hosted PBX

The 3 major differences between on-premise PBX and hosted PBX

More and more businesses are turning towards hosted PBX as their preferred communication platform.

But why?

What are the benefits of choosing hosted PBX over on-premise PBX?

Well, those benefits become obvious after a simple compare-and-contrast of the three major differences between hosted PBX and on-premise PBX.

Let’s take a quick look at those differences.

The maintenance

On-premise PBX requires an on-site voice server with physical phones located throughout the office building. The calls can be routed through a traditional phone company or via SIP trunking.

On the other hand, hosted PBX does not require an on-site voice server. Instead, it’s considered a cloud voice solution, and the voice provider is responsible for managing a shared voice server in a cloud data center. In this situation, the only physical equipment in the business are the phones, and all calls are routed via SIP trunking.

Obviously, there are clear differences between the two communication platforms. But what can have a huge impact on your business is the maintenance and setup of those two platforms require.

As for on-premise PBX, both maintenance and setup can get pretty expensive (as well as time-consuming). And at the end of the day, you’re responsible for the maintenance of that on-site server.

In comparison, with hosted PBX, the provider is responsible for the maintenance of the voice server (including software updates and the configuration of the server itself). This difference with hosted PBX removes a huge burden off your shoulders — which ultimately means less stress and fewer expenses and responsibilities.    

The scalability

If you want to add or remove lines, this can either be really easy or really hard.

With a hosted solution, scaling your communication platform is simple. You can lease new phones, and add or remove lines quickly. The provider will manage the process from beginning to end, and complications will be minimal (if not, nonexistent).

As for an on-premise solution, scaling your communication platform takes time and money. In some cases, you can lease new phones, but in most cases, you’ll need to buy new phones. You may also be required to purchase new licenses, and if you have any special communication features, additional hardware might need to be purchased, as well.  

The features

Speaking of features, an on-premise solution is limited, and like mentioned above, it might require the purchase of new hardware. For example, if you need the Find Me, Follow Me feature, then you’ll need to purchase a mobility server for each PBX.

As for hosted PBX, things are different. In fact, you can pick from a variety of advanced features, including CRM integration and advanced call reporting. And the majority of these changes can be controlled from an online portal.

The nimboIP difference

The above differences are pulled directly from one of America’s leading telecommunications brokers. It’s meant to be an “unbiased” look at the key differences between on-premise and hosted PBX.

However, here at nimboIP, our business-grade voice solutions work differently.

All of our voice solutions are 100%, custom-built for each individual client. We have a unique advantage because we’re able to combine the old with the new onto a single platform.

In other words, we don’t make you choose. We give you what you actually need.

  • Our voice solutions scale in increments of one, with all maintenance and upgrades included.
  • Our costs vary by what you actually use … not by what we feel we should charge you.
  • And our features are unlimited because we aren’t restricted by third-party licensing.

If you’d like to learn more about these key differences, then check out some of our client testimonials. See why businesses in Indiana are choosing nimboIP as their preferred communication provider.