Everything seems to have their own cloud nowadays. Cloud-powered backup and disaster recovery and managed services are just some examples. Another cloud-based application many business owners need to look out for is Hosted PBX. It is a cloud-based service whereby the software and hardware (excluding headsets) are hosted on your vendor’s network, where on-site and mobile business phones are connected to the vendor via internet protocol (IP).
While it all sounds good on paper, small businesses are unable to make significant technology investments on a whim. Before putting money on the line, business owners must thoroughly research and understand their investment, and IT is no exception. Here are some questions that can help you determine whether Hosted PBX is right for you.
Are you worried about startup costs?
Hosted PBX offers considerably lower startup costs because you won't have to purchase the components and equipment that an on-premises system would require. While vendor prices might vary due to implementation and licensing, most companies find that Hosted PBX is 70% cheaper to implement than on-premises PBX.
Will you be using public internet connectivity?
There are serious risks associated with routing calls through public Internet connectivity (aka 'Over-the-top' connections). Phone calls that travel from your Internet connection to your vendor's Internet connection aren’t guaranteed the Quality of Service (QoS). This might result in declining call quality during peak hours; you risk having problems troubleshooting and even security risks without the guidance of an experienced provider.
Are you a frequent long-distance caller?
For startups and companies that make numerous international calls, call rate savings can reach up to 90%. While some traditional phone vendors offer great long-distance calling deals, their rates are still much higher than the flat-rate fees that Hosted PBX offers.
How many employees do you have?
After comparing the per-head and maintenance costs between on-premises and hosted PBX, researchers found out that the latter is more ideal for businesses with fewer than 50 employees. However, this doesn't mean you need to switch to on-premises after hiring staff member #51. Before switching, take into account factors such as in-house talent, talent shortages, and the costs associated with training and licensing network engineers before going on-premises.
What about your phone lines?
Adding a phone line normally involves making some changes to your administrative software and connecting a handset. However, if your business needs to scale up or down quickly and is affected by rapid staffing changes, Hosted PBX is the more convenient and cost-effective option.
How intensive are your setup/customization needs?
While "normal" might be the diplomatic answer, typical business communication scenarios can be unpredictable. Say your organization has intensive call center needs that require call routing requirements for numerous employees, some of whom work remotely; or you might even be working with an obscure CRM system and are looking for a VoIP solution that will seamlessly integrate with it. Unless you have the right talent in place to manage it in house, opt for an experienced third-party vendor.
While the choice between hosted and on-premises PBX may be simple for some companies, it’s not always clear-cut for others. With Founders Technology Group as your IT partner, we’ll help you decide which system is right for your business’s needs, or give you a preview with our Hosted VoIP Business Phone solutions. For any questions, feel free to contact us anytime. We’re more than happy to help.