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Hosted PBX or Hosted VoIP Overview

Hosted PBX or hosted VoIP, otherwise known as a Cloud-based phone system, is one where the provider houses the OP PBX in their data center as well as handles the technology required to provide the services to the phone system. The desk sets connect to the internet network at the customer’s site and the call, signaling, and features are handled through an IP PBX server at the provider’s location.

The provider of the hosted PBX charges a monthly fee for the service as opposed to an up-front capital expense with on-premises system. There are both unlimited and metered minute plans to suit all types of companies. A company that knows the amount of minutes spent on the phone in a given month can make effective cost comparisons. Extended features may come with additional costs.

On-premises PBX is also known as an IP PBX phone system. It is similar to a traditional PBX system that resides at a location, such as a computer equipment room or phone closet. The main difference is that IP routing is done with more current technology. The signaling is done with an IP phone to the IP PBX server using a LAN. Calls can go through a traditional phone company as well as voice over internet (VoIP) using SIP trunking. Gateways or telephony cards are used to connect the system to the traditional phone company provider.

The provider can be the one that already provides de service, though a SIP trunk can be configured for use with an internet service telephone provider (ISTP). An Asterisk-based system can be one of the most affordable options for an on-premises PBX due to the flexibility that is offered with open source software.




Low setup cost


No maintenance cost


It’s an Operational Expense (OPEX model)


Risk of fee increase


High setup cost


High maintenance cost, current and future


It’s and Ownership Model (TCO Model)


No risk of fee increase



Provider absorbs all the risk, work, and complexity


Fast growth or reduction


Automatic and non-intrusive software updates


You absorb all the risk, work, and complexity


You plan and execute with your own resources


To update or not to update?


Provider responsible for hardware and software


Frees resources to use in other productive areas


Provider has control over your system


Might not scale to large deployments

You are responsible for hardware and software


Need to budget


You have total control over your system


Difficult to scale to large deployments



Fast, easy, and cheap


Minimum dependency on in-house IT Services


Focused training on use of the system


Slow, complex, and expensive


IT Services is the owner


Multi-level training


Any size business that wants to spend IT dollars elsewhere


Small business or start-up that does not have in-house IT resources


Enterprises with available IT resources that need control of all aspects of their phone systems


Any size business looking for a customized solution

TelOnline provides the best of both worlds, and more. We have the solution that best fits your needs, be itHOSTED or ON-PREMISES or HYBRID. Contact our Consultants on Business and Technology and together we will find the best alternative, with the optimum combination of hardware and software, lowest cost, and top reliability. Contact us at: , T: +1 954.894.6181, F: +1 954.208.0220

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