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    IP PBX – Increasing Business Productivity, part 2

    We have reviewed some of the major advantages of IP PBX for both users and IT management perspectives in the previous article. In this column, we will discuss how you may want your IP PBX system to be built and maintained. There are two types of IP PBX services: Hosted IP-PBX and On-premise IP-PBX.


    What is hosted IP PBX?

    Hosted IP-PBX, also known as Cloud PBX, is an IP PBX system in which a service provider is responsible for managing and maintaining all the equipment and software at a datacenter on behalf of your company. In this type of hosted system, you do not need to have all the equipment and software hosted on premise in your office. The systems are always updated by the service provider, so you do not need to worry about the technical details or effort required to perform maintenance tasks.


    The minimum requirements to utilize a hosted IP PBX system is to have an IP phone handset. An IP phone software application can also be a subsitute for the physical phone requirement. Users can make phone calls through the internet via a server in the cloud. You can also easily add and delete users from a Web Administration GUI.


    Traditional PBX and some on-premise IP PBX systems require construction to pull physical phone lines to the new phones or to the physical PBX hardware itself, but for a hosted IP PBX system, those requirements are usually not required.


    What is On-Premise PBX?

    On-Premise PBX is, as the phrase describes, an IP PBX system in which you are required to have the necessary equipment and software at your location. In this setup, you would be required to do the configuration by yourself, which means you will need to assign an internal resource to manage all of the technical requirements, or you may have to allocate budget for an external resource to handle those tasks for you. You can easily access, customize, and add features as you like, especially if you want to build a large-scale enterprise phone system. For an On-Premise PBX system, the initial cost would be quite high due to having to purchase all of the equipment and licenses. However, the ongoing costs would be relatively cheaper because you do not have to pay maintenance fees to a hosted/cloud IP PBX service provider.


    These are the some of the considerations you should be aware of:

    1. Total Cost of Ownership (setup, maintenance, service provider etc.)
    2. Bundled Features
    3. Ease of Customization
    4. User Experience
    5. Cost and Ease of Technical Support


    Even though an on-premise IP PBX can be utilized over the internet, you still have the requirement to pull and contract a land line from PSTN provider (coming from outside world) to your office.


    There are two types of these lines and the differences between those types are as follows: BRI (Basic Rate Interface) and PRI (Primely Rate Interface).



    SIP (Session Initiation Protocols) stands for technology standard which carries voice data between endpoints. In an IP PBX system, SIP carries voice data between a VoIP (Voice Over IP) network and the phone company-provided PSTN lines.


    These are the technical capabilities of SIP:



    Let’s look at the cost comparison table of SIP and PRI.



    Previous article: What is IP PBX? – Benefits


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