With on-premise (or IP PABX) there is an actual 'box on the wall' that all of your Business’s telephones plug into. A hosted PABX, on the other hand - uses the cloud (instead of an actual box). 

Hosted PABX systems are far more reliable as they utilise the cloud. (meaning that even if the lines to a location are cut, callers will still be able to reach your automated phone system and employees will still be able to access all calls re-routed to their cell phones)

Hosted PABX systems have lower start-up costs than traditional IP PABX systems as they require no additional staffing as well as minimal equipment.

The setup of on-premise PABX involves purchasing and maintaining the correct function of all of the hardware required. This includes a server with the correct number of interface cards.

Where IP PABX require dedicated IT staffing, Hosted PABX systems are maintained by the service provider. This saves businesses on costs in the form of repairs, downtimes, maintenance and upgrades.

Costs

Purchasing associate on-premise IP-PBX phone system involves shopping for hardware, which includes a server with the proper number of interface cards (if needed) to be able to connect the telephone company with the IP phones. Hosted IP-PBX only involves purchasing IP phones, though a router and network switch may be needed to ensure there is one specifically dedicated to VoIP.

• On-premise IP-PBX needs in-house expertise who can manage it properly or additional costs incurred to out-source to IT MSP

• Expansions could result in complex projects depending upon the supplier

• On premise IP-PBX manufacturer could go out of business, leaving problems with managing root problems and EOL hardware



A Hosted PABX System will also be far easier and quicker to repair, install or relocate.

If you need help please see our PABX Installation page or our PABX Relocation page.