Why companies are choosing a premise based business
phone system over a Cloud Solution
Everything has changed and Asterisk is the core reason.
Several very good VoIP hardware companies, which have been making SIP based
phones, gateway hardware and other equipment for the open market, are now each making
an IP-PBX appliance. And they are available at very affordable prices.
Over the last two years an on-premise
IP-PBX based on Asterisk, FreePBX and other open source applications
has shown to be a primary first choice for some businesses over
either a traditional proprietary PBX.
These well crafted appliances use
Asterisk on Linux, both extremely reliable open source software that have been
fully designed to take the guess work out of installation, configuration and
management. They really came into their own a few years ago when IT
professionals realized the cost and operational advantages in managing their own
on-premise PBX. To say the least, this has made traditional PBX manufacturers
and some hosted VoIP providers cognizant of how stiff the competition can be. In
fact a few phone system companies were annoyed
so much that they resorted to stop purchasing some SIP phones because that manufacturer
was making an innovative IP-PBX appliance that was creating too much competition.
Certain businesses, not only lower costs with an on-premise VoIP PBX, but can tailor their use to include integration with specific company apps
that increase productivity.
Actually, these VoIP
UC PBX appliances beat the competition drastically in pricing and feature sets
and have advanced to being very easy to install and configure. This change is
affecting the entire telecom
landscape, not just the traditional PBX companies, but hosted VoIP providers
(cloud based business PBX) as well. Up front costs for hardware are now
drastically lower than before. Historically, by year two the cost of a hosted
PBX phone system becomes equal with the on-premise solution for many companies, however now with
new affordable UC appliances and SIP phones it can be just a number of months,
especially for those that use apps and advanced feature sets that come at an
Consider these benefits for a premise based ip-pbx.
- Low costs on hardware. Traditional PBX phone
systems were and still are a major expense, but SIP phones and Asterisk
based IP PBX appliances are extremely low in cost and every bit as good,
probably better for ninety percent of SMBs.
- Systems are complete; tested, easy to install and
configure, and reliable, all without the guess work of a
do-it-yourself system. They offer so many features without license
fees. If you need an extra conference bridge just configure it at no
extra cost. Several makers of these Asterisk based VoIP appliances
offer advanced call center apps, hotel management apps and other
solutions at just a fraction of the cost of their traditional PBX
- Choose your provider at any time. Connect up to
your existing phone lines, add VoIP (SIP Trunks), have a
combination, or go totally VoIP. Your in control and have the
flexibility to choose lower cost, better service providers.
- Support and ease of installation. For Up until just
a year ago or so, installing a PBX phone system was only for telecom
professionals. However, all that has changed and now most tech savvy
individuals can configure an Asterisk or FreePBX system themselves and
if they can't figure something out, the manufacturer is there for
support. This has not made most traditional PBX manufacturers happy,
some have become so annoyed that they don't even want to buy certain SIP
phones, but that's not going to change the direction of the
- In-house management. Yes, these systems are
intuitive and so well designed that someone in-house can take care
of any changes. They can be customized for your company.
- Any additional hardware costs should be recouped in just
months. Recently several quality manufacturers of IP phones
moved into the IP-PBX hardware market. They each build an affordable
quality appliance that uses a version of Asterisk sitting on Linux as
its operational software. The savings have been passed to the consumer
lowering prices dramatically which has made the difference in initial
costs between hosted VoIP and an in-house ip-pbx phone system easily
- Signaling over your own network (LAN) instead of over the
Internet. When you transfer a call from one extension to
another extension in the office the phone switch in the closet on
premise makes that happen. All the signaling occurs locally just
feet away instead of miles. Calls between extensions don't have to
go through a cloud hosted PBX provider, they're all on your network.
Related Articles of Interest:
Best On-Premise PBX Solutions Top 3 VoIP Desk Phones