There are 41.6 million businesses subscribed to a VOIP (Voice Over Internet Protocol) service. This number is expected to jump to 204.8 billion this year.
Also known as an IP PBX, these services allow for the easy handling and switching of all kinds of calls and information exchanges.
Two of the most common VOIP options are SIP trunking and hosted IP PBX. It’s important to know the differences between the two so you can choose and provide the best one.
Read our guide to find out how to compare PBX vs SIP options and how to decide which one is the best for your business.
What Is SIP Trunking?
80% of businesses say using SIP is important. To understand why this is, you have to know what the service is and how it works before you can start answering your customers’ questions.
SIP stands for Session Initiation Protocol. It’s used for videoconferencing, gaming, call forwarding, and other important processes.
A SIP is managed by an IP network that provides services such as personal mobility, time-of-day routing, call forwarding, redirects, and user authentication and registration.
SIP trunking has several advantages over traditional PTSN networks that make it an increasingly popular option. It’s affordable, provides a higher return on investment, improves call quality, and is easy to scale as a business grows.
What Is Hosted IP PBX?
Some businesses may want to experience the benefits of a VOIP service without managing it themselves. That’s where hosted IP PBX services come in.
PBX stands for private branch exchange. It allows you to switch between online calls and calls from a hard line shared by all the company’s users.
A hosted PBX company handles call routing and switching at their location using their equipment and software. This takes the burden off you and lets you focus on using the system to communicate with and obtain customers.
Which One Do I Need?
Your customers are likely to ask which type they’ll need.
Both SIP trunking and hosted PBX services allow for voice calls and the exchange of other forms of data like videos. They’re also both a major improvement over traditional PTSN networks.
There are several differences to consider before choosing one.
One important factor when considering hosted PBX vs. SIP trunking is cost. This includes the initial costs and the overall amount you’ll pay during the amount of time you use the service.
Hosted PBX services buy and maintain servers. All you have to worry about buying are routers, IP-compatible phones, and an internet subscription.
SIP trunking costs more as it requires your business to buy and maintain your servers. Since there’s no separate company to maintain the system for you, you’ll also have to hire an IT team and handle the time and money required for maintenance and updates.
SIP trunking requires processing more voice calls, and your gateways may not be able to handle the high load without a quality internet connection. The best way to avoid this is to have a separate internet line for your SIP services.
Hosted PBX services can handle a higher number of calls. They use a cloud system that won’t be overwhelmed by large amounts of data.
Scalability refers to how easy it is to expand as your business grows. This is another important difference between PBX vs. SIP trunking services.
Hosted PBX allows for easy scaling with a process known as IP phone booting. Just register a new phone line you want to add by entering the new information.
Scaling a SIP trunking system can be more difficult. You’ll likely need to install and pay for a new line yourself if your business grows.
A common reason for businesses to install IP PBX services is to provide their workers and customers with remote access. If workers can get into the system from wherever they are, they can be more productive. The type of service determines just how accessible the system is.
SIP trunking provides a limited range. All the phones have to be connected to the same network, and employees can only access them if they’re nearby.
Hosted PBX services work in the cloud, allowing remote workers and employees at different branches to access the system from anywhere.
The amount of remote employees and different branches your company uses helps in the decision between hosted PBX and SIP trunking. A large global business may benefit from the accessibility of a hosted PBX service.
Reliable, long-lasting connections are critical to the success of a business. Experts recommend all salespeople make at least 60 calls every day and spend at least 3 hours with each client.
SIP trunking connections, especially if they’re wireless, are prone to interruptions and issues. This can be a major problem if an employee, for example, gets disconnected in the middle of an important sales call.
Hosted PBX systems aren’t immune to lost connections or technical issues, but any problems they have are easier to fix. The hosting company can fix any problems for you, allowing you to get back to work quickly.
Choosing the right VOIP service is an important part of running a business effectively. It depends on several factors such as how much the service will cost and how easy it’ll be to access, scale, and maintain.
To provide more information to your customers, learn how to compare Hosted PBX vs. SIP trunking options to ensure they make the best decision for their needs.
Where Can I Find the Best Service?
Knowing the difference between a hosted IP PBX and SIP trunking service helps you choose between the two.
Several factors should influence your decision, such as cost, reliability, and scalability. You should also consider the size and purpose of your business and which system will best be able to help you serve your current and future clients.
There are over 1,519 different VOIP providers to choose from. Finding the best one to help you is a critical decision. Becoming one is a great financial choice, allowing you to provide connections to others.