An on premise PBX routinely turns out to be the best choice for many businesses. An on-premise PBX is where the phone system server physically resides inside the establishment's property. Companies looking to replace an older phone system routinely maintain in place the appropriate infrastructure. This includes their existing dial tone usually in the form of a number of business phone lines (PSTN) or a T1/PRI (ISDN) from a local Telco. Furthermore, some established businesses frequently retain a portion of older telephone wiring for phones where the expense to upgrade cabling would be costly. Most often these phones reside in locations such as warehouse space where phone use is low. Companies that fall into this category regularly determine an on premise hybrid PBX is the best solution.
Most VoIP providers offer plans that require a standard monthly
fee for each phone. In the case of a company with 150 phones the
ongoing monthly expense can quickly get excessive. At
$25.00/phone per month, the provider's service would be $3,750.00 for 150 phones
not including the cost for Internet. Alternatively, a company that uses a PRI at
$500.00/mo., which frequently includes twenty phone numbers
(DIDs) with a number of included minutes and Internet, dramatically
On premise PBX phone systems can easily be financed. Using $3,250.00 as a monthly payment could pay off the entire on premise project in roughly two years. Once the financing is paid off monthly business expenses dramatically decrease.
For companies that produce a considerable amount of calls, especially
International, an on premise IP-PBX can use a few SIP trunks to take
advantage of low cost calling. SIP trunks are affordable and easy to
configure on most IP-PBX systems.
With a PRI (Primary Rate Interface) you can dynamically send up to 23 separate communications channels for voice, video or data. Great for medium to large companies. The diagram shows a hybrid IP PBX that connects both IP and digital phones to the dial tone provider through a PRI. All signaling goes from the phone to the PBX, staying inside the premise. When Bob in the warehouse dials an office phone the call is switched inside the companies' network. Calls to and from the PSTN go in and out through the PRI. Each phone can be assigned its own DID (Direct Inward Dialing) phone number. That allows outside calls to go directly to an employee's phone if desired.
A significant advantage for placing the PBX server in your facility is you have absolute control over how features are configured and the network. It allows for more customization including the ability to determine in house the required level of security. The loss of Internet won't necessarily take down making and receiving phone calls. You can keep your phone calls separate from your Internet traffic. One drawback of VoIP calls is that congested Internet traffic has an effect on voice traffic. An on premise PBX incorporates signaling inside your own network and offers crystal clear voice.
Discovering which PBX is the right solution for your company often depends on a number of factors. Here are some of our top PBX choices: Best on-premise PBX Systems