On-premise or cloud PBX?

There is no doubt that there is a lot of life left in fixed line telephony. New innovations and the requirement for a stable, secure communications medium for businesses will continue to drive the need for this technology for a long time to come. If you’re considering upgrading your PBX to take advantage of fixed lines, which is best, an on-premise PBX or a hosted one?

Both solutions have pros and cons and this article will explore both.

On-premise PBX

On-premise PBX is the established way of doing things. The equipment is installed on your premises, you buy it up front and manage it as you see fit. The PBX utilises your SIP or fixed lines and you can manage your equipment your way. It’s the way things have been done for many years, offering the reassurance that the solution works.

Pros of on-premise PBX

  1. Potentially lower long term running cost over hosted.
  2. Potentially more secure and takes advantage of the inherent security of fixed line telephony.
  3. Available as hybrid, legacy or full IP.
  4. Full user control over configuration and management.
  5. Can change carrier and services as required.

Cons of on-premise PBX

  1. Higher initial cost than hosted PBX.
  2. Not all maintenance contracts are created equal.
  3. Expansion can be complicated and costly.
  4. Loss of power or hardware failure can cause outages.
  5. Hardware goes out of date quickly.

Hosted PBX

Hosted PBX uses the same cloud model as many of the applications you probably use all the time. It can use VoIP technology to deliver comms over your existing fixed lines and you use similar desktop phones or softphones that connect to you to the hosted PBX provider.

Pros of hosted PBX

  1. Lower initial setup and running costs.
  2. The vendor manages installation, configuration, support and upgrades.
  3. No hardware required on site aside from router and handsets.
  4. Provisioning is purely virtual and can be done in minutes.
  5. Potentially zero downtime.

Cons of hosted PBX

  1. Voice quality dependent on network connection.
  2. Dependent on vendor for upgrades, support and reliability.
  3. Less control over privacy and security.
  4. More dependence on third-party for core services.
  5. Emerging technology with lots of changes happening.

For some businesses, having the dependability of an onsite PBX may overcome the benefits of a hosted PBX. For others, the minimal outlay and inconvenience of a hosted solution may be ideal. At the end of the day, there is no ‘best’ fixed line telephony solution. You have to use the solution that is right for you now and into the future. If you need help deciding which that is, contact Excalibur today. We have the expertise and the desire to help you get the best out of technology!

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