Businesses today have a range of options for their communication needs. While on-premise PBX systems have been the standard for many years, cloud-based phone systems have become increasingly popular in recent years.
When it comes to choosing a phone system for your business, it can be difficult to decide between on-premise PBX systems and cloud-based hosted phone systems. Both options have their benefits, but it’s important to understand the differences in order to make an informed decision.
In this article, we will compare these two types of phone systems to help you choose the one that’s best for your business.
What is the difference between on-premise PBX systems and cloud-based hosted phone systems?
On-premise PBX systems are installed on the business’s own servers and are maintained by the in-house IT team. This means that the business has complete control over the system and can make any necessary modifications or upgrades. However, this also means that the business is responsible for all maintenance and upkeep, which can be time-consuming and costly.
In Contrast, cloud phone systems are hosted in the cloud by a third-party provider. The provider takes care of all maintenance, upgrades, and any other IT-related tasks, freeing up the business to focus on other priorities. Additionally, cloud-based systems are typically more reliable as the provider is responsible for ensuring the system is up and running 24/7.
On-premise PBX systems require a significant upfront investment, including the cost of hardware, software, and any necessary licenses. Additionally, ongoing maintenance costs can add up over time.
Cloud-based hosted phone systems are often more cost-effective, as they are usually offered on a subscription basis. This means that businesses only pay for what they need and can easily add or remove users or lines as needed. The provider takes care of all maintenance, upgrades, and other IT-related tasks, eliminating the need for an in-house IT team.
On-premise PBX systems can be difficult to scale, as adding new users or lines often requires additional hardware and modifications to the existing system.
Hosted phone systems are highly scalable, as the provider takes care of all maintenance and upgrades. Businesses can easily add or remove users or lines as needed without having to worry about technical details. This makes it easy to scale the system as the business grows.
With an on-premise PBX system, employees are limited to making and receiving calls from the office location.
On the other hand, cloud-based hosted phone systems are highly flexible, as employees can make and receive calls from anywhere, as long as they have an internet connection. This makes it easy for employees to work from home, on the road, or from any other location, which can increase productivity and improve work-life balance.
On-premise PBX systems may be integrated with other business tools and applications, but it often requires custom development and can be more difficult to set up.
Cloud-based hosted phone systems are often integrated with other business tools and applications, such as CRM, project management, and email. This makes it easy to manage all of your business’s communication needs in one place, improving efficiency and reducing the need for manual data entry.
Reliability and Uptime
On-premise PBX systems can be susceptible to downtime due to hardware failures, power outages, and other technical issues. When this happens, your entire phone system can be impacted, leading to lost productivity and potential lost business.
Cloud phone solutions, on the other hand, are typically highly reliable, as they are hosted in the cloud by a third-party provider. The provider ensures the system is up and running 24/7 and performs any necessary maintenance or upgrades. Additionally, with cloud-based systems, if there is a hardware failure, the provider can quickly switch to a backup system to ensure there is no downtime.
With an on-premise PBX system, the business is responsible for creating a disaster recovery plan and ensuring that all critical data is backed up. This can be time-consuming and costly, and if a disaster does occur, the business may be without a phone system for an extended period of time.
Cloud-based hosted phone systems often have built-in disaster recovery features, as the provider is responsible for ensuring that all critical data is backed up and that the system is up and running 24/7. This eliminates the need for businesses to create their own disaster recovery plan, freeing up time and resources for other priorities.
Security is a critical consideration for any business, and it’s no different when choosing a phone system. On-premise PBX systems are vulnerable to security breaches, as they are installed on the business’s own servers.
Cloud-based hosted phone systems are typically more secure, as the provider takes care of all security-related tasks, such as updating software and installing patches. Additionally, cloud-based systems are often hosted in secure data centers, with multiple layers of security to protect against breaches.
The Bottom Line
When choosing between on-premise PBX systems and cloud-based hosted phone systems, it’s important to consider factors such as cost, scalability, reliability, disaster recovery, and security. Both options have their benefits, but cloud-based hosted phone systems are typically more cost-effective, scalable, reliable, and secure.
Ultimately, the best choice will depend on the specific needs and requirements of your business. It’s important to consider all of these factors and choose the option that will best meet the needs of your business now and in the future.