On-Premise vs Cloud-Based

A premises-based PBX solution (also known as an IP PBX) is dependent on a voice server kept on-site in the equipment/server closet. Physical phones are located throughout the office. Calls can route through a traditional phone company as well as over the internet using SIP trunking. Hosted PBX is a cloud voice solution where the provider manages/maintains the voice server in a cloud data center. The only equipment in the office is physical phones. Calls route over the internet using SIP trunking.

On-Premise PBX

Cost – higher upfront costs and set-up fees. Above a certain threshold, it might be cheaper to own equipment than pay a monthly fee, but servicing and maintenance can get expensive. When using only basic call features with >25 phones per store, the total cost of ownership is less over a 5-year period

Scalability – purchase phones to expand (in addition to any licensing required). PBX needs to be able to accommodate growth and the possibility of complexity with added features

Failover – if the issue with PBX in-store, calling is affected and potentially down until PBX can be repaired via a service contract

Maintenance – managed services contract (with phone vendor) required for software patching and maintenance to ensure security and uptime

Hosted PBX

Cost – usually low upfront costs, the monthly fee per user. Typically, the low total cost of ownership as a hosted provider takes care of the server configuration, maintenance, and software patching

Scalability – purchased or leased IP phones added to service plan, picking and canceling numbers and moving phone system is easy and quick

Failover – calls can be rerouted to cell phones if an issue with SIP trunk quality, power at a store or catastrophic event. Safeguards at off-site facility include back up power sources, geographic redundancy of data centers, active-active failover of servers, etc.

If you are interested in learning more, contact TDS Networks at 610-783-7005