Business VoIP – Replacing your Hosted VoIP Solution with an IP PBX: Why do it?

Replacing your Hosted VoIP Solution with an IP PBX: Why do it?

A hosted VoIP solution may deliver the same features and functions as an in-house IP PBX, but each solution caters to a vastly different audience. One is not better than the other, and the decision on which one to use will be based on a very different set of needs.

The hosted VoIP solution is typically best-suited for smaller businesses that do not have the in-house expertise to install or maintain on-premises IP PBX equipment. Many smaller businesses start out with hosted VoIP as an easy path to low-cost telephony and access to sophisticated features, giving them the remarkable ability to operate to a degree, on a level playing field with much larger companies. The hosted VoIP option is remarkably easy to get started with, requiring no on-premises equipment, and usually getting provisioned within a day or two.

IP BBX - The natural Progression from a Hosted VoIP Platform

But as a small business grows and becomes more established, the managers may come to a point where they are adding lines more frequently, trying to facilitate telecommuting and accommodate "road warriors", and perhaps even adding branch offices. There may come a point where that expansion means that it's time to reconsider hosted VoIP and install an IP PBX in-house.

There are several factors to consider when moving from a hosted model to an on-premises IP PBX, and the first is size of business, followed by anticipated growth. Depending on your hosted VoIP provider's rate structure, there will be a certain break-even point where it will be more advantageous to install your own IP PBX. This calls for a detailed cost analysis to compare the options. For smaller businesses with 10 employees, for example, the hosted option is almost always going to be the most advantageous, but after that, it becomes a grey area worthy of exploring. Compare the cost of the hosted VoIP against the expected ongoing cost of maintenance and upkeep and depreciation of the capital expenses that will be required. However, that must be balanced against the lower costs for long distance that you will enjoy as a result of running your own IP PBX.

Another factor involved in the decision to move from hosted VoIP to on-premises IP PBX is the addition of branch offices as well as expansion of the main office. Branch offices may be equipped with their own appropriately-sized IP PBX as needed to facilitate connectivity with the main office and further cut telephony expenses. The existence of on-premises IP PBX also lends itself nicely to convergence of data and voice, which allows the enterprise to run only a single network for both types of data as opposed to two separate networks. Lastly, the on-premises IP PBX allows more readily for integration with other software and systems, which may be necessary for operations such as call centers. In this case, it is often necessary to integrate the IP telephony system with call center software, CRM systems, screen pops and various databases to allow call center agents to better serve clients.

When moving towards an on-premises IP PBX solution, consider the longevity of the integrator as well as level of experience and price. A larger integrator with adequate support staff will better serve your needs and be able to better respond to your service calls. Before acquiring the services of an integrator to install an IP PBX on your site, consider the level of ongoing support being offered, level of responsiveness, and the existence of a service level agreement.

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