Selecting a phone system is an important business decision. From cost to scalability and maintenance, there are many factors that go into play when choosing between an on-premise or cloud-based PBX phone system. Each type has benefits and drawbacks, which we’ve outlined below – as well as some general considerations for choosing the right phone system.
On-premise vs hosted PBX: Pros and cons
Traditional business phone systems are on-premise, which means the hardware (i.e. the phones and phone system) are kept onsite. However, a growing number of PBX phone systems are hosted in the cloud, so they connect through the internet to a provider that maintains the equipment at an offsite data centre.
Whether you choose an on-premise or cloud-based setup, there are some common features you can expect from a reliable PBX system:
- Call control/management – such as call forwarding, conferencing, recording and encryption
- Voicemail – including options such as voicemail to email
- Contacts database
- Click-to-call functionality
- Call routing and queuing
- Call training
- Integrations with other communication and business apps
- Contact centre
- Analytics
Aside from these features, there are several pros and cons to consider for each type of system:
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Considerations for choosing a PBX system:
1. Cost of features
Providers may not offer the same standard features in their cloud-based offering as they do for their on-premise solution. For example, features like call queues and conferencing may cost extra for a cloud-based solution. However, this isn’t always the case – which is why it’s a good idea to research several options before making a decision.
2. Pricing model
Pricing models differ between providers and charges may be based on:
- Number of extensions used
- Number of simultaneous calls
- Included features
To keep costs consistent, it could be worthwhile opting for a provider that supports an unlimited number of extensions and unlimited simultaneous calls, with full features included in the pricing.
3. Total cost of ownership (TCO)
A cloud-based PBX system may have a lower total cost of ownership due to its flexible OpEx model and lower reliance on internal IT resources. Again though, this depends on the size of your workforce and requirements.
4. Compatibility
Make sure the PBX system you choose works with your business’ device fleet and other key systems. The last thing you want is to invest in a system only to realise the PBX app is only iOS-compatible while the rest of your devices run on Android/Windows.
5. Scalability
If there is potential for significant growth of your user base, it’s important to think about how this could impact your PBX requirements. With a cloud-based system it’s fairly straightforward to add users as needed, whereas with an on-premise solution you may need to purchase additional hardware as your business scales up.
6. Ongoing maintenance
Typically businesses will need to conduct their own maintenance and upgrades to on-premise solutions, whereas for cloud-based PBX solutions, the provider will manage this for you. Opting for a cloud-based system means internal IT resources can be more ‘hands off’, but it can also mean having less control over the system.
At Area9, we partner with 3CX to help businesses find the right PBX solution for their requirements. With 3CX, you can opt for a fully hosted solution, or set it up in your Google, Azure or Amazon cloud account with an easy setup wizard. 3CX can also be installed on-premise and virtualised on a Linux or Windows instance, or even a Raspberry Pi 4.
If you’d like to try 3CX free for a year, get in touch with our team or download your free trial from 3CX.