Showing 1-20 of 245 products
RingCentral Office is a cloud-based business phone solution that offers business communication tools for video, voice, fax and text. Core features of the solution include conferencing, auto-recording and unlimited long-distance an... Read more
Recent recommendations: 29 recommendations
GoToConnect (formerly Jive) delivers a cloud-based unified communication solution to organizations of all sizes across the U.S. GoToConnect includes integrated products for business VoIP, video conferencing and contact center whic... Read more
Recent recommendations: 27 recommendations
Nextiva is a platform that brings communications together with business applications, intelligence, and automation. This helps businesses communicate and build deeper connections with their customers. The platform brings all ... Read more
Recent recommendations: 26 recommendations
Ooma Office is a cloud-based VoIP solution that caters to small-medium sized businesses across various industry verticals that helps them to manage their business operations. For businesses of all sizes, Ooma provides advanced voi... Read more
Recent recommendations: 22 recommendations
Vonage Business Solutions is a cloud-based communications solution suitable for small and midsize companies. The solution offers a business phone system that enables businesses to connect their VoIP phone system to internet-enable... Read more
Recent recommendations: 21 recommendations
Virtual Office is a collection of comprehensive web-based business VoIP solutions from offered by 8x8. Enterprise grade phone service, virtual meetings, mobile applications, virtual contact centers and more are available to help c... Read more
Recent recommendations: 15 recommendations
BroadVoice b-Hive helps call and collaborate from anywhere with a single cloud communication solution that unifies business phones, video conferencing, texting and collaboration under a single phone number. Untether your team fro... Read more
Recent recommendations: 15 recommendations
Business Plus is a cloud-based VoiP solution created by PanTerra, which allows users to take or make calls from their office phone number, communicate with their team, and have file access, all from any device with an internet con... Read more
Recent recommendations: 10 recommendations
net2phone’s cloud PBX VoIP phone solution enables businesses to communicate in a variety of methods, whether voice, texting, messaging or web chat, over an array of devices, in the office and on the go. The net2phone solution feat... Read more
Recent recommendations: 9 recommendations
For quickly growing businesses looking to efficiently scale their support teams, Dialpad provides a cloud-based call center with access to real-time customer insights. Dialpad allows users to onboard quickly and focus on deliverin... Read more
Recent recommendations: 3 recommendations
Twilio's Voice API is a fully programmable VoIP system that helps companies make, manage and route calls to a browser, app, phone and more. Key features include call monitoring, call transcripts, call routing, PBX, auto dialer / p... Read more
Recent recommendations: 1 recommendations
CallTrackingMetrics is a cloud-based call tracking and contact center solution for businesses and agencies that helps with tracking campaigns, reaching new audiences through integrated text marketing and online forms and using int... Read more
Recent recommendations: 1 recommendations
Here's what we'll cover in this guide:
- What are Virtual, Hosted and Cloud PBXs?
- Choosing Between an On-Site or a Hosted (or Cloud, or Virtual) PBX
- Final Consideration
What are Virtual, Hosted and Cloud PBXs?
A PBX, or Private Branch Exchange, is at the heart of every business phone system. It is the central component that integrates all internal phone extensions with all external phone lines, and allows calls to be set up and transferred between them. Originally, PBXs were big, physical machines. First, they were switchboards with human operators; later, the switchboards became automated. But since the late 1990s, they have been available in a new form: as virtual or hosted machines.
It’s important to point out that the terms "virtual," "hosted" and "cloud" have all been used very loosely over the years. In the late 1990s, a company by the name of "Virtual PBX" was the first to offer a service similar to what most now call a hosted PBX. Theirs was a much more limited service: it could only forward incoming calls. (Businesses would pay for a single business number, and when their customers called it, Virtual PBX would route those incoming calls to their employees’ on-site or off-site phones.)
In the early 2000s, as VoIP networks expanded and their connectivity to landlines improved, most of the virtual PBX call-forwarding companies added outbound calling to their plans. These new plans took on a new description: hosted PBX services. Then, when cloud became the buzzword for describing hosted services, this term, too, joined the mix.
Today, we see the three terms "virtual," "hosted" and "cloud" used interchangeably. Buyers should not assume that the terms imply any specific set of features. All services need to be compared in detail to understand what they offer.
Choosing Between an On-Site or a Hosted (or Cloud, or Virtual) PBX
Choosing a new phone system is one of the most daunting tasks a business can face. There are many technologies on the market that are competing with, overlapping and blurring the distinctions between one another. As we just explained, cloud, virtual and hosted are all used to describe a PBX that’s hosted off-site by a third party. So how do on-site PBXs compare to those hosted in the cloud?
|Off-site PBX||On-site PBX|
|Cost||A hosted PBX will almost always have a lower initial cost. But since it is billed as a service, it will have a recurring monthly charge. Businesses on the fence should calculate the total cost of ownership, and consider that hosting prices could go up over time.||There is a wide range of options for on-site PBXs. Some cost thousands of dollars; some are free. Included features and its form of network integration are the main cost factors. Companies that are already hosting their own computer servers might find this choice more feasible.|
|Maintenance||Hosted PBX software is kept up to date by the hosting company. Configuration changes can often be made remotely, though some leave this responsibility to the company subscriber. This works well for small companies without dedicated IT staff.||An on-site PBX could require a knowledgeable engineer or IT manager to add, remove and change phone extensions and perform periodic maintenance and other updates.|
|Flexibility||It’s difficult to generalize about the flexibility of hosted PBXs because of the wide range of companies and offerings. The important thing here is that buyers ensure their hosted PBX comes with all of the features they expect to need. Though hosted PBX service providers do generally stay current as new technology becomes available, there is no guarantee that providers will add new features that subscribers may want in the future.||There are few limitations with on-site PBXs. They can be programmed and reconfigured at will, as long as there’s an employee available who understands the system. On-site PBXs are more flexible with regards to WANs (Wide Area Networks), so integrating a newly opened branch office into the same phone network might be easier than with a hosted system.|
|Security||With a hosted PBX, the hosting company is responsible for keeping the system secure. This takes some—but not all—of the security burden off subscribers. Businesses still need to have their data connections secured. Hosting providers can usually make suggestions about how to do that and how to best configure firewalls so as not to interfere with voice traffic.||Modern PBXs are almost always connected to the Internet, and they face some of the same threats as computers. An unsecured PBX can become victim to denial of service and theft of services attacks. A properly configured firewall can prevent these attacks, though configuring firewalls so as not to interfere with voice calls can be challenging.|
|Analog or VoIP||Though hosted PBXs can connect to traditional analog office phones, they are far more at home interfacing with VoIP phones. In most cases, businesses using a hosted PBX system are already using, or are in the process of switching to, an entirely VoIP system.||If a company has a large investment in a traditional PBX system and uses many traditional (analog) phones, then the argument to go with an on-site virtual PBX becomes stronger. It’s easier to integrate analog phones with a PBX if it’s local instead of hosted remotely.|
Apart from the specific factors mentioned above, there is one other consideration that can help companies decide between a hosted and an on-site phone system. While difficult to quantify, this concept is one of the most influential in modern business strategy. It is known as the strategy of “core competencies,” and it all boils down to focus.
The strategy of core competencies states that businesses should focus on what they do well and what they do better than their competitors—and keep their focus there. If some element of their operations that is not directly related to these core competencies can be outsourced, it often makes more sense commercially to do so.
Many businesses switch to hosted phone systems for the simple reason that phone systems are not one of their core competencies. Placing management of the phone system in the hands of companies who do specialize in it shifts that burden there—and frees the other companies to focus on what they do best.
If telephone communication is central to what a business does (for example, a call center), it may be preferable to keep the phone system as close to the office as possible. But for the majority of companies—those that consider phone service important, but perhaps not central to their business model—hosting the system off-site is more often preferable.