In Hosted PBX

More and more companies are beginning to realize the benefits of using aVoice over IP (VoIP) system for their telecommunication needs. VoIP systems allow the user to make phone calls using the Internet rather than the traditional phone lines. This can offer the user significant savings.

With such a competitive environment, cost containment is the number one issue for many businesses. What company wouldn’t want to be able to make telephones calls for free? Use the existing Internet connection (which is already being paid for) instead of the phone company? It’s a no-brainer!

Of course it sounds good. But like any business decision, you should first gather all the facts and make the best decision for your business. Companies today can take one of two routes if they wish to switch over to a VoIP telephone system;

Option A) Install an on-premise VoIP PBX Phone System for the company.

Option B) Use a third party, Cloud PBX Provider (aka Hosted PBX Provider).

Naturally, many business owners lean toward hosting the system themselves. After all, why pay a third party provider?

The devil of course, is in the details.

Option A: On premise PBX

A business that wishes to host their own VoIP system will have a considerably outlay in both capital equipment (new phones) and time (training the IT staff to install and manage the VoIP system). Also required will be a Private Branch Exchange (also known as a PBX…this allows the VoIP calls to call regular phones).

Once the equipment is purchased, the PBX installed and configured and the IT staff trained, the business will be out a considerable amount of money before the first “free” Internet call has been made. The benefit is, the company has total control of the hardware and is not dependent on any 3rdparty for support.

They are also 100% responsible for upgrading the system, maintaining the security patches and servicing the system when problems arise. If the building housing the system burns, or is hit by a rogue meteor, the system goes with it.

Option B: Cloud PBX

The second option is to go with a 3rd party supplier. Businesses sign up for a VoIP service contract, wherein the provider supplies everything needed for system. This means the phones, PBX, the software—is all the responsibility of the 3rd party provider. The business owner does not need to account for future upgrades or additional IT staff. If something goes wrong with the system, it’s a matter of putting in a service call.

In addition, the system itself–meaning the voice mailboxes, the contacts, the features–are all cloud based, meaning they can be accessed from anywhere. Even if the physical building of the company were destroyed in a disaster, the phone system would still be available.

These types of systems also offer scalability. As you company grows, so can your system as most companies are billed per user.

The Savings

Both companies will still see significant savings in their phone bills as compared with a traditional (phone company) system. In option A, the capital outlay can be depreciated, whereas option B is more akin to a monthly utility bill. Over the long run, the costs will most likely even out.

The Real Question…What’s Best for Your Business?

In option A, the company has an enormous outlay of cash, but controls the system completely. They also have all the responsibility of running and maintaining the system.

Option B (the 3rd party provider) allows for a smaller outlay of cash (no phones or infrastructure costs) along with built in support, backups and “cloud” based availability.

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