hosted pbx

Understanding the Differences Between SIP Trunking vs. Hosted PBX

There were 41.6 million business Voice over Internet Protocol (VoIP) subscriptions in 2018.

The business VoIP demand has been growing steadily in recent years and is not showing any signs of slowing down.

As the internet matures, more firms see the benefits of using VoIP services over traditional phone lines.

Be it SIP trunking or hosted PBX, companies want the versatility of streaming other data such a video on top of merely making voice calls.

But how do you choose between the two? Read on to find out what these VoIP services are and how they differ from each other.

Sip Trunking

This is a phone service that combines VoIP protocol and other streaming media services. These services are based on the session initiated protocol (SIP).

With SIP trunking you replace traditional phone lines by using VoIP to transmit your voice as data on the internet.

The protocol then goes a step further and combines that data with other streaming services like video conferencing and screen sharing.

SIP trunking is virtually installed in your organization’s internet connection. The result is that you do not need a physical phone line.

Hosted PBX

A hosted private branch exchange (PBX) VoIP phone system is one that has the servers located at a third party provider’s location.

Due to its remote location, you do not need to buy or operate a physical PBX box. It all operates in the cloud.

When you make or receive a call, it first goes through your service provider’s servers before connecting with your phone.

Differences Between the Two

For any organization, it can be easy to get confused about which of the two services to choose from.

Since they offer similar services it all boils down to what kind of company is looking to use them. Here are the main ways in which they differ.

1. Cost

How much a company will pay for infrastructure is a critical matter. When it comes to making a decision on what phone set up to choose you can expect to see cost help shape the discussion.

Hosted PBX utility is cost friendly as the provider hosts and maintains the actual servers. All your organization will need to do is buy routers, IP phones, and a business-grade internet subscription.

In stark contrast, SIP trunking will cost a little more. You will need to buy servers that will reside on-site, hire an IT team to maintain them, and pay for the trunking.

In addition to this, you will also need to bring in a separate internet connection for the trunking service.

At the end of the day, whether the cost of setting up a company’s VoIP service will be justified or not depends on the nature of its operations.

2. Scalability

Every business requires a scalable infrastructure. Any business owner worth their salt must be able to project growth and see the future needs of their business.

The SIP trunking phone system offers the ability to scale, but it doesn’t come without its limitations.

Each PBX can typically serve several hundred telephones. Therefore, when you need to expand the organization, you have to invest some more into the system.

For example, you will need to buy on-site servers depending on the new number of phones you want to add to the system. For every additional phone, you add, you will also need to configure the necessary dial plans.

A Remote PBX utility, however, offers slightly different scaling capability. To begin with, it offers unlimited capacity to the users. You can upgrade or downgrade it at will without needing deep expertise to do it.

The reason why scaling a remote PBX system is friendly, even to non-IT professionals, is because all you need is a web browser to do it.

To add a new phone to the system you just need to automatically register it with a VoIP service (known as IP phone booting). Enter the necessary information and you’re good to go.

3. Maintenance

The maintenance costs of any infrastructure directly contribute to what the firm will finally choose to invest in.

With a SIP trunking service, you will need to hire IT staff to maintain the system. Since the servers are located on your premises you will be in charge of their maintenance.

You can choose to go with internal or external maintenance staff depending on what you prefer.

If any software updates to your PBX become available, your team will have to handle the task. Your network manager will need to reinstall the software and reset the servers for the updates to take effect.

A Remote PBX service, by its very definition, means that you do not have to deal with maintaining any physical infrastructure.

Your provider takes care of the software and server maintenance. Their dedicated staff will cover any upgrades or outages that crop up.

All you need to do is take care of internal tasks like adding users, changing features and such tasks to suit your needs.

4. Flexibility in Access

What can best work for an organization depends on its specific needs.
For your SIP trunking service to work, all the phones will need to be on the same network.

As a result, users of this system can only access the service if they are in close physical proximity.

If your organization happens to have a branch then it will need its own PBX before the service can start operating.

On the other hand, remote PBX utilities are hosted in the cloud. Therefore, anyone in the firm can use the service from different locations and on different devices. Examples include while at home or even when traveling.

Get Connected

VoIP phone services like hosted PBX and SIP trunking have provided versatility to businesses in their communications.

From just making basic voice calls, firms can now stream videos and screen share among other things. That kind of adaptability will only attract more business towards these services. values your business’ communication flexibility. Contact us today for more information about how we can help you optimize your communication affordably.

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