What is On Premises PBX?

With a premise voice solution, the hardware is installed and runs on-site at your office or data center. You purchase and own the phone system hardware, networking, server equipment, and more, and your IT staff take care of all the updates and maintenance regarding the system.

The calls are routed through traditional phone lines (ISDN, PSTN, GSM) as well as SIP trunking.

There are several compelling reasons to adopt an on-premise PBX solution.

If you’re weighing the benefits of a PBX that is kept and maintained on your premise instead of hosted by your providers, here are the arguments in favor of that.


  • iconLower cost in the long run
  • iconCut costs with SIP trunking
  • iconHosting offers greater control over network and server systems
  • iconIP PBX ensures call availability, even offline
  • iconCustomize security to your needs
  • iconOpt for On-premise PBX for custom security solutions

What are the pros and cons of on-premises versus hosted PBX?

For larger organizations or those making a lot of phone calls, on-premises PBX offers more flexibility for users, and VoIP can save organizations of calling costs. However, organizations that cannot afford higher installation costs or do not have a dedicated IT professional on site might be better off using a hosted PBX system instead.

Purchasing and installing an on-premises PBX system involves buying hardware and software, as well as dedicating a space on site to setup a data hardware room. Organizations then have to train their IT departments on how to maintain the PBX system.

On the other hand, hosted PBX systems take the pressure off of organizations to front these initial costs, but organizations have to pay a monthly fee to providers, which makes hosted systems more expensive in the long run.

Pros of on-premises PBX

  • Gives organizations the ability to control users
  • Ability to SIP trunk to get lower-cost calls
  • On-premise IP-PBX provider will qualify network, install and program system, and train staff
  • Reduces expenses over time, after expenses are covered
  • Can use current phone carrier
  • Integrates with VoIP to save on calling costs
  • Supports organizational scalability, as it’s easy to add and remove users with no additional cost

Cons of on-premises PBX

  • Higher initial set up and installation cost
  • Need dedicated and trained IT personnel to attend to technical issues
  • Organization is responsible for maintenance cost
  • Organization must maintain premise at which to host PBX system

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