As a small business, do you select a hosted or traditional phone system? With limited resources, it’s important you have the information you need to make a strategic decision for your company.
This article provides a simple side-by-side cost comparison of both hosted PBX phones and traditional phone systems, as well as, a comparison of the benefits and limitations for each, so your search can be easy.
Phone Systems
Traditional on-site phone systems
A traditional phone system is also referred to as an on-premise 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. Companies with multiple locations also need a “brain box” at each location. If the company grows after the initial purchase, a Technician has to manually upgrade the hardware to add new users.
Hosted PBX phones
Hosted PBX phones are built over a group of technologies that supports the delivery of voice communications and data over networks. A hosted PBX phone is managed in the cloud, as opposed to the traditional, on-site system, which is managed on a physical computer box located on your premises. With a hosted PBX, your provider manages the key system in the cloud, and provides software and feature upgrades automatically for you.
Hosted PBX vs. Traditional PBX: Benefits and Limitations
Now that you know how the hosted and traditional PBX systems are defined, take a look at their benefits and limitations.
Cost Comparison
Cost can be measured in a number of ways. The most obvious way is with monetary expenses. We add gain and loss of customers, down time of business and amount of management required by staff to this category.
How GTB can help
In business for over twenty years, GTB is one of Maryland’s first VoIP providers. All voice products are run on GTB’s private network, so that customers can receive HD voice and a variety of rich features. GTB can service both traditional PBX and hosted phone systems. In both cases, because we are 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 a direct connection from our network to your office (not over the public Internet). In case of power outages, our hosted PBX phone service can also support business continuity, so you will never lose a call with your customers! Learn more about our Business Phone Systems.
Click here or call us at (877) CALL-GTB for your free assessment to see what system is best for you
Also read, The Ultimate Guide to Selecting a Business Phone System, Choosing a Hosted PBX or Legacy Phone System, Difference between Managed and Unmanaged Hosted PBX , Why Go VoIP?, and HD Voice - The new standard of audio quality.