{"id":8389,"date":"2020-01-30T10:15:01","date_gmt":"2020-01-30T10:15:01","guid":{"rendered":"https:\/\/www.therealpbx.com\/blog\/?p=8389"},"modified":"2020-04-03T08:14:14","modified_gmt":"2020-04-03T08:14:14","slug":"hosted-pbx-vs-on-premise-pbx","status":"publish","type":"post","link":"https:\/\/therealpbx.com\/blog\/hosted-pbx-vs-on-premise-pbx\/","title":{"rendered":"Hosted PBX vs On Premise PBX | How to Choose The Right Solution"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"720\" height=\"412\" src=\"https:\/\/www.therealpbx.com\/blog\/wp-content\/uploads\/2020\/01\/hosted-pbx-vs-on-premise-pbx-comparison.jpg\" alt=\"hosted pbx vs on premise pbx - comparison\" class=\"wp-image-8405\" srcset=\"https:\/\/therealpbx.com\/blog\/wp-content\/uploads\/2020\/01\/hosted-pbx-vs-on-premise-pbx-comparison.jpg 720w, https:\/\/therealpbx.com\/blog\/wp-content\/uploads\/2020\/01\/hosted-pbx-vs-on-premise-pbx-comparison-300x172.jpg 300w, https:\/\/therealpbx.com\/blog\/wp-content\/uploads\/2020\/01\/hosted-pbx-vs-on-premise-pbx-comparison-705x403.jpg 705w\" sizes=\"auto, (max-width: 720px) 100vw, 720px\" \/><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">The key\nto successful business is excellent communication. If you have this ability,\nyou can achieve success in a short period. Every business has its unique\nchoices in selecting the communication systems. Some go for the traditional PBX\nsystems, while some prefer modern hosted phone systems.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The new players entering the business industry are confused between traditional and <a href=\"https:\/\/www.therealpbx.com\/hosted-pbx.html\">hosted PBX solutions<\/a>, as both the PBX solutions have different features. For businesses, it is a tough decision to choose between these telephony solutions. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Finding the right PBX system can become\nchallenging; that\u2019s why you need to understand the difference between both\nthese services.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here,\nwe will explain the concept of both communication systems and their pros and\ncons. So, if you are confused about the system that best fits your business,\nread ahead:&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Hosted PBX<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Hosted\nPBX is a cloud based communication solution that ensures all communication\nactivities over the cloud. A third party service provider provides hosted phone\nservices and is responsible for data security, system upgrades, uninterrupted\ncommunication, and server maintenance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Traditional PBX<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Traditional\nor on-premise PBX resides at a business location, and the communication is done\nwith an IP phone using a LAN. In this, businesses maintain their servers and\ntake care of the entire communication system. Also, it requires a dedicated IT\nteam that can resolve issues that might appear during the communication\nprocess.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Difference Between Hosted PBX And Traditional PBX<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There\nare numerous differences between hosted and on-premise PBX solutions.\nUnderstanding the difference between both will help you to determine the best\nsolution for your business.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here is\nthe quick comparison:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Cost Investment<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">When\nyou opt for an on-premise system, you also need to purchase new hardware and\ncompatible software. Also, it requires a vast infrastructure, IT, and\ninstallation cost. Initially, the traditional PBX system incurs a considerable\nloss to the business; that\u2019s the reason it is not so much suitable for small\nand medium-sized companies.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Whereas,\nhosted PBX system has lower initial equipment and set up cost as it is hosted\nover the cloud. Also, hosted PBX solutions ensure \u201cpay as you go\u201d plans. Due to\nthese customizable plans and pricing, it becomes easy for businesses to opt for\ncommunication services. Most companies are switching from traditional PBX to\nhosted PBX solution for its flexible plans and pricing.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Business Scaling<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Businesses\nneed to scale up or down their telephone lines for various reasons like\nincrease and decrease in the number of agents or heavy incoming\/outgoing call\nvolume.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the\ntraditional PBX system, you are not able to add or remove telephone lines\ninstantly as you require hardware and dedicated IT staff to scale up and down\nthe phone lines.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But on\nthe other hand, hosted PBX solutions ensure easy scaling through which you can\nadd or remove phone lines instantly.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Business Reliability<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Business\ncontinuity and disaster recovery are both crucial factors for every business,\nas no one wants to lose data. Natural disasters like fires, floods, the\nearthquake can make your system fail to work. Also, breaks business continuity\nby making computer system completely inaccessible. That\u2019s why it is highly\nrecommended to ensure backup and recovery in your business.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On-site,\nthe PBX system can\u2019t assure backup and recovery as data is available only in\ninhouse storage. But cloud PBX systems won\u2019t take your business offline as all\nthe data is available in the cloud that can be easily accessed and recovered\nany time.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Geographic\nFlexibility<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Most\nbusinesses want geographic flexibility to target customers globally. On-premise\nand hosted PBX, both the systems ensure remote working. But in the case of an\non-premise PBX system, you need to invest considerable costs to facilitate\nservices in different locations.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Alternatively,\nthe hosted PBX system does not need any additional investment as you need to\nconnect with the network &amp; login to the PBX system to start communicating.\nAlso, it removes redundancy from business operations as all agents have access\nto the same pages and data. Agents\u2019 can retrieve or share necessary information\nwhenever required.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. Technical Support<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The\non-premise system requires dedicated IT staff to troubleshoot day to day\nproblems of the PBX system. As on-premise PBX systems are hardware dependent,\nyou need to hire a team of IT members that again increases the upfront business\ncost.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The\nvirtual PBX solution ensures an easy to use platform where the supervisor or\nadministrator can make changes to the system in just a few clicks. Also, any\nsignificant issue that occurs in the communication process is resolved by the\nservice provider and does not need any attention from the business side.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">6. PBX Installation<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The\non-premise PBX system takes much time for installation, as it requires multiple\nhardware to start the process.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Alternatively,\nthe cloud PBX system does not require any expensive hardware to be installed to\nstart business communication. Businesses can initiate conversations as soon as\nthey log in to the system.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">7. Customer Service<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">On-premise\nsystems provide limited features that are not enough for ensuring excellent\ncustomer service. Whereas the virtual PBX system offers a list of advanced\ncommunication features that streamlines your business communication. Features\nlike voicemail to email, auto attendants, call forwarding, queuing, and\nrecording provide multiple opportunities to agents that help serve customers in\na better way.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How To Choose The Right Solution?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A study by&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/www.marketsandmarkets.com\/Market-Reports\/hosted-pbx-market-103518953.html\" target=\"_blank\">Markets and Markets&nbsp;<\/a>says that The global hosted PBX market was valued at USD 4.19 Billion in 2017 and is expected to reach USD 9.50 Billion by 2023, at a Compound Annual Growth Rate (CAGR) of 14.9% during the forecast period. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Now that you know all about both these communication systems, it is an easy choice to make. Analyze all situations and select the right solution for your business. <\/p>\n\n\n\n<div class=\"wp-block-button aligncenter is-style-outline is-style-outline--1\"><a class=\"wp-block-button__link has-text-color has-col-303030-color has-background has-col-969696-background-color\" href=\"https:\/\/www.therealpbx.com\/blog\/wp-content\/uploads\/2020\/01\/benefits-of-hosted-pbx-system.pdf\" style=\"border-radius:20px\">Know More About Hosted PBX Benefits<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Confused between Hosted PBX vs On Premise PBX for your business? Read this blog to learn the differences and choose the right telephony solution. <\/p>\n","protected":false},"author":63,"featured_media":8405,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-8389","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hosted-pbx"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Hosted PBX vs On Premise PBX | How to Choose The Right Solution<\/title>\n<meta name=\"description\" content=\"Confused between Hosted PBX vs On Premise PBX for your business? 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