Canada's Small Business Phone System Experts
Hosted PBX Systems
An on-premise IP PBX is simply a phone system where the hardware and components that control the phone system are kept at the location where it is being used. This is what comes to mind first for many people when they think of a PBX.
A hosted IP PBX is a phone system where the actual hardware for the phone system lives (or is “hosted”) someplace off-site. Also referred to as “cloud” phone systems, the components of a hosted IP PBX are hosted in the Cloud, which is simply a server located elsewhere and accessed over the Internet.
Pros of On-Premise IP PBX Systems
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More control since the system is maintained by your business
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Server ownership reduces expenses over time creating a lower total cost of ownership
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Failover capabilities through SIP trunking
Cons of On-Premise IP PBX Systems
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Software upgrades and patches require on-site IT administrator
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Higher setup costs and capital investment
Pros of Hosted PBX Systems
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Lower initial cost
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Software patches and upgrades are handled by the provider
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Selecting features and adding users easily performed via an online web interface
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Great for remote users and employees that work from home
Cons of Hosted IP PBX Systems
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Connection and voice quality depend on the Internet connection between the on-site phones and the service provider data center
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Loss of on-site Internet means loss of phone service (although phone calls can be routed to voicemail, cell phones, or alternative locations)