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Hosted PBX vs SIP Trunking: What’s Right for You?

Hosted PBX and SIP Trunking both allow you to use the latest communication technology in your business, but there are important differences between them. Make sure you have all the information you need to make the right choice for your business by reading our guide on Hosted PBX vs SIP Trunking and what’s right for you?

Overview of Hosted PBX

A hosted PBX is a telephone system that you subscribe to as a service, rather than buying and setting up yourself. The advantage of a hosted system is that you don’t have to worry about setting it up or maintaining it. 

This can be especially attractive if your company already uses cloud services like Office 365 or G Suite and you want to stick with these services. As part of these services, most companies receive 24/7 support from Google or Microsoft. 

If you use a hosted PBX instead, then you would also get 24/7 support from your provider. Most providers offer an option to add phone numbers in different locations around the world (known as geo-diverse routing). 

If one location goes down, calls will automatically be routed through another location. Hosted systems are usually more expensive than traditional on-premises systems because they require higher levels of redundancy and reliability—but they are also much easier to manage.

When hosted PBX Makes Sense?

Many businesses started off as small operations, and as their business grows, they look to grow their phone system. In some cases, though, it doesn’t make sense to add additional hardware when a hosted PBX can act as a centralized system that does everything you need at a fraction of the cost. 

For example, imagine you have three remote sites and 12 people calling in. If you wanted to buy traditional hardware, you’d spend $1,500 on equipment alone—and that doesn’t include installation or maintenance costs. 

With a hosted PBX solution, however, your monthly fee is $100 per month with no upfront costs or long-term contracts. When it comes time to upgrade your phones or add new lines—or if your company outgrows its current setup—you can do so without any hassle or extra costs involved.

Advantages of hosting your own PBX

#1 – Savings is king, and with hosted PBX you can make it happen. The cost of purchasing a phone system and installing it in your own office will be many times more than if you chose to use a hosted service.

#2 – It’s common to underestimate how much technology costs will play in your budget when building a business. When you purchase an on-premise phone system, all of these extra costs are included upfront. With hosted PBX you only pay for what you need, when you need it. 

That means that as your company grows or shrinks so does your phone bill. This flexibility allows you to spend money where it matters most—on growing your business instead of managing a complex telephone system. 

#3 – Upgrade when you want, not when you have to. If there comes a time when your existing phone system just isn’t cutting it anymore, you don’t have to go through months of planning and testing before upgrading to a new one. 

Simply choose what features you want to be added or removed from your current plan and let us know! We can then seamlessly upgrade your account without any downtime. 

What is SIP Trunking?

If you’re looking to use a hosted business phone service, it’s a good idea to familiarize yourself with SIP trunking. A lot of people can have trouble keeping up with all of today’s jargon and technical lingo, but understanding how to create an effective business phone solution is an essential part of setting up your new office. 

So what exactly is it? Simply put, SIP trunking is a way of connecting your voice services to your existing telephone lines so that they’re compatible with IP-based systems. It also allows you to send and receive calls from any location using only one number. 

When comparing Hosted PBX vs SIP trunking, keep in mind that there are pros and cons associated with each option; if you choose one over another, it could end up being either beneficial or detrimental to your company in the long run.

Difference Between Hosted PBX & SIP Trunking?

While PBX and SIP trunking both refer to phone systems, they differ in implementation. PBX refers to any business phone system that you host onsite at your company, while SIP trunking is a hosted service that uses an Internet connection and a Voice over IP (VoIP) line. 

Both PBX and SIP trunking enable virtual private networks (VPNs), which allow people who are separated by distance to communicate easily. It’s also important to note that there’s no one-size-fits-all solution; depending on your needs, either option may be better suited for your business.

Choosing the right solution for your business (Hosted PBX or SIP Trunking)

The best way to determine whether or not you should go with a hosted PBX or SIP trunking is to weigh your specific needs against what each offers. With a hosted PBX, all of your equipment will remain onsite—meaning that if something goes wrong with it, it will require immediate attention from IT professionals.  However, using a hosted PBX does mean that you won’t have to worry about upgrades and maintenance since those services are handled by your hosting provider. On the other hand, if you opt for SIP trunking, most providers offer remote monitoring and management (RMM) capabilities so that they can ensure everything is running smoothly

Eleena Wills
Hi, I’m Eleena Wills. Being a writer and blogger, I strive to provide informative and valuable articles to people. With quality, constructive, and well-researched articles, one can make informed choices. I cover a wide range of topics, from home improvement to hair styling and automotive.
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