There are pros and cons of both hosted PBX as well as on-premise PBX. There are some fundamental differences to each system and their feature advantages. You should know the difference before deciding on one or the other. The move to an IP-PBX business phone system is beneficial regardless of which method. However, there are differences and knowing those leads to a better VoIP phone system. As a result, you can gain a higher level of satisfaction for the company, employees, and even callers.
Hosted PBX
Hosted PBX or hosted VoIP, otherwise known as an Internet phone system, is one where the provider is responsible for housing the IP-PBX and handling the technology required to provide the services to the phone system. The desk sets will plug into a router, and the calls, signaling, and features are taken care of through an IP-PBX server at the provider’s location. The hosted PBX provider charges a monthly fee that includes a minutes package and potentially certain features. Charges can also be at a per-minute calling cost. Either one can be affordable depending on the rates. A company that knows the number of minutes spent on the phone in a given month can make effective cost comparisons. Extended features may come with additional costs.
On Premise PBX
On-premise PBX or IP-PBX phone system is similar to a traditional PBX system that resides at a location, such as a computer equipment room or phone closet. The main difference is that IP routing uses current technology. The signaling is with an IP phone to the IP-PBX server using a LAN. Using SIP trunking, calls can go through a traditional phone company and voice over the Internet (VoIP). Gateway cards connect the system to the formal phone company provider. The provider can be the one that already provides service, though you can configure a SIP trunk for use with an Internet service telephone provider (ISTP). An Asterisk-based system is the most affordable option for on-premise PBX due to the flexibility with open-source software.
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