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Should You Use Hosted PBX or SIP Trunking for Your Business Phone System?

July 02, 2019

When it comes to business phone communications, we rely heavily on hosted and cloud solutions today to connect callers at lower costs. Whether you’re just starting to look into the technology for use at your business, or have had phone systems in place for some time, understanding the unique differences is key to knowing which option is going to be most beneficial for your operations going into the future.


Some confuse hosted PBX and SIP Trunking as being similar and while they share some of the same benefits, there are key differences that you should be aware of as you make your decision.

Like the fact that a Hosted PBX, which stands for private branch exchange, is handled by a third party to provide cloud-based phone solutions. It can, however, still run over traditional PSTN in some cases. With hosted PBX, it’s possible to scale up and add more phone lines as a business grows as well as route and record calls if needed - and more.

The global market for hosted PBX offerings is predicted to reach $9.5B by 2023.

With SIP Trunking, a company is gaining a virtual connection to the Internet that it can use for communications via the Internet. The “SIP Trunk” connects right to the company’s already existing PBX equipment so that it can work over the Internet. From here, new features including call routing or protection against toll fraud can all be achieved.

Sales for SIP trunking are expected to reach $22B by 2024 according to Eastern Management Group.

Now that you know the role each plays and how they differ, it’s important to think specifically about your business needs.

Are you able to handle on-premise equipment upgrades or do you want someone to take care of all of that on your behalf? Additionally, is it more important that your business be future ready for new demands as they emerge or will you be starting from scratch and require the help of experts outside of your workforce to maintain equipment?

All of these factors play an important role in whether Hosted PBX or SIP Trunking is the right method for your business phone system.




Edited by Maurice Nagle


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