How to Choose Between Onsite and Hosted Telephony

Phone systems are a required investment that, when chosen correctly, can propel your business to new heights by streamlining operations and providing an optimal end user experience. The first step when implementing PABX is to make the choice between a hosted or on-site solution. So which is right for you? This can be a difficult decision if you are not an expert.

 Onsite PABX Solution

Onsite PABX refers to a system where the physical PABX remains on-site at your office.

Benefits of Onsite PABX:

  • Having an on-site PABX gives user control to create, adjust and delete users as desired
  • VoIP trunks can be added to save on calling costs
  • Improved voice quality
  • On-site PABX ownership reduces monthly expenses

Cost comparisons to consider include:

  • Higher initial cost
  • Lower service cost per month
  • Decreased monthly service cost for more extensions
  • Less cost efficient in a multi-site solution

Hosted PABX Solution

A hosted PABX system is one where the provider is responsible for housing the IP-PABX, as well as handling the technology required to provide the services to the phone system. The desk phones will plug into an internet router and the calls, signalling and features are handled through the service provider.

Benefits of Hosted PABX:

  • Providers have more resources than users, so new feature sets are possible
  • New feature installation is handled by provider to avoid confusion
  • Upgrades of the PABX are handled by the provider
  • Improved scalability for multi-site solutions

Cost comparisons to consider include:

  • Lower initial equipment cost
  • No maintenance costs of the IP-PABX
  • Low monthly service cost for smaller solutions
  • Extended features, like conferencing, call recording and Telephone Management Service, may come with additional costs

What to Ask When Comparing Hosted PABX vs. Onsite PABX

Deciding between hosted PABX and traditional PABX requires asking yourself some questions:

  • How many sites and/or phone extensions are you planning on having?
  • What are the estimated costs of installing a hosted PABX vs. an Onsite PABX?
  • Do you plan on expanding your PABX Network?
  • Will you need to work from home?
  • Do you need video conferencing integration?

Evaluating the needs of your business provides you with valuable insight when weighing the benefits and drawbacks of hosted and onsite PABX, which helps you make an educated decision on which one you’ll incorporate into your company.

Need help deciding what solution will suit your company best? feel free to contact us. With years of experience in both hosted and onsite voice, Gravity Office Solutions is happy to help you find the solution that’s right for you. Click here to contact our experienced team for more information.