One of the regular questions that businesses face when upgrading their telephony system is to choose between On-site or Hosted IP PBX. There is no better option between them, but there are fundamental differences to each option, and the considerations will differ depending on your business needs. 

ON-SITE PBXHOSTED IP PBX
Set-up CostsHigh initial capital investmentLow initial capital investment
Monthly CostsLow monthly costs High monthly costs
Call RatesLow call rate costsHigh call rate costs
MaintenanceIn house expertise requiredMaintenance handled by  provider
ScalabilityDifficultEasy

On-site PBX

If a business can afford the investment, on-site PBX systems are usually a better solution as the rate per call is more cost-effective than a hosted PBX system. On-site PBX systems are perfect for organizations who handle large call volumes regularly, without having to pay external providers for access to the telephony service. However, On-site PBX systems come with its cons as it requires a substantial capital layout for hardware and in-house expertise to maintain the system.  

On-site PBX Pros

  • On-site PBX systems give you full control over your business telephony system as you own your own network
  • Reduced rate per call
  • No license fees required
  • SIP trunks can be added to reduce costs on calls
  • Can handle large call volumes 

On-site PBX Cons

  • A substantial capital investment needed for hardware
  • On-site PBX requires in-house expertise to maintain the system
  • Power failures will interrupt business operations unless you have a SIP provider
  • Deployment time may take longer
  • Every expansion increases the complexity you have to manage yourself

Hosted IP PBX 

Hosted IP PBX systems are provided and maintained by a third party on servers that are held at an external location, which passes the responsibility of support, maintenance and management to the service provider. Hosted PBX systems do not require large capital investment for hardware. Provisioning new lines are allocated online, which makes it a lot easier than adding a new line to an On-site PBX system. However, the rate per call on a hosted PBX system is much more expensive than on an On-site PBX system.  

Hosted IP PBX Pros

  • Initial capital outlay is minimal 
  • No in-house expertise required as maintenance and software updates are handled by the service provider
  • Easy to add extra lines and features when required
  • Servers are held at an external location
  • 24/7 service provider assistance

Hosted IP PBX Cons

  • Rate per call is higher than an on-site PBX system
  • Call quality is dependent on the strength of your internet connection
  • Feature upgrades come at an additional cost
  • Monthly license fees may increase
  • You do not have full control of your business telephony system

Conclusion

On-site and hosted PBX systems are effective and reliable business telephony systems that offer different benefits. When it comes to choosing between them, there are a few things to factor in such as the size of your organisation, budget, level of expertise and many more. Luckily, Bolela is here to help you make the right decision to suit your business needs.

Simply request a callback, and one of our friendly advisors will be in contact with you for a free assessment and answer any questions you might have.  

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Let’s talk about how we can help you with your company communication network.