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Hosted PBX vs SIP Trunking For Your Business

Posted on: April 9, 2018

Hosted PBX and SIP trunking for an on-premise PBX are services that a business might consider to implement a phone system. There are many factors to consider when selecting a business phone system for your organization. Security, flexibility, scalability, and ongoing costs and maintenance are some of the key differences between choosing a hosted VoIP solution and a SIP trunking service.

They are both VoIP solutions with similar functions, but they differ in key logistical, technical, and financial respects. Here are some key differentiators between hosted PBX and on-premise services.

Upfront Hardware Costs
On-premise hardware is required for SIP trunking. To set up a hosted PBX, your office will need IP phones, routers, and business-grade broadband service, while V1 VoIP “hosts” the actual PBX servers and maintains them, so no additional hardware is needed. An on premise PBX and SIP trunking require significant upfront capital expenditure. IT staff must install on-site IP PBX servers and connect a SIP trunking service. In addition, it is often recommended that a business install separate Internet connectivity for the SIP trunking service.

Even More Ongoing Costs
Once you set up your hosted phone system, you will pay a monthly subscription fee to use the VoIP service. One pricing scheme that SIP trunking services use is per channel. Each channel allows you to make one phone call simultaneously. If you need to have ten employees on the phone at the same time, you might need 10 SIP channels to accommodate them. Charging by the channel is typically a flat rate per month plan. SIP trunking services can charge per minute.

Maintenance
With hosted PBX, the only maintenance responsibilities come when adding users, changing features, and other internal housekeeping while V1 VoIP takes care of server and software maintenance. For on-prmise SIP trunks, you would handle everything. As the servers are stored on your property, and their upkeep will be left to the owner.

Scalability
SIP trunking phone systems can scale out to an extent, but then require an additional purchase of more on-premise servers when you expand significantly. One PBX can typically handle up to a couple hundred phones. V1 VoIP has virtually unlimited space for your users. Hosted VoIP phone systems allow you to add new phones and users to your phone system in a few simple steps. It’s typically so easy that a non-IT professional can handle it.

Still not sure which of these systems works best for your business? Contact V1 VoIP today and we will walk you through the pros and cons for your company to make the best decision.