The Battle of the PBX: Cloud PBX vs. On-Premise PBX

Anh Luu
March 3, 2017

When it comes to phone systems, traditional techniques might not always deliver the best results for your company because of its higher set up fees and maintenance costs. Since we’re living in the transitory period of call technology, companies are still hesitant about switching from hardware to software.

Back then, on-premise PBX phone systems were the norm. It was common to have entire closets dedicated to IP-PBX hardware, and to call a technician to come install new integrations or to add more users onto the system (such as in the case of hiring new employees). If you could imagine, this was quite the hassle. Luckily, as technology continues to grow at an exponential rate, modern phone systems have finally caught up to the technological demands of the 21st century.

If you’re still hesitant about making the switch to a Cloud PBX, we’ll help solidify your decision. Here are the pros and cons of each phone system:

Cloud PBX vs. On-Premise PBX: Setup Costs

The Cloud PBX wins out almost every time. Since all the most integral parts of the phone system are already stored up in the Cloud, setting up is both easier and cheaper for businesses. On the other hand, setting up an onsite PBX system for a mid-sized company could cost up to $75,000 up-front.

Cloud PBX vs. On-Premise PBX: Maintenance Costs

If you have an on-premise PBX system, you’re in charge of maintaining it (and trust us, there will be issues). If you fire or hire employees, you’ll need someone to edit them in and out of the system for you. If you want to integrate a new module into your system, someone will need to come and install that for you. If your phone system breaks down, someone will need to come and fix it for you. All of these tedious issues will come at a substantial cost.

The Cloud PBX? Zero maintenance costs. Adding or replacing users can be done within minutes over the phone with a representative. The same goes with software integrations, extension additions, configurations, and so on.

Cloud PBX vs. On-Premise PBX: Scalability

If you have employees who work from home or are out of state, you can easily enter these remote users into your phone system without any hassle at all with a Cloud PBX. This freedom allows you to expand your business anywhere in the world. Furthermore, modern Cloud PBX systems can also handle high volume calls to ensure first class quality even with a heavy stream of callers.

With the traditional IP-PBX (on-premise hardware), you’re chained to one to location unless you’re willing to pay more to include each remote user into the system. High volume calls are tolerated, but if the hardware breaks down or disconnects due to overload, guess who will have to call a technician?

Cloud PBX vs. On-Premise PBX: Customization

On-premise PBX systems prefer to set all the customizations during the initial setup, but that doesn’t leave much room for changes and improvements, does it? The customer is often left with the IT to figure out how to create an effective IVR system without any further guidance from their IP-PBX providers.

With the Cloud PBX, companies are given more room to make changes to their phone systems once they discover what works and what doesn’t. You don’t need to call for a technician to come help you, and you certainly won’t have to pay any extra fees. The Cloud PBX allows you to make more changes faster for no costs.

Cloud PBX vs. On-Premise PBX: Conclusion

We hope that these tips will cement your decision to try out the modern Cloud PBX. Going virtual will save you thousands of dollars and hours of maintenance.

The Cloud PBX wins on scalability by allowing your company to handle high volumes of calls while maintaining its quality on all ends. Customizations are actually encouraged, as providers understand the importance of A/B testing in this industry.

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