There are cases to be made for both hosted IP-PBX & On-Premise IP-PBX. There are very few differences to the systems and their features. The move to an IP-PBX business phone system is beneficial regardless of which system is ultimately chosen.
What is Hosted IP-PBX?
Hosted PBX or hosted VoIP, otherwise known as an Internet phone system is one where the provider is responsible for housing most of the equipment as well as handling the technology required to provide the services of the phone system. The IP Phones will plug into an Ethernet Switch and the calls, signaling, and features are handled through an IP-PBX server at the provider’s location. The provider of the hosted IP-PBX charges a monthly fee that includes calling minutes and potentially certain features. Charges can also be on a per minute calling basis.
What is On-Premise PBX?
On premise PBX is also known as an IP-PBX phone system. It is similar to a traditional PBX system in that it resides at your location in a computer equipment room or phone closet. The main difference is that an IP-PBX uses IP routing and a traditional PBX doesn’t. An IP phone connects to an IP-PBX using your LAN. Calls can go through a traditional phone company or your IP-PBX can connect to a SIP Trunking provider on the internet/in the cloud.