Last month, GTB published an article with a comparison of traditional “on-premise” phones and hosted PBX or VoIP phones.  This month, we focus solely on the pros and cons of the hosted PBX.

Hosted PBX pros and cons     

The beauty of a hosted PBX phone is that it’s managed on the cloud, as opposed to the traditional phone system, which is managed on a physical computer box located on your premises.  With a hosted PBX, your provider manages your system, and provides software and feature upgrades automatically for you.  Some smaller businesses with one location stick with the traditional phone systems if they do not intend on moving, growing or updating their services.  Even though total cost of ownership and entry into the hosted PBX service is lower, with the traditional phone system, you usually have one up front fee, and pay for service upgrades only when you know you need them.

Vs. “on-premise”

A traditional “on-premise” phone system is also referred to as a legacy system.  It runs on a physical box (“brain”) located at the company’s office, and is connected by wires to each individual phone.  These premise-based devices are dependent on the number of users and the number of outside lines required to make outbound calls.  They also require multiple cards depending on the number of users and telephone lines used, and companies with multiple locations need multiple “brain boxes”.  If the company moves, grows or upgrades after the initial purchase, a Technician has to manually upgrade the hardware.

Advantages and disadvantages of hosted PBX

How GTB can help

GTB has been proving telecom voice and data services for over twenty years. All voice products are run on GTB’s private network, so that customers can receive high quality audio and a variety of rich features.  Because GTB is local, we configure your system, and provide in-person installation and training, so you don’t have to. Contrary to many providers, we manage your hosted PBX system with an individual circuit connected to your office (not over the public Internet).  In case of power outages, our hosted PBX service can also support business continuity, so you will never lose a call with your customers!  Learn more about our Business Phone Solutions.

See related articles, 6 Tips to Selecting the Best Phone System for Your Business, Choosing a Hosted PBX or Legacy Phone System, Difference between Managed and Unmanaged Hosted PBX , Why Go VoIP?, and Traditional Phone Systems vs. VoIP: Advantages & Disadvantages.

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