Demystifying On-Site vs. Hosted IP PBX Systems: The Pros & Cons

IP-PBX System Analysis

Demystifying On-Site vs. Hosted IP PBX Systems: The Pros & Cons

In the same way that traditional telephone lines require PBX Systems to switch telephone calls, VoIP systems require an IP PBX system to connect IP Phones to the Public Switched Telephone Network (PSTN) and complete phone calls. Unlike traditional PBX systems, IP PBX systems utilize the TCP/IP protocol to deliver audio, video, and instant messaging.

When setting up a VoIP system, network administrators need to consider the benefits and limitations associated with IP PBX Systems and hosted PBX Systems. Businesses need to take into consideration their company size, familiarity level with IP PBX systems, and the time and resources they’re willing to invest in maintaining the equipment to determine which option is the best fit for their company.

On-Site IP PBX Systems

On-site IP PBX systems remain on the premises of a Local Area Network (LAN) of an end-user. Typically, medium-sized to larger enterprises find investing in an on-site system appealing because it gives them direct access and control over their Voice over IP (VoIP) system, including how many extensions to add to a network.

Though on-site IP PBX systems are customizable, they do not come without their limitations. Network administrators are responsible for updating and maintaining their hardware.  Should the hardware fail, businesses will absorb the costs.

On-sit vs Hosted IP-PBX Systems Venn Diagram

Hosted IP PBX Systems

Hosted IP PBX systems offer a maintenance-free solution that will bring the VoIP benefits to a workplace without the hassle of maintaining and updating the equipment. The off-site solution eliminates the need to purchase or upgrade hardware. Hosted IP PBX systems are ideal for small to medium-sized businesses. Hosted systems  are ideal for telecommuters  in different locations and that require access to a business phone.

With a myriad of vendors, it’s important to take into consideration the history and performance of a company before choosing them as your host.Oftentimes, the quality of your communication will depend on the service provider.

To learn more about the features that network administrators should not compromise on when researching IP phones, click here.

To build your own VoIP system, browse through our wide selection of IP Telephony equipment.

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Comments (4)

  • IVR Solution Providers Reply

    VoIP is very helpful to reduce your costs and increase customer satisfaction in your business. It’s really an informative and rich post.You described in a great way the benefits of using live chat services.
    Thanks! Keep Sharing !!

    April 20, 2018 at 11:12 pm
  • Evoipstore Reply

    You have discussed here the definition of hosted VoIP and On-Site PBX in a great way and then go over the pros and cons so that we will make the right choice for our business. Thanks for sharing an informative article.

    January 28, 2019 at 8:23 pm
  • Asghar Zaidi Reply

    I personally always opt for an on-site system. After all, you get complete ownership of the system, you have the flexibility to add or remove features and functionalities and you save yourself from the trouble of paying every month. Yes, it might not come as a cheap solution but it is only a onetime cost which is worth it. Moreover, you can find affordable IP PBX systems these days such as Grandstream’s IP PBX series which packs cutting-edge technology and affordability.

    February 7, 2019 at 1:58 am
  • innonet Reply

    Nice Blog! Thanks for posting it.

    May 29, 2019 at 3:07 am

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