Business owners are initially attracted to VOIP by the low call costs, but once they understand what an IP Phone System truly offers their business they start to get really excited.
Chances are, if you are reading this article you have been doing your research and want a better understanding of the differences and benefits of Hosted IP PABX Phone System vs. On-Premise IP PABX Phone System.
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IP and PABX terms explained…
On-Premise vs. Hosted PABX IP Phone System Comparison
On-Premise IP Phone System | Hosted IP Phone System | |
---|---|---|
What’s the difference? | On-premise IP Phone Systems are operated and maintained by your company (usually supported by your equipment provider | Hosted IP Phone Systems are operated and maintained by your company’s VoIP service provider |
Requirements | Phone system hardware Software Handsets (Phones) And your choice of carrier | Selected carrier Carriers software Carriers range of supported handsets (phones) |
Hardware Requirements | PABX and supporting trunk cards Supporting extension cards I.P. Handsets Note: Can integrate with majority of existing handsets | IP Handsets – Limited to your selected carriers supported handset range Your business may also require a router |
Upfront Costs | Higher initial equipment costs, Higher setup costs | Lower initial setup costs, Lower setup costs |
Ongoing Costs | Higher long term maintenance costs Lower on-going monthly cost after system is paid for Ability to SIP trunk with VoIP provider to get low cost calls | Lower to no maintenance costs Ongoing monthly service fees Fee increases can be charged and/or cancellations fees |
Scalability | Complete access and control allowing you to adjust, create, delete users, extensions and turn on or off feature sets Add / change users from unit Additional features (open source) added without license fees | Additional users managed by your carrier Will incur both the cost of hardware (IP phone) and potentially additional service plan costs |
Flexibility and Upgrades | On-premise systems offer unrestricted access to your systems interface for managing users, call settings, and features Greater customisation options for integrating with business applications like Customer Relationship Management (CRM) and Contact Management software such as Salesforce.com, Microsoft Dynamics and Microsoft Outlook You decide what handsets you want and you can add surveillance equipment as well It’s all DIY. You’ll enjoy tight control over your system and know it inside and out. You’ll also dictate how quickly new features or upgrades are implemented | System flexibility is limited – With a hosted system your provider will implements solutions across the board for all customers. This can be time consuming, and you’ll be left waiting to be serviced Customization and new future feature additions can be slow or non-existent as providers unlikely to customize for a single business |
Redundancy | You can incorporate traditional lines in case of data or power outages On-premise systems are not carrier specific, so if your carrier goes out of business you are free to shop for an alternative provider | Loss of Internet or power will result in loss of phone service You are without a phone system if your provider goes under Your phone solution isn’t custom built to suit the specific demands of your business |
Quality of Service (QoS) | On-premise IP PABX solutions will prioritize your data traffic | Connections (signaling) and voice quality are directly related to your Internet connection |
Security | No concern of anyone listening to your calls | Be sure to check selected carriers privacy policy |
It’s Your Choice | There are Pro’s and Con’s for both Hosted and On-Premise IP PABX Phone Systems, the benefits of an IP Phone System should not be ignored though. In our experience the choice for business owners generally comes down to available budget and the age of the business. If you need a hand to weigh up the best option for your business – we’re always available |
VOIP Phone System Benefits
- Call cost savings
- Abundant, interesting and useful features
- Phone portability
- Service mobility
- Cheaper hardware
- Flexible network layout
- Integration and collaboration with other applications
- Administrative interface for simple management and customisation
- No geographical boundaries
- Simple to conference
- Fax over IP
Deciding on the right IP PABX Phone System option…
Although expanding and reconfiguring an on-premise IP PABX phone system will cost more than a hosted system, the clear advantage is the level of access, scalability and customization available to your business. You can also implement changes when it suits your business best. You enjoy ultimate flexibility.
Keep in mind that with an on-premise system, you bear all the risk and aggravation associated with expansion and growth, so good support should be considered. If you’re absolutely sure of your communication needs won’t be changing, then investing in equipment may make sense.
Due to low upfront costs and minimal management, most small businesses can benefit from a hosted IP PBX phone system. But every small business has its individual needs. If you’re a small business owner trying to decide between a hosted and an on premise IP PBX phone system solution contact the team at Key Technologies.
On-Premise IP PABX Phone System
More affordable than you think – plus we offer low cost maintenance.
Panasonic IP PABX Phone System
Installed, Inc. Trunk + Extension Cards, Conference + Voicemail Functionaility and 4 x Panasonic IP Handsets
To get pricing – call Key Technologies on 1300 755 615
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