On-Premise vs. Hosted Phone Systems

Modern VoIP business phone system come in two major flavors. One is an on-premise

IP-PBX, and the other is hosted, or cloud based.

If you are looking at new options for upgrading your telephone system in your office, it is

a good idea to take a look at the hosted PBX systems. We are aware that local, on-site

telephone systems are something that everyone is quite familiar and comfortable with.

However, hosted PBX systems are the latest trend in the market, and it has some

advantages. So if you are looking at options to replace the old telephone system at your

office, then it is important to weigh all the options.

Some businesses have compulsions to have on-premise IP-PBX. Keeping track of calls,

keeping tight control on call costs, privacy, and a number of other factors contribute to

this requirement.

There are certain facts that distinguish on-premise phone systems from hosted PBX

phone lines.

On-Premise Business Phone System:

One easy way to lay out the main difference is that the initial costs of on-premise phone

system are more. An estimate is approximately $500-$800 per employee which includes

all expenses such as individual handsets, the main IP-PBX hardware, cabling/wiring

which is mandatory to operate the system. Many newer phone systems are considered

to be a hybrid as they are capable of handling both IP as well as PSTN circuits.

Another factor to consider is the maintenance of an on-premise phone

system. Maintenance has to be done regularly, so there could be a need for network

and/or a technical engineer.

If you are using a hybrid system, there is the additional monthly cost for the use of the

PSTN trunk lines. The telephone service company then adds taxes, surcharges, and

additional fees. These charges add up and can really become quite a lot.

Hosted PBX Service:

A hoisted phone systems works on a cloud. A service provider hosts all the hardware

needed in a data center, and gives you connectivity through the Net.

First, there is no need to purchase or install an IP-PBX. You only have to buy the

number of IP phones you need. All the hardware is installed in the data center, and

there is no other cabling or wiring cost because the IP phones are all designed to go on-

line with existing computer network as long as the network is connected to the Internet.

Second, since there is less hardware to maintain, monthly maintenance costs are

reduced. The user simply picks up the phone, plugs it into an Ethernet jack, and the rest

of the work including registration of the phone is done by the hosted IP-PBX server.

Service providers offer very attractive rates for hosted VoIP business phones. For

example, Toshiba hosted phone service is available for as low as 24.99 per month.