Hosted PBX or traditional PBX? - This has been an issue in the minds of customers through the ages and it introduces dilemma in the minds of the users. The best option is to perform a comparative analysis and see what Hosted PBX has to offer in addition to a traditional on-premise PBX.
Capital Expenses: Incase of traditional PBX, the complete PBX equipment has to be bought, set up, installed and configured at the, location of the user. This requires a lot of expenditure thereby rendering the system unusable for small business firms. Hosted PBX on the other hand is more of a concept. In this, the PBX equipment is maintained off-site by the service provider and the user just has to pay for the services and the user is good to go. Thus, capital expenditure is nullified in case of a hosted solution.

Operational expenses: The massive on-premise system is a huge structure containing hundreds of tangled wires. This system is difficult to maintain since it requires specialized workforce to maintain this system. This involves additional investment of time, money and effort by setting up a team of technically sound people that are proficient in providing a solution to any problems that arise in the system at any point of time. Hosted PBX systems on the other hand liberate the user from the worries of operational expenses by providing them with technical support services that look after all the issues arising in case of system failure.

Updates: Traditional business phone system needs to be kept up-to-date with the latest advancements in the field of software and hardware. This is essential so as to help the supporting business firm to stay competitive in the competitive business world today. Hosted PBX providers keep the system updated with the latest hardware and software requirements thereby reducing the recurring expenditure on the up gradation of the existing systems.

Wear and tear: Traditional PBX system is an asset to your firm and thus, if it wears out, you will have to deal with the costs involved in keeping the system intact. This raises the expenses involved since the system will be your responsibility. Virtual PBX on the other hand is not a physical asset. It is just a service and thus, if the system wears out, it will be the responsibility of the service provider to get the system replaced or repaired and you will just be concerned with the service provided.

Scalability: While setting up an on-premise PBX system, one has to purchase a server with a fixed number of ports despite the fact that the user might not have such massive requirements. This leads to under-utilization of resources. Scalability is a feature that enables the users to ask for as much as they require and pay for exactly what they use. This feature ensures constant cost of resources each time any alteration is done. Thus, this gives liberty to the users to add, delete or modify business requirements as per the changing business needs at all times.

All the above points simply indicate the small business PBX is far better than a traditional on-premise system that fails to encounter a solution to the problem of expenditure and scalability. Hosted PBX is thus a solution that offers a great level of flexibility, mobility and reliability to the user and thus, turns out to be a profitable deal.

Author's Bio: 

VOIP Expert at The Real PBX ‘Aditi Tyagi’ is a specialist in Small Business systems. The Real PBX is a pioneer in providing Hosted PBX Systems that deliver business class voice quality, real time customer assistance, scalable office Business Phone system office and more. Their enterprise class PBX VOIP services include top notch features like Unified Communication. Their Virtual PBX Systems deliver business class voice quality, real time customer assistance, scalable office etc.