On-Premise PBX or Cloud PBX?

11 February 2021 Tags:

Businesses are switching from PSTN to IP-based phone systems in a growing number. With the trend becoming inevitable, businesses are confronted with the choice between an On-premise PBX or Cloud-based PBX deployment. Of course, there are fundamental differences along with specific benefits to each option. Thus, the considerations between these choices will differ for every business.

In this article, we will discuss the On-premise PBX and Cloud PBX solution along with their specific benefits and some of the factors that you must consider to figure which PBX solution would serve your business better.

On-Premise PBX

With an On-premise PBX solution, the hardware will be installed at your office location. In this scenario, your business will have to invest in phone system hardware, server equipment, networking, and more. Additionally, your IT team will be responsible for all the maintenance and updates regarding the system.

Benefits of On-Premise PBX

1. Having your own server equipment and network provides more control.

2. Your IT team can apply their own additional security-based solution to increase the level of security. As a matter of fact, here are some recommendations from the VoIP.ms team: https://wiki.voip.ms/article/PBX_Security.

Cloud PBX

With a Cloud PBX solution (also called Hosted PBX), you do not have to worry about any hardware or networking equipment. Everything is managed by your service provider. The only equipment you need to invest in is your devices (softphone, desk phone, etc.). Moreover, it is the responsibility of your service provider to take care of all the network maintenance and upgrades.

Benefits of Cloud PBX


1. Setting up a Cloud PBX takes very little time as compared to an On-premise PBX.

2. It allows you to add new phone lines in a matter of seconds.

3. Fewer hardware requirements result in an overall lower cost.

4. There is no need for an experienced IT team to manage and maintain your Cloud-based PBX solution.

Factors to Consider

1. Price

One of the major differences between On-premise PBX and Cloud-based PBX solutions is the upfront cost. Cloud-based solutions require low equipment cost and set-up fees, you can get started with a smaller budget. For an On-Premise solution, you will need a greater budget for having your own hardware and other necessary equipment. If you are running on a restricted budget, a cloud-based deployment is the right choice for you.

2. Control

With an On-Premise PBX solution, you get complete control over your business communications. You can modify the system as needed. Unfortunately, the Cloud-based PBX system does not offer the same control. In this case, your business is relying on a third party for running the PBX system. Nonetheless, it is a great advantage for business owners working with fewer resources, and luckily VoIP.ms offers a great deal of control to its users.

3. Staff

If you go for an On-Premise deployment, then you must have a specialized IT team to install, upgrade, and maintain the PBX solution. However, with a Cloud-based deployment, there is no such requirement. Everything is taken care of by your cloud-based PBX service provider. Thus, making it an ideal solution.

Final Thoughts

Both On-Premise and Cloud-based PBX solutions have their own set of advantages. Therefore, choose the one that better suits your requirements. If you have lesser resources and tight budgets, opt for a cloud-based PBX solution. If you have more resources, a greater budget and a wish for more control, you might want to consider an on-site PBX solution.

No matter what you choose, while VoIP.ms offers a complete Cloud-based PBX, it also fully supports SIP Trunking for PBX users. As a matter of fact, check out VoIP.ms configuration guides for PBXs right here: https://wiki.voip.ms/article/PBXs .

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