Hosted PBX vs On-Premise PBX
Should your phone system live in your office or the cloud? Compare costs, features and maintenance.
A PBX (private branch exchange) is the phone system that manages extensions, call routing, voicemail and features. Businesses can run one on equipment in their office or use a hosted PBX delivered from the cloud.
On-premise PBX
The PBX hardware or software runs on a server in your office and connects to the outside world through SIP trunks or traditional lines.
Advantages: full control, works with existing analog phones and can operate during internet outages for internal calls.
Drawbacks: upfront hardware costs, in-house maintenance, upgrades and the need for technical skills.
Hosted PBX
The phone system runs in the provider's data centre. Your phones and apps connect over the internet or a managed link.
Advantages: low upfront cost, monthly pricing, automatic updates, easy multi-site deployment and built-in remote working.
Drawbacks: relies on connectivity, and some legacy devices may not be supported.
Cost comparison
On-premise systems have higher initial costs but lower monthly fees. Hosted systems spread cost over time and avoid hardware refresh cycles. Compare total cost over five years, including maintenance and staff time.
Remote and hybrid work
Hosted PBX makes it easy for staff to use the business number from anywhere through mobile and desktop apps.
Reliability
For hosted systems, use a reliable connection with failover. For on-premise systems, protect against power and hardware failures.
Hybrid options
Some businesses keep an on-premise PBX and add cloud features, or migrate in stages.
The bottom line
Hosted PBX suits most growing and multi-site businesses; on-premise suits organisations with specific control or legacy needs. UbiFi supports both models.
Learn more about Business Landline & Voice from UbiFi, or talk to our team.
Fixed-line business numbers, SIP trunks and hunting lines delivered on fiber — clear voice, multiple channels and simple billing.
