* Initial Cost of Set Up

Hosted PBX Services
Pros: Low setup cost, maintenance costs are raised by provider
Cons: Potentially higher ongoing service provider costs

Premise based PBX
Pros: lower ongoing costs, no risk of hidden fee
Cons: Higher setup cost, long-term maintenance cost that are incurred on cash up grade process

As far as the initial set up costs are concerned, hosted PBX proves better. If you go for on- premise/Real IP PBX, then you have to withstand the up gradation and maintenance on a regular basis. Moreover, you need to compare and check the ongoing service rate for hosted PBX services. This choice has to be made in accordance to your firm so as to keep a trade-off between all of these factors.

* Level of Complexity

Hosted PBX Services
Pros: The service provider is the host and all the risk, work and complexity are his concern.
Cons: Demand and supply may involve delay.

Premise based PBX
Pros: You have complete control of your equipment and you have to shape it according to your firm
Cons: Every expansion increases the complexity that you have to manage yourself.

In case of the premise based small systems, configuring changes can be easy but as the system scales, the complexity increases which is hard to manage for the company. But in hosted systems, your provider takes account of the risks upgrade and complexity issues but it is possible that he may not be able to incorporate the changes as quickly as you could yourself because at first he needs a thorough understanding of your need.

* Remote accessibility and Control

Hosted PBX Services
Pros: By giving up the control, you may be able to focus on your business.
Cons: Your service provider has the actual control and he is an intermediate to your own system.

Premise based PBX
Pros: You really do have control over every detail. An easy-to-use solution with careful management will give you a solution that matches your needs better than anything else can.
Cons: If you have the control, then you need to hire the team to look after the technicality issues.

The hosted systems, although take the control from you but keep you focused on your business. Whereas, on the other side, real PBX systems give you the control but boost up the monthly expenses as you have to pay salaries to the technical personnel.

* No restriction of size

Hosted PBX Services
Pros: Service provider has more resources to implement a solution you could not afford to do just for yourself and large scale implementation is easy and budget friendly
Cons: Takes time to adapt to your company.

Premise based PBX
Pros: You can expand your horizons for your growing needs for your concern
Cons: You may not have enough resources to do complex and costly things just for your sake, where a service provider might be able to do them easily for its hundreds of customers.

Under this heading, I would like to emphasize upon the size of the company. The small firms cannot put in a lot of resources and hence hosted services apply for them but if turn to the big giants, on- premise IP PBX is for them.

* Ease of Installation

Hosted PBX Services
Pros: It is the work of host /provider to handle the installation.
Cons: None

Premise based PBX
Pros: When you install the system yourself, you get to know more about your system’s efficiency.
Cons: High cost, slow speed and troublesome at times.

On implementing the real PBX based system yourself, you are able to know the true potential of your system but it may turn out to be troublesome sometimes. Although, hosted PBX systems arrange for cost effective, quicker and far easier application.

The results of a wise decision based on all the above mentioned aspects can have multifarious advantages and can prove very fruitful. But if any of these is ignored, it may pull a huge cost to pay for your neglect. Hence, a judicious decision should be involved while choosing amongst hosted PBX services and premise based business phone systems.

Author's Bio: 

Technology specialist at therealpbx.com ‘Adom Brown' is a specialist in Hosted PBX systems for small and medium business enterprises. The Real PBX is a leading Hosted PBX Services Provider that manages the Business PBX Platform using Unified Communication. Their IP PBX Systems deliver business class voice quality, real time customer assistance, scalable office PBX VOIP system and more.