We recommend a Cloud PBX solution over an On Premise PBX solution, but it is important to understand what an On Premise PBX is. Click here to jump to part 2 about Cloud PBX
For most companies the biggest concern when setting up an on-premise PBX system is the cost. There is an on-going argument about the long term cost of cloud PBX versus simply paying for an on-premise PBX system once off and owning the device indefinitely. The truth is a lot of people actually finance their on-premise PBX systems, which changes the cost comparison entirely. There are however a lot of other things to take into consideration.
- An on premise PBX which makes use of traditional Telkom lines is cost effective in comparison to a fibre (for instance). In the event of a failure to the data line, all calls can simply be made via Telkom. The converse of this is the higher calls rates charged by Telkom, but the business is still running. A cloud PBX system could be expensive, as another data line would be required, such as a separate fibre or wireless link.
- A cloud PBX system may lock the business into a single vendor, while an on-premise PBX system can use multiple routes with different data lines from various providers.
- Corporates generally who use over 100 extensions at a single site, could find that the monthly cost of a cloud PBX to be expensive versus buying an on-premise PBX system once off. Businesses this size typically have specific requirements and the onsite skill to support the on-premise PBX system.
- There are additional costs associated with owning an on-premise PBX, such as the vendor call outs if something goes wrong.
- When it comes to the upgrading the hardware of an on-premise PBX system, additional cards may be required for expansion or additional features.
Whilst we recommend a cloud PBX solution over an on-premise PBX solution, it is still important to understand what an on-premise PBX is. For any business switching over to a PBX system can be daunting, but it is an essential move to make if finding an efficient solution is important to you. Feel free to get in touch with us if you have any questions or if you are ready to switch to a cloud or an on-premise PBX system.
This article is part three of a three part series about cloud and on-premise PBX. We have taken an in-depth look at all the ins and outs of each system, so that you can make informed decisions when it comes to your telephony system. Part one was a basic overview of both systems and in part two we dissected cloud PBX systems.