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Onpremise vs hosted PBX

More and more businesses are moving to VoIP solutions.  If you are thinking of upgrading your phone system you are most likely going to go with a VoIP phone system.  A big question that comes up is whether to go with a hosted or onpremise solution.  Before you make your decision you really need to analyze your needs and growth capabilities.  If you choose the best computer service firm such as NOYNIM you will always get a fair and honest recommendations.

In most cases it is more cost effective to have an onpremise phone system.  Here are the requirements for both solutions:

  • Setup QoS and VLANs on your network
    • Most people don’t do this but it is a must
    • NOYNIM recommends using layer 3 functionality/vlan segregation and have a converged network
    • NOYNIM does not recommend two separate networks as that is more overhead and not scalable
    • Purchase phones
      • Most hosted solutions require you to purchase your own phone

The only main difference in an onpremise solution is you will need to purchase your own server.  Since the VoIP software is free you only need a basic server which is under $2,000 with five year support.  If you do the math, your break-even point for hosted vs onpremise PBX is most likely around 18 months to be conservative.

One important thing to keep in mind is that your hosted PBX vendor should usually be your ISP/telco.  VoIP uses SIP/RTP and once that goes on the internet there is no QoS applied.  While hosted PBX providers will tell you that they use codecs to overcome this it’s still an issue.

Also, if you plan to grow over 15 users a hosted solution becomes too expensive.  Businesses are switching ISPs every 3-6 years so imagine the time it takes to reprovision 15+ phones.  If you have an onpremise solution which NOYNIM, Denver Computer Service, recommends you will only need to re-provision your trunks to the new ISP.


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