Hosted Pbx Solution Vs On-premises Pbx Solution

By Author: Harold Vance
Total Articles: 113
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PBX solutions come with extraordinary features and amazing benefits for any small to big organization. There are many private, government and nonprofit organizations which are adopting the PBX solutions. There are many as such organizations which are looking for getting the benefits of the PBX services. However, they are still not sure about the power of this amazing communication and collaboration solution. This article will educate you with some interesting facts of two different possible adoption of the PBX solution.

Before getting into details of the two different types of PBX solutions and its pros and cons, let’s have a quick look at what the PBX solution is and what are the features it offers.

The PBX solution is a software solution which works as a Private network of telephonic extensions for an office. It uses the Session Initiation Protocol (SIP) for voice, video and data transfer. It can be used for internal and outbound communication. It comes up with different features. The key features are listed below:

- Call routing
- Call forwarding
- Call hunting
- Call hold
- ...
... Call transfer
- Call waiting
- Call Parking and Call pickup
- Music on Hold
- Interactive Voice Response System
- Barge-in
- Whisper
- Call Detail Reports
- And more

As you have a brief idea of the PBX solution, now, let’s understand two different types of PBX solutions and its pros and cons so you may be able to decide which solution you would like to go for.

Similarities between Hosted IP PBX Solution And On-Premises PBX Solution
Both are PBX software, which get installed on a server. As it is a software solution, it decreases the operational and maintenance cost. It removes all hassle of bulky hardware and wires which is an unavoidable part of the traditional communication systems. Both have all the features of PBX software. Both are reliable for communication and collaboration for any company. Both offer secure communication. Both are easy to scale so scaling up or down is easier.

Difference between Hosted IP PBX Solution And On-Premises PBX Solution
The hosted PBX solution is installed on the server of the service provider. Thus, the service provider will take care of everything related to software and server. It means you don’t need to worry about the system upgrade or server capacity. You just need to pay for the PBX services you are using and everything else will be taken care by the PBX service provider. You may also choose the number of features you want to use and pay for it. You can also change the service provider any time, if you wish to. The concern with the Hosted PBX solution is you do not own the solution; you are just using the services and paying for it.

The on-premises solution is installed on your own server and it is owned by your company. The benefit of the on premises solution is that you have to invest only once and then the solution is all yours for a lifetime. You may also get a custom IP PBX software development to select the features you want. It is also a white label solution so you may also gain the brand benefits. The only concern with the in-house aka on-premises PBX solution is that it needs a one time investment initially as well as the maintenance need to be taken care by the company. However, it is easily available and that also cost effectively.