Hosted PBX vs Standard PBX


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 PBX Standard PBX
Up-Front Costs Very Low Very High
Support Costs Low Moderate
Cost Per Minute on Incoming Calls Moderate Low to Very Low
Shares Incoming Phone Lines No Yes
Routes Calls to Any Phone Yes No
Supports Distributed Employees Yes No
Scalability Very High Limited
Call Capacity Very High Limited
Full Feature Set Included Expensive Extra
Fault Tolerant Yes No or Expensive
ACD Queuing Included Expensive
Distributed Administration Yes No

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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