits

An IP-PBX phone system stationed directly on your premises means the network will be configured and operated within your physical location, rather than over the internet. If you’re a company that’s more comfortable with traditional landlines (with providers like Time Warner, Frontier, etc.), a premise-based option may be your solution of choice. Traditional also features analog or digital T1, and is SIP trunk ready. While an on-premise phone system has an expensive upfront cost, you can avoid monthly costs. Or you can do a short-term lease. Either way, you will be able to own the system for the life of the equipment, which can last between 8-12 years (sometimes more). And when it’s time to upgrade, you can purchase all NEW equipment. Lastly, on-premise features include add-ons such as: remote phones, and detached office connectivity. Those are the benefits that may make an on-premise phone system the solution for your business.

Hosted (in the Cloud) PBX Phone System Benefits

If you’re a business that needs or wants to reserve upfront capital (typically small or midsize) you may want to choose a virtual PBX system that is hosted in the Cloud. Hosted allows you to save on installation, maintenance, scalable options, and phone system upgrades since the equipment isn’t physically on your premises. Like premise based, Cloud hosting offers everything from telephone numbers, to extensions, to automated attendants, to voice mailboxes, et cetera. It also allows you to answer calls from you desktop or any other device using the same number. Cloud hosting allows you to save on closet space, IT service, and allows you flexible upgrades or downgrades in case your business tends to fluctuate from season to season. Everything can be done virtually and off-campus. This also benefits companies with detached offices, remote workers, mobile employees, and ones without office space. One of the biggest changes in business within the past 10 years is where people are working. Once you know where your employees are working and how much capital you’re able to spend at what time, you will have a better idea of which type of phone system is right for you.

Contact Us to describe your situation and we will give you our best recommendation.