The Costs of Hosted PBX Systems 

Person studying PBX pricing

If you are considering adding hosted PBX to your business, this article is for you. We will be focusing on PBX pricing and the differences between hosted PBX solutions and on-premise PBX solutions. If you are a current business owner with a traditional PBX solution, we are willing to bet that you have an on-premise PBX solution. In that case, please compare your on-premise PBX pricing and compare it to the hosted PBX information below.  

What is a PBX System? 

PBX stands for private branch exchange. This is a type of phone system for businesses that make both external and internal phone calls. Along with call capabilities, a host of other features are also key to a good PBX phone system. Call forwarding, call park, auto attendants, conferencing and more are all features that make PBX ideal for business use.  

There are two main types of PBX, hosted and on-premise. Hosted PBX is service based on the internet. On-premise is when all necessary equipment is housed in the business building, usually in an equipment closet.  

Hosted PBX 

A hosted PBX system is managed and housed by the provider that delivers phone service to you. They maintain and operate the network that your phones connect to. This means the server is located off-site and is not your responsibility. Additionally, hosted PBX has built in security features that ensures your data is encrypted.  

Due to the online nature of hosted PBX, it is set up to offer you much more in the way of features and functions than a non-internet-based PBX. Not only does it come preloaded with more features than an on-premise PBX, but it is also easier to add features to the solution.  

On-premise PBX 

On-premise PBX reminds us of the way phones used to operate. As mentioned earlier, everything needed to operate a PBX phone system will be housed on-site. The business uses a traditional phone company for phone service and will need to use a SIP trunk in order to upgrade to an internet-based solution.  

PBX Pricing: The Costs of PBX 

In order to decide which form of PBX is best for you and your company, you may want to consider the costs of PBX. The costs of hosted PBX and on-premise PBX can vary wildly. This is due to the nature of how they operate.  

Hosted PBX 

For a hosted PBX solution, you will need to buy the devices you will use to access your phone service. For most companies, this would be IP phones, however, that is not always the case. With hosted PBX, the business owner pays a monthly fee. Depending on the provider, extra features may be an added cost or upgrade.  

Included with hosted PBX are system maintenance, upgrades, and new features. The ability to add extra lines is an easy transition that can be done very quickly. 

On-Premise PBX 

On-premise PBX is a little more expensive in the beginning. You will need to buy all the equipment that will be housed at your business. Another fee with this is the cost of a technician to set up the solution. Any upgrades or maintenance to the solution are the responsibility of the on-premise PBX owner. Adding users can be costly also. However, once the initial set-up costs are completed, an on-premise PBX could have a low monthly cost.  

Interested in Learning More About PBX Pricing?  

If you are interested in learning more about hosted PBX pricing and the features included, the specialists at Magic Apple Technology are here to help. We are experts in hosted PBX and can help you choose the right phone solution for your business. Contact us today to learn more about our hosted PBX pricing and features.  

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