Lifespan of Traditional PBX vs. Hosted PBX

Today, business organizations are stepping into the world of communication not only with the objective of setting up cost-effective solutions but also with the complete future insight of any investment being planned. One important factor to consider while opting for a communication solution is to consider the time for which the service can last. This is crucial in analyzing the actual Return on Investment when a company is projecting long term objectives. Whether to go for Hosted PBX systems or IP PBX is the question that requires analysis of the lifespan.

Talking about the customary option, the life of an equipment on-premise is around 7 to 10 years. Growth within this time span is to be equally considered before you choose between a fixed or hosted PBX solution for communication. It is essential to find out the following:
• Expected increase in the number of employees over 7-10 years
• Expected profitability over the same time span
• The investment in terms of capital expenses
• Operational expense budget over 10 years
• Budget for unavoidable upgrades and enhancements

What are the benefits of using Hosted PBX VOIP systems over the premise-based systems? This is another important factor to consider while selecting a communication system. Undoubtedly, a hosted communication solution serves business organizations better. Some of the benefits associated with the use of these systems include:

Scalability: When you set up an on-premise system, you will have to purchase a fixed size equipment whether you require it or not. In the case of Hosted PBX systems, the requirements can be exactly met. The small business organizations can start off with as many extensions and other services as they require and later on, the requirements can be extended.

Reduced Capital and Operational Expenses: With a hosted telecommunication solution, there are no capital and operational expenses to be invested. This is so because the entire system equipment is hosted and nothing is on premise. This saves the capital and operational expenses that are otherwise incurred on the setup of this massive system at office location.

Portability: There are various business enterprises that plan frequent office switches as the requirements increase. This is quite easy when the system is hosted in nature. The shift from one office to another is almost impossible with the giant on-premise system. Not only its transportation but also the resettling of PBX equipment and wired configuration are services that are hassled.

Now, the most important factor to consider is the expense that would be incurred with hosted PBX services over a span of 10 years together with the expansion of requirements. For premise-based systems, the requirement and expenses should be calculated. Both should be compared and the business success factor should be kept in mind before making the final choice. There are pros and cons of both and thus, the choice should be efficiently made since the purchase is one-time decision.

Most of the small business organizations have been implementing the use of these systems in their enterprise. The major reasons are the unsure level of their business start and the progress rate, the low initial investment required and the benefits like mobility, portability and scalability. The best part with a hosted solution is that enterprises can utilize their entire existing business phone infrastructure. The use of Hosted PBX allows the use of PSTN phones, VOIP phones; PC based soft phones or mobile dialers. So, minimal investment can offer promising returns. In case a business owner is confused about the choice, the hosted solution can always be chosen and the enterprise can later switch to premise based system if the need so arises.