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 utilizes 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, 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 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 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 systems offer a maintenance-free solution that will bring 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 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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