No two businesses are the same, and neither are their phone requirements. Two choices you may want to consider are hosted or on-premise Private Branch Exchange (PBX) systems, both of which can save you a great deal of money over a traditional landline.
What Is Hosted PBX?
Hosted PBX is a type of VoIP phone system in which the service provider houses the Private Branch Exchange, and is also responsible for handling the technology that is required to operate it. With a hosted PBX system, you simply need an Internet connection and you will have desk phones that plug into the network at your location. All of the calls, signaling, and other features are handled at the provider’s location. You are then billed monthly for the ongoing service. You may sometimes be charged more for additional features as well.
What Is On-Premise PBX?
An on-premise business phone system is housed at your location rather than offsite at a provider’s. Most typically plug into your network for accessibility. A traditional phone company or a VoIP service provider can both be used to connect calls. Gateway cards are used to connect the on-premise system to a traditional phone company, or a Session Internet Protocol (SIP) trunk can be used when connecting to an Internet Telephone Service Provider (ITSP).
Benefits of Hosted PBX
Hosted PBX systems are recommended for businesses with fewer than ten employees, because there is no equipment to buy or lines to upgrade. There is also no need to install patches, as the provider is responsible for making all upgrades. Small businesses that use a hosted PBX system have access to all the resources their provider has, making it possible to obtain upgrades much sooner. A loss of Internet service will not affect operations, because calls can be routed to voicemail or a cell phone by the provider. In the event you need to move your phone system, all you have to do is simply plug your handsets it into a broadband connection wherever you are.
Benefits of On-Premises PBX
You will likely need an on-premise PBX system if your business has more than ten employees. With an on-premise system, you have greater control when it comes to adding and deleting users, and can also in some cases add new open-source feature sets without any additional licensing fees. Owning your own server will save you money over time, and VoIP phone trunks can even be added to help you save even more on your calling costs. You can also route calls to voicemail or a mobile phone in the event of a catastrophe.
Both hosted and on-premises PBX systems can provide your business with some incredible benefits, allowing you to save money without compromising call quality. The one you choose will largely depend on the size of your business, call volume, and the type of features you most often use.