Hosted PBX vs Standard PBX

Functionality

The bulk of the functionality on hosted and on-site PBX systems can be replicated, though it is inordinately more expensive to do so on an on-site option. Furthermore, the maintenance and service burdens of an on-site phone system fall on the company that uses it or will be charged at a premium by the telephone service provider. Additionally, the exposure to failure of an on-site system is pronounced whereas a hosted system is virtually unstoppable under any circumstances. Some more side-by-side comparisons are as follows-

Hosted PBXStandard PBX
Up-Front CostsVery LowVery High
Support CostsLowModerate
Cost Per Minute on Incoming CallsModerateLow to Very Low
Shares Incoming Phone LinesNoYes
Routes Calls to Any PhoneYesNo
Supports Distributed EmployeesYesNo
ScalabilityVery HighLimited
Call CapacityVery HighLimited
Full Feature SetIncludedExpensive Extra
Fault TolerantYesNo or Expensive
ACD QueuingIncludedExpensive
Distributed AdministrationYesNo

What to Choose?

When a Standard PBX System Makes Sense

  • All employees are physically located in the same office
  • High up-front costs are acceptable in exchange for the lowest monthly cost possible
  • There is no need for toll-free service for callers
  • Larger companies
  • There is little likelihood of change in company size

When a Hosted Service like VirtualPBX is the Better Choice:

  • Some employees telecommute or work away from the main office
  • There is no main office – the company uses a “virtual” office
  • High up-front costs are not an option
  • The company wants to offer toll-free calls to its customers
  • Small companies
  • Companies that expect their needs to change
  • Incoming call capacity needs to be high
  • Fault tolerance and system reliability are important
  • There is no desire to dedicate employees or contract outside for PBX support

For a complete list of the cost-saving and performance boosting features and benefits of a hosted business telephone system from VirtualPBX, visit the plans comparison page to learn more.

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