Quality communication is vital to all businesses. However, many companies tend to overlook that fact from time to time. Part of the reason for this is that there are so many options on the market. This makes trying to find the best solution confusing. For example, what is the difference between a Hosted PBX and a Traditional PBX? In order to find the best fit for your company, you need to understand how they differ.
Hosted PBX vs. Traditional PBX
First of all, what are they? In order to understand if either one fits your company’s profile, you need to understand what they are. A Traditional PBX is an on-site system. This means that the entire system is physically at your business location. You communicate with an IP phone via a LAN line. Thus, you will have to maintain your own servers and perform maintenance on them. A Hosted PBX, on the other hand, operates through the cloud via a third-party service. They perform the upgrades and maintenance rather than you.
Most—if not all—businesses can’t afford lost data or downtime. Unfortunately, this can happen very easily. Whether you suffer an accident or a natural disaster, you can experience downtime. This is especially true if you have an on-site system. However, a cloud system not only preserves your data but can also redirect calls to alternate sites or mobile devices.
A Traditional PBX requires that you purchase all of the hardware and software. It also dictates that you hire an IT team to maintain and monitor your infrastructure. Hosted PBX systems don’t require this initial investment cost.
When you hire new employees, how do you give them their own lines? If you have a traditional system, you have to install new hardware and physical lines. Hosted PBX systems do not require physical changes to your equipment to be scalable. Instead, your third-party services takes care of getting your new employees set up.