The definition and difference:
A premises-based PBX solution (also known as an IP PBX) is
dependent on a voice server kept on-site in the
equipment/server closet. Physical phones are located
throughout the office. Calls can route through a traditional
phone company as well as over the internet using SIP trunking.
Hosted PBX is a cloud voice solution where the provider
manages/maintains the voice server in a cloud data center.
The only equipment in the office are physical phones. Calls
route over the internet using SIP trunking.
On-Premise PBX
• Cost – higher upfront costs and set-up fee. Above certain
threshold it might be cheaper to own equipment than pay a
monthly fee, but servicing and maintenance can get expensive.
When using only basic call features with >25 phones per
store, total cost of ownership is less over 5-year period
• Scalability – purchase phones to expand (in addition to any
licensing required). PBX needs to be able to accommodate
growth and possibility of complexity with added features
• Failover – if issue with PBX in store, calling is affected and
potentially down until PBX can be repaired via service
contract
• Features – find Me / Follow Me feature requires adding a
mobility server to each PBX – can become expensive
• Presence, tablet/mobile apps for wireless calling can be
added– usually works together with Find Me / Follow Me for
seamless use across devices
• Maintenance – managed services contract (with phone
vendor) required for software patching and maintenance to
ensure security and uptime.
• Changes to system settings require PBX in store to be
adjusted on-site by phone vendor or internal IT team
• Can leverage traditional phone company service (PRI) for
inbound/outbound calling, or SIP trunks over the internet
> PRI is not affected by quality or busyness of internet
connection
• Handsets do not contain a lot of features/functionality –
providers push users to use the desktop application.
Hosted PBX
• Cost – usually low upfront costs, monthly fee per user.
Typically low total cost of ownership as hosted provider
takes care of server configuration, maintenance and
software patching.
• Scalability – purchased or leased IP phones added to
service plan, picking and canceling numbers and moving
phone system is easy and quick.
• Failover – calls can be rerouted to cell phones if issue with
SIP trunk quality, power at store or catastrophic event.
Safeguards at off-site facility includes back up power
sources, geographic redundancy of data centers,
active-active failover of servers, etc.
• Features – can integrate into CRM for advanced customer
analytics
• Can integrate contact center-life features for advanced call
routing or call analytics for advanced reporting.
• Dedicated internet bandwidth required to maintain high call
quality of SIP trunks.
• Tablet/mobile app allows users to make/receive phone calls
from app over wifi/cellular connections.
• Presence allows users to see who is available and on the
phone within store.
• Find Me / Follow Me feature included – will ring desk
phone, tablet, cell phone all at once or in order.
• Maintenance – no managed services contract required –
provider performs software patching, maintenance, upgrades
of PBX in the cloud.
• Changes to system settings performed through online portal
for remote management.
• Handsets do not contain a lot of features/functionality –
providers push users to use desktop/mobile app
