IT Services: Hosted VoIP vs. Premise-Based PBX: Which is the Better VoIP Provider?

    Our friends at the awesome SMB IT consulting firm, All Covered, talk a bit about the advantages of hosted VOIP. I'm sure their great experience working with M5 has shown them why hosted VOIP can have so many advantages over on-premise PBX.

    Hosted VoIP vs. Premise-Based PBX: Which is the Better VoIP Provider?

    Hosted VoIP actually evolved from PBX. Originally utilized as an organization’s manual switchboard or attendant console operated by a telephone operator, the telephone exchange tool took a somewhat wayward turn when Mark Spencer of Digium developed the first open-source PBX software toward the end of the 90’s. From a means that allowed in-house workers to make connections among the private organization’s internal telephones, they have become VoIP centers that were hosted by operators or hardware manufacturers. These modern IP Centrex systems still provide a means for efficient, cost effective internal communication but they have moved so far from the original concept of the PBX that the term barely applies anymore.

    VoIP PBX uses the Internet Protocol to carry calls. Technically, nothing is being ‘exchanged’ anymore with this innovative communication device. The abbreviation PBX remains simply because it is widely understood.

    The Efficiency of VoIP

    From installation to maintenance, as well as configuration management and customized application development, hosted VoIP proves to be more efficient than premise-based PBX. Hosted solutions are less likely to incur post-installation problems since pre-installation site reviews are usually conducted by experts. Hardware and software upgrades are much more easily managed via a hosted VoIP solution than a premise-based PBX. The vendor or IT company manages the upgrade and puts it up once it is ready, making the transition smooth and stress-free. Any Hosted VoIP also costs significantly less because the amount of customer-premise equipment is minimized.

    Small Businesses Stand to Benefit the Most

    Because of the communication technology’s efficiency and cost-effectiveness, small businesses have the most to gain from setting up a hosted VoIP service within their company. The full featured phone system takes less time to install, less hardware to maintain, and even less money to spend for the small business IT operations. Administrative functions are performed using a browser-based Web portal on the Internet.

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