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PBX 2018-07-10T17:08:23+00:00

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Hosted PBX vs On-Premise PBX: How to Choose

Voice Over IP (VoIP) telephones are popular options for modern businesses, and they offer many advantages. For example, businesses who had access to VoIP phone services (such as with a Unified Communications solution) reported a 51% increase in productivity. Select Tel offers all of our customers both options. We are one of the only providers that lets our customers choose which option is best for their specific needs.

Which option is better for your business?

  • A premises-based solution (in which the hardware is kept on-site in your server closet),
  • Or a cloud phone system (where your phones connect through your Internet connection to a provider that maintains the equipment at an off-site “cloud” data center)

Educating yourself on the benefits and potential challenges that come with using either a premises-based or cloud phone system can help you make a good decision to ensure your business needs are met and you get the greatest value for your investment. We are here to help your organization evaluate both options and present multiple providers for your evaluation.

A side-by-side comparison will help you see the difference between the two options:

Recommended For
Any size business that wants to conserve IT dollars; or a small business or start-up that does not have in-house IT resources. SMBs or enterprises with available IT resources and have the need for control over their phone system, or want a more customized solution.

Hosted PBX On Premises
Description Description
Phone system where your phones connect through your Internet connection to a provider that maintains the equipment at an off-site “cloud” data center. Phone system where the hardware is kept on-site in your server closet.
Comparing VoIP Features
All UC features included:

  • Call control
  • Collaboration
  • Mobility
  • Call management
  • Voicemail
  • Messaging
  • Contacts
  • Web-based management
  • Call training
  • Integrations
  • Contact center
  • Analytics
 All UC features included:

  • Call control
  • Collaboration
  • Mobility
  • Call management
  • Voicemail
  • Messaging
  • Contacts
  • Web-based management
  • Call training
  • Integrations
  • Contact center
  • Analytics
Cost of VoIP Services
Pros:

  • Lower setup cost
  • No maintenance costs
  • OPEX model
 Cons:

  • Potentially higher ongoing service
Pros:

  • No risk of fee increases
  • Lower total cost of ownership especially as the system grows
 Cons:

  • Higher setup costs
  • Unknown long-term maintenance and support costs
Future Expansion
Pros:

  • Your provider shoulders all the risk, work, and complexity
  • Growth or retraction can happen quickly
  • Software updates happen automatically so you always have an up-to-date system
 Cons:

  • (None)
Pros:

  • You have complete control and flexibility—you can even switch solutions or mix-and-match
 Cons:

  • Every expansion increases the complexity you have to manage yourself
Control
Pros:

  • All the major software updates and maintenance processes are handled by the provider
  • Ability to spend IT resources on other revenue-generating tasks
 Cons:

  • Your service provider has the actual control over your system – you don’t
Pros:

  • You have control over every detail. An easy-to-use solution with careful management will give you a solution that matches your needs better than anything else can
 Cons:

  • All software updates and maintenance processes must be done by internal IT staff, or outsourced
Implementation
Pros:

  • Cheap, quick, and easy
  • Less dependency required for in-house IT resources
 Cons:

  • Training required for users, and may or may not be offered by your solution provider
Pros:

  • You will know your system’s capabilities since you are handling deployment
 Cons:

  • Deployment time may take longer
  • Training required for users, and may or may not be offered by your solution provider

Recommended For
Any size business that wants to conserve IT dollars; or a small business or start-up that does not have in-house IT resources SMBs or enterprises with available IT resources and have the need for control over their phone system, or want a more customized solution

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