Be that as it may, most end-user customers have wrongly assumed that on-premise PBX directly competes cloud PBX. However, each PBX deployment method actually exists to meet customer needs. And, therefore not a question of whether which platform is better than the other. Thus, below we look at several pointers that might help in making a choice either acquiring a PBX system as an appliance or implementing it as a cloud service.
In fact, acquiring one solution and leaving the other will essentially narrow down how much responsibility can the company take for running the phone system. More importantly, the decision will also touch on the amount of control the organization intends to have over the PBX phone system.
All in all, small companies and startup establishments would favor relegating the responsibility of running the phone and overall control to third party contractors. However, big organizations with a well-resourced IT department would most likely purchase a hardware-based PBX solution. So that full control of the telephone system can be achieved internally including management and general administration.
Choosing between On-Premise PBX and Cloud PBX
The available budget
Specifically, acquiring a cloud-based PBX phone system does not require a lot of funds upfront. Being a subscription-based service, the initial cost of acquiring cloud PBX is actually much lower. Likewise, the pricing model for cloud PBX tends to be flexible. Hence, customers have a choice of committing to making manageable payments on a monthly or annual basis. The initial cost of the acquisition depends on the projected resource requirement and actual usage requirement.
When a customer purchases an on-premise solution, the initial cost of acquisition will definitely be higher. Because the cost of the PBX appliance including the connection modules will have to be paid upfront. Actually, this arrangement will be cheaper in the long run. For there will be no monthly payments which can sometimes be inconveniencing in case of late remittance.
Availability of in-house PBX experts
When a customer chooses an on-premise PBX solution, the appliance will be installed at the company server. Since the PBX system is under the management of the company IT staff, internal technical skills and expertise will be critical. Therefore, by choosing to install the hardware-based solution, the general PBX administration will be done by the company IT staff. Some of the administrative duties performed by the IT staff include installing firmware updates, trunk management, creating and purging phone extensions, review of the call detail reports among others.
On the other hand, by installing a cloud-based PBX system, the customer has chosen to delegate full ownership of the voice system. Functions to do with trunk management, extensions, and the overall PBX administration will have to be done online via a cloud-based account. The solution gets delivered through the internet. In as much as cloud-based solutions come with softphones, the customer will have to purchase the physical desk phones.
The Cloud PBX versus appliance-based PBX
A reliable internet connection remains a key requirement for cloud solutions. As a matter of fact, successfully running the cloud PBX entirely depends on the availability of a stable internet connection. So, in the event that the internet connection goes down, the PBX system will not be available. This is not the case with the appliance based PBX.
Cloud PBX solutions tend to be much more flexible than an appliance-based phone system. For instance, shifting the official place of operation, say, from one country to the other will be much easier with a cloud-based solution. What is more, a company can easily fold up operations without having to worry about how certain major can be disposed of.
In conclusion, both cloud PBX solution and appliance-based PBX come with different strengths and value proposition. Maximizing the value provided will certainly depend on the company size plus financial capability. By the same token, the level of flexibility required and the availability of skilled staff still remain key factors.
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