On-Premise Or Hosted PBX System – Which One Is Better

A Private Branch Exchange (PBX) is just like a telephone exchange or switching system, which provides intercommunication between large telephone systems in a large organization and concentrates on the central office lines. The central office line provides connection to all its branches known as extension. The main purpose of this system is to reduce internal call costs. The PBX system gained popularity since 1960 which was then known as Centrex.

The PBX system comprises of two types of system.

  • Hosted PBX system.
  • On Premise PBX System

Hosted PBX System

In this system, a router will be installed in your premise, which will be handled by IP-PBX server from the provider’s location. You need not to care about the installation and its cost. The third party will be responsible for all the installation. The installing fee will be less but you have to pay monthly charge to the provider depending upon your usage.

On Premise PBX System

Also known as IP-PBX System, it is like a traditional PBX system in which the device is installed in the residence. If you have a large company and you exactly know every days call volume than this will be beneficial. The installation charge would be higher. However, the monthly charge will be less and it totally depends on the usage.

On Premise Or Hybrid – Which is more beneficial to you?

If you have a small company with limited use of PBX System then Hosted PBX System will be beneficial for you because of the following reasons:

  • The initial cost of equipment would be lesser.
  • The provider is responsible for all up gradation and maintenance.
  • There would be no extra expense on technician in case of maintenance.
  • Providers carry more resources and information, so additional features are possible.
  • Moving these systems is easier.

If you own a larger company or complex you can be comfortable with On Premise PBX System. The reasons behind this are mentioned below:

  • The monthly cost in an On Premise PBX system would be lesser and can be regulated by the user.
  • You will have all the control to create, adjust and destroy users as required.
  • New features can easily be added without any additional cost.
  • There is no need to change current carriers.
  • To save calling costs, VoIP trunks can be added.
  • The training of staffs for maintenance would be handled by the provider.
  • It would be in your advantage to regulate and manage any further requirement.

To determine the need for using any one of the system mostly depends on the company that how it manages its business and the expected call volume. It gets easier to find the appropriate PBX System when the needs for your business are considered.

Look upon the volume of calls your business handles everyday and then determine which PBX System is best for your company. If you own a small to medium business, hiring Grandstream PBX services would be beneficial as they offer great customer support and services at affordable prices.