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Nov 13, 2015

In-House PBX Systems vs. Hosted PBX Systems: What You Need to Know

Small business owners and entrepreneurs want to have the best for their business, and this includes the latest technology. If you're trying to decide what sort of PBX system to use, an in-house or a hosted PBX system, there are several things that you need to know so that you choose the system that is right for you.

PBX System

PBX stands for Private Branch Exchange, and it is a private network where the users share a designated number of outside lines to make and receive calls for the business. The PBX system connects the telephone lines within the company to each other as well as to the outside world. Other communication devices, such as fax machines and modems, are a part of the PBX. This is a cost-effective way of setting up communication for a business as there are shared lines.

In-House PBX Systems

An in-house PBX system is somewhat complex because everything resides on your business premises. You can house the equipment in a computer room or a closet and you will own everything. You will have your own server on premises and may need to buy the proper number of interface cards for the system. Also, someone at your company will be responsible for operating and maintaining the equipment.

Hosted PBX System

A hosted PBX system is operated and maintained off-premises. The only equipment that you deal with are the telephones. PBX services are provided to the company at a monthly rate and can easily be expanded as the company grows. Hosted PBX systems also generally have options for extra features, such as conferencing, general delivery mailbox, and call recording.

The Choice

Which type of system you choose depends on several factors, as well as personal preference. If your company is spread among several locations, or if you have remote workers, a hosted PBX system may work best for you. However, if you are operating a large call center with hundreds of lines in one location, it may be worth it to look at the in-house PBX systems if you don't mind the cost outlay and maintenance. Because you are not having to purchase a server and other equipment, the set up of hosted PBX system could cost up to 70% less than implementing an in-house PBX system.

When it is time to make the choice on a PBX system for your business, consider the information above here as well as your personal preference to having equipment in-house or not. Contact us if you have any questions about PBX technology or if you are interested in learning about what our PBX solutions can do for your company.

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