Hosted PBX or Hosted VoIP Overview

Hosted PBX or hosted VoIP, otherwise known as a Cloud-based phone system, is one where the provider houses the OP PBX in their data center as well as handles the technology required to provide the services to the phone system. The desk sets connect to the internet network at the customer’s site and the call, signaling, and features are handled through an IP PBX server at the provider’s location.

The provider of the hosted PBX charges a monthly fee for the service as opposed to an up-front capital expense with on-premises system. There are both unlimited and metered minute plans to suit all types of companies. A company that knows the amount of minutes spent on the phone in a given month can make effective cost comparisons. Extended features may come with additional costs.

On-premises PBX is also known as an IP PBX phone system. It is similar to a traditional PBX system that resides at a location, such as a computer equipment room or phone closet. The main difference is that IP routing is done with more current technology. The signaling is done with an IP phone to the IP PBX server using a LAN. Calls can go through a traditional phone company as well as voice over internet (VoIP) using SIP trunking. Gateways or telephony cards are used to connect the system to the traditional phone company provider.

The provider can be the one that already provides de service, though a SIP trunk can be configured for use with an internet service telephone provider (ISTP). An Asterisk-based system can be one of the most affordable options for an on-premises PBX due to the flexibility that is offered with open source software.

Low setup cost

No maintenance cost

It’s an Operational Expense (OPEX model)

Risk of fee increase

High setup cost

High maintenance cost, current and future

It’s and Ownership Model (TCO Model)

No risk of fee increase

Provider absorbs all the risk, work, and complexity

Fast growth or reduction

Automatic and non-intrusive software updates

You absorb all the risk, work, and complexity

You plan and execute with your own resources

To update or not to update?
Provider responsible for hardware and software

Frees resources to use in other productive areas

Provider has control over your system

Might not scale to large deployments
You are responsible for hardware and software

Need to budget

You have total control over your system

Difficult to scale to large deployments

Fast, easy, and cheap

Minimum dependency on in-house IT Services

Focused training on use of the system

Slow, complex, and expensive

IT Services is the owner

Multi-level training
Any size business that wants to spend IT dollars elsewhere

Small business or start-up that does not have in-house IT resources

Enterprises with available IT resources that need control of all aspects of their phone systems

Any size business looking for a customized solution
TelOnline provides the best of both worlds, and more. We have the solution that best fits your needs, be it HOSTED or ON-PREMISES or HYBRID. Contact our Consultants on Business and Technology and together we will find the best alternative, with the optimum combination of hardware and software, lowest cost, and top reliability. Contact us at: , T: +1 954.894.6181, F: +1 954.208.0220

Go back to TelOnline
Share on Google Plus
    Blogger Comment
    Facebook Comment


  1. Excellent comparison!

  2. Hosted Voip phone system and IP PBX are very useful now a days.They are with in budget and much efficient in use. IP PBX is a complete telephone system which provides telephone calls over IP data networks.The technology includes advanced communication features.Enterprises don’t need to disrupt their current external communication infrastructure and operations. With an IP PBX deployed, an enterprise can even keep its regular telephone numbers.

  3. You forgot to mention the mobile integration feature of hosted PBX, ideal for folks like me who doesn't require a desk to work, for detailed information visit ThinkTel, they also provide affordable solutions.

  4. Indeed, IRCTC has made an agreement with the travel company Make My Trip. Under this, Make My Trip will provide the live status of the train to the passengers. That’s also via Whatsapp. Now passengers can Check PNR Status & Live Train Status through WhatsApp.

  5. Only wanna input that you have a very decent web site , I love the design it really stands out. VoIP Phones Atlanta GA