Join the ASTPP One stop solution Webinar!Join the Webinar

Post Details

On-Premise IP PBX vs. Hosted PBX: Which One Is Ideal for You?

  • January 12, 2021

To use a VoIP phone system in a business, an IP PBX system is widely used. There are two ways to furnish your business with a host of VoIP calling features via an IP PBX system.

  1. Hosted PBX
  2. On-premises IP PBX

Both of the solutions have their own pros and cons and you need to think smartly while considering using PBX based communication features.

Before we get into detail and compare these two PBX solutions, let me explain their definitions in brief.

Hosted PBX System

The VoIP service provider invests the required resources to get hosted PBX development. You will subscribe to a monthly VoIP phone service to any service provider. It means you are using the PBX services as a tenant.

On-premises IP PBX Solution

You will get the features based on industry standards. All you need to pay for is its license. You do not need to pay for development or its usage fees.

Now, it is time to consider the difference between both IP PBX solutions to aid your decision making. To make a comparison, we will consider three major aspects and it will give a clearer idea about both options, so you can choose the one that is ideal for your business.

1. Features

The hosted PBX development is done by the service provider, so the features will be of his choice. Of course, it will have all standard features, but if you need any features, which are not available, you have to either compromise or look for other vendors for that feature.

On the other hand, the on-premises IP PBX solution will have all features. If any new feature is added in the market, which is not in your system, you are most likely to get it with a system update once it is developed by your provider.

2. Ownership

The Hosted PBX solution will be owned by the hosted PBX service provider. The monthly fee you pay is for the service and software you are using. Thus, even after paying the monthly usage fee for many years, you will not have any rights to this software or its future feature development roadmap.

On the other hand, if you are opting for an on-premises IP PBX solution, then you will own the software license. You can also get custom features, if needed, by paying for the custom development.

3. Cost of using a hosted PBX solution

While using a hosted PBX solution, you will not need to pay any fee for hosted PBX development as well as its maintenance. All expenses will be taken care of by the service provider. All you need to pay is a monthly subscription fee.

If you get on-premises IP PBX software, then you will need to pay hosting and maintenance costs. However, you will not need to pay any additional fee for development or usage.

Based on this comparison, the conclusion is an on-premises IP PBX solution will give more flexibility and benefits in the long run. We offer a smart VoIP telephony platform, which offers IP PBX and many amazing VoIP solutions. For more details, contact us.