Cloud vs On Premise Telephony

There are pros and cons to both hosted PBX solutions and on premise solutions. Which model is best for your business will depend on it’s size, growth and what it is you want from your telephone system. Having knowledge of what each system has to offer is vital before making a decision on which is best for you.


On Premise 

On premise IP- PBX work in the same way that traditional PBX worked but use modern technology and feature sets to bring them up to date. With many providers of on premise hardware offering flexible deployments of digital and IP telephones, users have greater control over their telephony and access to SIP trunking. SIP trunking can greatly reduce call costs making ongoing costs low with this solution. PBX require a server to deploy on which can be costs, however many are also able to run on existing virtualised environments already be in place.

Advantages of On Premise PBX

  • Feature rich and flexible deployment
  • Easily purchase handsets to add additional users
  • SIP trunking to lower call costs and lower ongoing costs
  • Staff training provided by provider
  • Deploy on existing virtualised servers (dependant on provider)
  • Customisable to business needs

Disadvantages of On Premise PBX

  • High initial cost for set up and installation
  • Higher maintanance costs for upkeep of hardware
  • May have to pay for upgrades to software


Cloud Hosted PBX 

Cloud based PBX on a hosted platform carry similar features to on premise solutions but remove the need for physical equipment. Hosted solutions are less of a strain on space and resources as only an internet connection is required to run the phones. This is especially true for small businesses who do not have the capital to invest in costly hardware. However, call quality depends on having sufficient bandwidth to support calls, meaning a quality internet connection is a requirement for this solution.


Advantages of Cloud PBX

  • Low cost to set up and quickly installed
  • No maintenance for upkeep of hardware required
  • Easy to add additional lines as company grows
  • Free calls often bundled as part of subscription costs
  • Upgraded when new software becomes available

Disadvantages of Cloud PBX

  • Subscriptions are on a per user basis, meaning monthly costs can rapidly increase for larger businesses
  • May attract additional costs for some services such as conferencing (dependant on provider)
  • Quality of calls is dependant on internet connection and available bandwidth


For advice about what solution is the best solution for your business, please get in touch with one of our team. You  can contact us at , 01623687750 or by using the form at the bottom of this page.