What is PBX?
PBX is an acronym for ‘private branch exchange’, so in simple terms, a PBX is a private phone network used within an organisation. To put this in perspective, switchboard operators were operating the first PBX systems when they once routed calls by hand.
Why have a PBX?
For many businesses, a PBX system makes sense. The PBX allows for calls to be transferred internally and teams can place outgoing calls on shared phone lines, reducing the cost to the business of extra phone lines and associated additional monthly charges.
Hosted PBX systems also utilise VoIP (internet technology), operating ‘in the cloud’. With this setup, the phone features are many, including voicemail to email; call queue monitoring; video conferencing; integrations with CRM platforms and much more.
Cloud PBX, hosted PBX or on premises PBX?
You’ve probably heard these terms thrown around in this space. To clear up any confusion, cloud PBX and hosted PBX are actually the same things.
If you’ve decided on a PBX system for your organisation, the two available options are hosted (cloud) PBX or on-premises PBX. Here’s a quick comparison of the pros and cons of each:
| HOSTED (CLOUD) PBX | ON PREMISES PBX | |
| Who is responsible for the technology required to host the system? | The provider. Supports multiple locations. Infrastructure is offsite | In-house staff. As the system is in one fixed location on the premises, it does not support multiple locations. These will need to be set up separately |
| Maintenance needs: software and equipment upgrades and support | Managed by the provider. Customer support is included | In house staff are responsible for this |
| Financial aspects | The set-up cost varies from provider to provider but costs are usually lower, or per user/line | Higher setup cost, including infrastructure needs. Potentially higher maintenance costs |
| Onsite hardware required | Only phones | PBX system and phones |
| Customisation of phones | May be limited by what is required by the provider | Full system customisation can be achieved |
What’s the best PBX option?
Small to medium businesses stand to benefit more from hosted PBX, whereas the larger enterprise-sized organisations are more likely to have the technical staff and budget available for on-premises PBX setup and maintenance.
Keen to know more? Fill in the form and we’ll be in touch to discuss whether hosted or on-premises PBX is the best option for you.
