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5 benefits of an on-premise PBX system

18 February 2019

Private Branch Exchange – or PBX – phone systems are an effective way to manage telephone communication within a business. A PBX is a private network employees can use to communicate both internally and externally using communication channels such as VoIP (Voice over IP), analogue, or IDSN (Integrated Services Digital Networks).

A PBX also includes features like call recording, voicemail, call transfer, voice menus, and call queues – all of which can improve the way your business communicates with clients and the outside world.

If you’ve decided to implement a PBX phone into your business, you might be wondering whether to opt for an on-premise or hosted system. In this article, we’ll look at five benefits of on-premise PBXs. It’s worth noting that these benefits are applicable even if you’re a small business owner.

Let’s get started.


1. Lower costs over time

Setting up an on-premise system will require a larger up-front cost than hosted services. The thing is, this is a one-time investment – once it’s paid, it’s paid. Hosted services, on the other hand, charge monthly fees that add up over time. So, in the long run, an on-premise PBX system will be cheaper.


2. Greater control and flexibility

When you purchase an onsite PBX phone, you have full control over the use and operation of your business’s communication system. This allows your team to manage and customise the system to meet your company’s current and future requirements, giving you the flexibility to make changes as you need them.  

Remember, these sophisticated phone systems come with a whole host of features. When you have full ownership of the system, you have full control over these features.


3. Signal via your own network (LAN) instead of over the internet

When you transfer a call from one onsite extension to another, the premise PBX system makes it happen. In other words, all signalling happens locally, just a few metres away from your employees. In contrast, a hosted system makes transfers at the provider’s switch, which could be states away.

This increased distance can cause latency and demands a stable internet connection round-the-clock. Signally via your own network is especially beneficial on days when your internet connection isn’t performing as it should.


4. Peace of mind

When you own your communication system, you know that it’s not going anywhere. There is no provider to rely on, no possibility of steep rate increases, and no risk of feature changes. Instead, you have total peace of mind knowing your business will stay connected – no matter what.


5. Keep your IT team on board

If your business employs an onsite IT team, switching to an on-premise rather than a hosted PBX from a legacy system will ensure a smooth and stress-free transition. You already know and trust your team – you know they have your business’s best interest as the top priority. What’s more, they probably have the skills and expertise to set up your new system.