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IP Phone Systems

There are two types of IP PBXs: On-premise and hosted

On-Premise IP PBX

An on-premise IP PBX is simply a phone system where the hardware and components that actually power the phone system are kept at the location where it is being used. This is what comes to mind first for many people when they think of a PBX.

Here are a few benefits you can expect from an on-premise IP PBX:

  • No risk of fee increases

  • Lower total cost of ownership— especially as the system grows

  • Complete control and flexibility to switch solutions or mix-and-match

  • You can do what you want with your equipment

  • You will know your system’s capabilities since you are handling its deployment

IP phone set
CIP270 IP Phone

Hosted IP PBX/Virtual IP PBX

A hosted IP PBX is a phone system where the actual hardware for the phone system lives (or is “hosted”) someplace off-site. Also referred to as “cloud” phone systems, the components of a hosted IP PBX are hosted in the Cloud, which is simply a server located elsewhere and accessed over the Internet.

Benefits of On-Premise IP PBX Systems

  • More control since the system is maintained by your business

  • Server ownership reduces expenses over time creating a lower total cost of ownership

  • Failover capabilities through SIP trunking

Cons of On-Premise IP PBX Systems

  • Software upgrades and patches require on-site IT administrator

  • Higher setup costs and capital investment

Benefits of Hosted PBX Systems

  • Lower setup cost

  • Software patches and upgrades are handled by the provider

  • Selecting features and adding users easily performed via an online web interface

  • Great for remote users and employees that work from home

Cons of Hosted IP PBX Systems

  • Connection and voice quality depend on the Internet connection between the on-site phones and the service provider data center

  • Loss of on-site Internet means loss of phone service (although phone calls can be routed to voicemail, cell phones, or alternative locations)

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