Perks of Cloud-based PBX over On-Premises PBX

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On-premises PBX systems have been around for years now, while cloud-based systems have only started offering services recently. This article focuses on enlisting the benefits of moving to a cloud based-PBX rather than an on-premise PBX.

On-premises PBX systems have been around for years now, while cloud-based systems have only started offering services recently. This article focuses on enlisting the benefits of moving to a cloud based-PBX rather than an on-premise PBX.

The private branch exchange (PBX) is a business telephone system that switches calls between users on local lines. It enables two or more users to intercommunicate within and outside the organization without requiring separate external lines that connect each user to the telephone company’s main office. PBX can be mainly categorized into two types: on-premises PBX and cloud-based PBX.

On-premises PBX, also known as on-site/traditional PBX, refers to the system where the server needed to operate the network, commonly termed as the PBX box, is physically deployed at the organization’s site. On-premises PBX uses copper-based telephone landlines that enter an organization’s premises, and connect to a PBX box. This box contains switches that distribute calls among different telephones in an organization.

Cloud-based PBX, also known as hosted/virtual PBX, has the server located off-site and built in a data center. A reliable third-party service provider manages the hosted server. Users access the virtual phone system via the public or private internet.


Cost-Effective

Cloud-based PBX is efficiently cost-effective because it allows organizations to avoid the high costs of in-house installations and regular maintenance. On-premises systems offer larger upfront costs because typically organizations have to buy and install costly hardware equipment including appliances, servers, interface cards and licensing, etc. Cloud-based PBX systems have a lower upfront cost because a virtual service provider hosts almost all of the hardware, and typically organizations only need to align appliances with the service. 


Easy Maintenance

Another benefit of cloud-based PBX is that a hosted service provider performs the system updates, which eases the task of server maintenance. The upkeep of an on-premises PBX is the responsibility of the organization as the physical box containing all the functionalities of the system is within the premises. Skilled on-site IT staff must manually maintain and upgrade the servers, which takes away IT resources from other important projects or tasks. In cloud-based PBX system, the hosted service providers remotely update the servers. New software updates are easy to roll out in a cloud-based PBX system without requiring an IT administrator to make server changes.


Flexibility

Cloud-based PBX systems give organizations the flexibility to get the latest features without dealing with complex hardware updates. On-premises PBX systems have their proprietary phones that cannot be configured with a different operating system. This means phones are only usable with systems from the same vendor. With the cloud-based PBX organizations can easily integrate and switch their existing telephonic hardware.


Scalability

Scalability is a significant reason to switch to the cloud-based PBX system. Typically, an on-premises PBX system constrains a certain maximum number of internal devices to a certain maximum number of external telephone lines. Thus, scaling with on-premises PBX systems requires adding additional servers and moving equipment. In contrast, cloud-based PBX allows organizations to have a phone system that is scalable alongside the organization’s growth. It is a straightforward and easy process to add or remove users in a cloud-based PBX.


Bottom Line

Cloud-based PBX is the newest system in the PBX technology that has transformed and revolutionized the telecommunications industry. The system offers effective cost and maintenance solutions and has a degree of flexibility and scalability that cannot be matched by the on-premises PBX systems. 

Thomas Averson

Thomas Averson

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