How to Choose the Right IP PBX for Small Businesses

In recent history, we’ve seen an increase in the popularity of hosted-private branch exchange (PBX) solutions. In fact, it’s safe to say that these virtual telephone systems have well and truly taken over.

However, it’s important for small business owners to know what they’re looking for and consider the pros and cons of an on-site OBX system as opposed to a hosted PBX system.

In the following guide, we’re going to look at all the different considerations that you need to make in order to make an informed decision when choosing between these two.

  • Check the TCO

On-premise systems are usually more expensive in the beginning, whereas hosted systems come in budget-friendly monthly payments.

For best results, you should always consider the total cost of ownership (TCO) when looking at either of these systems to replace your current phone network.

For instance, research shows that cloud-based systems typically have a longer total cost of ownership when compared to on-site systems.

Not only that, but the upfront costs of on-site systems usually disappear within a year after making the investment while a hosted PBX system will see increased initial costs.

  • Compare the Values of Functionalities

Both on-site and hosted PBX systems offer similar technical capabilities. However, these features can come in different variations depending on the package.

For example, a hosted PBX provider offers per-user chargers for their features, while onsite PBX systems offer better versatility to the consumer. As such, the latter systems offer better customization features.

If you want a customizable system, then you should make sure that the features and functions that you want are a possibility with your provider.

  • Always Consider User Experience

The great thing about on-site PBX systems is that they are designed to prioritize data traffic to improve voice quality.

Whereas hosted PBX solutions often allow you to choose based on your preferences and often come with a SBC device.

This enables you to improve data but it can make your system more complicated.

  • Is It Easy to Customize?

On-premise systems are usually much easier to customize compared to hosted options because they’re managed by an on-staff IT professional.

The provider is responsible for customization when it comes to hosted systems because the vendor is responsible for customizations based on the package offered.

If you really need cutting-edge customization with your system then you should look into an on-site PBX system. If you’re working with a hosted PBX system then you should make it clear what customizations you need exactly.

  • Ask About the Tech Support Cost

If you’re managing your own company’s information then you can only do so with a professional and trained IT staff implement which you’ll need to retain once you get a hosted PBX system.

This means that you’ll need to pay more in support costs as you’re not paying your IT team as well as the provider.

However, a hosted PBX system can also come in handy for a small business that doesn’t have an IT team because it means that you don’t have to spend money on hiring technical staff.

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