Is it time to update your business telephone solution?

What choices are available?

Legacy ISDN based telephone systems are still available, but the higher line rental costs are pushing IT managers to consider broadband-based VoIP solutions that provide better value for the investment. The choice of VoIP and SIP trunking offers increased resilience and flexibility that that will allow the system to change as your business needs evolve.

Major telecom companies still provide ISDN. However, as Internet services become increasingly more robust and reliable, SIP trunking is the fast-emerging technology to support voice services.

On Premise or Hosted? That is the question.

SIP trunking is both cheaper and more flexible than ISDN, making it the sensible choice for your business. The hardest choice is actually whether to choose to maintain an IP-PBX onsite or opt for a cloud-hosted solution instead.

There are pros and cons of both hosted and on-premise solutions. There are some fundamental differences to each of the systems. The move to an IP business phone system is beneficial regardless of which system is ultimately chosen. However, knowing the differences will lead to a better VoIP phone system and a higher level of satisfaction for the all involved.

On Premise:

  • Higher initial cost and set-up cost
  • Lower monthly cost after expenses are covered
  • Ability to use SIP trunks to get lower-cost calls
  • Having a premise system gives user control to create, adjust and delete users as desired
  • The current carrier may not have to be changed
  • Server ownership reduces expenses over time
  • Expansions may result in complicated projects depending upon the provider
  • The technician may need to be called for upgrades and patches on software
  • Loss of power or system failure will result in callers not being able to get through, which stops business operations unless you have a SIP provider

Hosted:

  • Lower initial equipment cost and set-up cost
  • Providers have more resources than users, so new feature sets are possible
  • New feature installation is handled by the provider to avoid confusion
  • Picking and canceling virtual numbers is easy and fast
  • Moving a phone system is easy. IP phone is plugged into a broadband connection
  • Patches and upgrades of the IP system are handled by the provider
  • Loss of Internet or catastrophic event has no effect on operations because calls can be sent to voice mail or mobile phone. This is because of redundancy within an off-site facility that has safeguards including back up power sources
  • Low monthly service cost
  • Easy to add extra lines
  • Upgrades and new features are included
  • Extended features, like conferencing, may come with additional costs
  • Connections and voice quality are a result of Internet connection
  • Loss of Internet results in loss of phone service (settings can be adjusted so that it goes to voice mail or routed to a cellphone)

Considering the positives and negatives for both the hosted PBX and an on-premise IP-PBX, allows a company to determine the best phone system based upon the setup of their organization and what risks they are willing to assume. Companies will benefit from one over the other, so it is a matter of making comparisons prior to choosing which one to have installed.

To find out more about which option is best suited to your business, speak with one of our experts today.

About Dennis Turner