On-Premise PBX or Cloud PBX: Which Is Best for Your Business

 

Private branch exchange (PBX) phone systems are widely used by businesses to communicate with internal and external stakeholders. They are known for advanced enterprise-grade features like local and international lines, music on hold, call queuing, call monitoring, call recording, call transferring, call forwarding, extensions and more handsets. Packed with features not found in traditional mobile phones and telephones, they are classified into two major types, namely on-premise PBX system and online PBX phone system. In order to understand what is the best type for your business, let’s take a closer look at their main differences.

On-Premise PBX

If a business opts to go for an on-premise PBX, it must have important hardware, networking equipment, servers, telephone lines and physical handsets at its premises. It will have to set up and install all the necessary components. After that, it will also need regular updating and maintenance. This type of system is commonly found in businesses with spacious offices and it requires regular IT maintenance.

A major downside of an on-premise PBX is the cost. More expensive than the cloud variant, the business needs to buy networking equipment, servers and telephones. In addition, they will have to spend more to update and maintain the system over time. Space is also a concern because it requires storage for bulky telecommunications equipment. It also needs support from experienced IT individuals. These are the reasons why on-premise PBX is not practical for smaller organisations and businesses.

Cloud PBX System

A cloud PBX phone system is the practical choice for small and mid-size businesses. Using this system, all you need to have are the software and phones. The cloud service provider will be managing the other components such as the licensing, network equipment and servers. This system is easier to use and install because the updating and maintenance will also be handled by the provider.

When using a hosted PBX for small business, you just need a Voice over Internet Protocol (VoIP) to make and receive telephone calls. This is perfect for businesses with remote teams because members can conveniently access the system through VoIP phones, smartphones, tablets, desktops and more.

Conclusion

The means of communicating in business have quickly changed in the last couple of years. Instant messaging and social media services have dominated today’s business landscape. However, phones remain highly important in the daily operations of large medium and small companies worldwide.

So which is the best PBX phone system for your business? In a time when being practical truly matters, experts highly recommend an online PBX phone system because it has more benefits especially for small and medium size enterprises. Compared to on-premise PBX, cloud PBX systems are mobile friendly, packed with more features and are very flexible and scalable. More importantly, these hosted PBX systems need very minimal office space, easy to set up and use, and are generally cheaper.