PBX: Virtual or Premises-based?

Buying a VoIP phone system can be a bit daunting at first. One critical decision that must be made is to determine which is better for your business: a premises-based solution, in which the hardware appliance is kept on-site, or a hosted PBX solution, where your phones connect through your Internet connection. Both have their merits and flaws, so it’s up to you to make an educated choice based on your needs and budget.

Many virtual PBX providers don't offer the same features in their hosted product as they do for their premises-based solution. If critical business communications features like queues, IVRs and conferencing are missing, or cost extra but they’re needed, then the product may not be a good fit for your company.  For some organizations, key functionality and features are going to drive the decision and these will in turn drive many of the other potential decisions.

When it comes to cost, a hosted or virtual solution is cheaper to set up and generally does not have any maintenance fees attached to it. Conversely, premises-based PBXs have lower ongoing costs while the virtual PBX potentially has higher ongoing ones.

When looking toward the future, a virtual PBX takes care of the work and complexity. If you have a premises-based solution, you have control but maintain the complexity.

A virtual PBX is also great for flexibility. A virtual PBX connects outside salesforce, multiple locations, remote workers or work from home employees. It’s also scalable. You only need to order exactly the number of phone extensions necessary with the features needed in the here and now. As business expands or contracts, it is easy to upgrade or downgrade service.

For typically larger companies focused on total cost of ownership (TCO), the premises-based approach has several advantages. Although the upfront cost is higher than with a hosted service, your company owns the system, rather than having to make payments forever.

Many small businesses are finding that they can save quite a bit over traditional phone bills by switching to a hosted PBX system. You save initially by not having to buy a lot of expensive server equipment and in the long run by enjoying lower phone bills that actually come with dozens of included features.

Solutions like Nextiva Connect free you from the office, from unnecessary costs, and from unnecessary hassles, so that you can focus on the task at hand. Calls can be routed anywhere at anytime with business-ready features. There are a host of plans that fit varying budgets and there are no set up fees to worry about.

Businesses all across the United States are benefiting from using a virtual PBX by saving money on their phone bill, reducing the time and cost of hiring technicians to manage their gear, and eliminating the hassle of buying and maintaining expensive on-site equipment.

Edited by Rachel Ramsey