There are differences between the two options. Understanding benefits and limitations makes it easier to determine the best option for a particular organization.
Hosted IP-PBX
- Lower up-front equipment cost
- Lower Initial set-up cost
- Minimal maintenance costs
- Easy to add extra lines
- Upgrades and new features are usually included
- Higher monthly cost due to renting features/system
- SIP/IP Trunks only
- Hosted IP-PBX only supports IP Phones (Requires CAT5 or better wiring for all phones)
On-Premise PBX
- Higher initial equipment cost
- Higher initial set-up cost
- Minimal maintenance costs
- Lower monthly cost than Hosted
- No monthly cost for features/system
- Analog lines, PRI, or SIP Trunks all work (SIP is current & prevalent)
- By leasing equipment, monthly costs are usually lower than Hosted
- On-Premise PBX may support analog devices (faxes, etc.)
- On-Premise PBX may support NON-IP Phones (Avaya – Digital Phones) (No CAT5 required)
- On-Premise PBX may be installed at a Co-Location facility for Resiliency