Which Phone System: Onsite phone system vs. Virtual phone system

Communication is vital to business. It’s essential, therefore, that you’re working with the right phone system, and equipment, to suit the needs of your company. Aside from standard hardware decisions, one of the most difficult choices you’re likely to make is which kind of phone system you’ll be using. Will you opt for a hosted virtual phone system, or one that has its base on your premises? There’s no question that a virtual phone system will do wonders for your business, but which should you choose? While no one can tell you the right answer here are a few of the things that you may like to consider, with features compared for your deliberation.

The basics: What is an onsite phone system, and how does it differ from a hosted virtual phone system?

Onsite phone system: Much like a landline telephone system, an onsite PBX (private branch exchange) is one that is controlled via hardware that is kept at your location. The main difference is that, rather than connecting calls via a switchboard and a multitude of wires, the system relies on an Internet connection, and a single internal server to redirect communication.

Hosted phone system: As you’d expect from its name a hosted PBX is monitored and maintained by the provider at their location, rather than at yours. Computers and phones are connected to a router, which enables the system’s features, calls, and main source of signal remotely.

Costing: What is the most cost effective way to communicate?

Onsite phone system: When it comes to installing an onsite PBX you will be expected to foot the bill for new hardware, software updates, and upgrades, while the cost of maintenance will fall upon an IT specialist or contractor that you employ. However, staff training is often included in the package price, while costs may be much less once expenses have been covered.

Hosted phone system: With a hosted system you won’t need any new equipment, and so the cost of setting up will be far less than a conventional phone system. In addition, the provider maintains lines remotely, while upgrades and updates are included, and simple fixes will be far cheaper. However, responsibility for equipment, training, and programming usually falls to the customer (that’s you). Costs can vary once your new system is installed and operational.

Scalability: How will my business grow with each phone system?

Onsite phone system: It can sometimes be more difficult to expand your business if your PBX is managed onsite, as you’ll be required to think about the extra pressure you’re placing on servers, and purchase additional equipment to facilitate growth. While the cost of such hardware is usually minimal, is this yet another consideration you’d hoped you wouldn’t have to make?

Hosted phone system: When it comes to scalability nothing compares to a hosted PBX, and expanding your business will be as easy as instructing the provider to install additional lines. Businesses with a hosted phone system are good to go almost immediately whenever they need to upgrade, although it’s worth researching the costs of such additions when you receive your initial paperwork.

The pros and cons of each system: What am I signing up for?

Onsite phone system: With onsite PBX you’re signing up for control over your communication, convenience, professional staff training, and the ability to introduce SIP trunking. However, you’ll also need to spend longer looking for the right provider, will have more restrictions in place when you come to expand, and may experience problems should your server fail, or a power cut occur.

Hosted phone system: Hosted PBX is quicker, and more convenient, to install, easily scalable, receives frequent updates and upgraded features, and won’t falter during a power cut or natural disaster. On the downside hosted phone systems are often less flexible due to bandwidth restrictions, and may feature less customisable options that an onsite PBX. You could also find that your service’s reliability fluctuates with your Internet connection.

There are, of course, other issues that you’ll need to consider, including reliability and security.  The outcome of such research will depend upon whom you’re speaking to, or receiving your final product from.

So, what should I be considering? When it comes to deciding upon the virtual phone system that your company will be best off using it is important to think about the needs of your business; what features would benefit your daily operations? What elements of communication matter most to you? What’s your budget? Where do you see your business in five years? Choosing a virtual phone system shouldn’t be easy, as you have a lot of considerations to make. Please do approach us with any questions that you may have, though.

To find out how our hosted VoIP phone systems could benefit your business please get in touch today; we’re just a click, or a call, away, and will revolutionise how you do business.