Office: (763) 201-8000
Toll Free: (800) 814-2575

Start to Understand Your Technology Solutions

shutterstock_258855056Every growing enterprise faces choices about the best telephony solution to meet its needs. Session Initiation Protocol (SIP) trunking or a hosted private branch exchange (PBX) are both viable solutions, but a business must determine which is more suited to its particular requirements.

Exploring the Similarities and Differences Between SIP Trunking and Hosted PBX

At first glance, SIP trunking and hosted PBX seem very similar. Both are IP-based systems and offer the same basic services such as:
• streaming audio and video;
• VoIP telephone connections to include local, long distance, and toll-free lines;
• support of both mobile and fixed phone systems; and
• support of data transmission for email, fax, text messages, and Internet access.

However, one of the primary differences between the two is that a SIP trunking system requires fixed assets and support, whereas hosted PBX does not.

Hosted PBX is generally a service provided by a vendor that requires neither an investment in equipment nor staff to oversee the system. This is a lower cost solution, but it is completely dependent on a third party for the operation of a vital business asset.

A SIP trunking solution requires an initial investment in expensive equipment and infrastructure as well as the ongoing cost of maintenance and service professionals. But despite these costs, this investment can lead to long-term flexibility and room for growth.

Size Matters

Smaller businesses will often benefit more from hosted PBX. Essentially an all-in-one telecommunications provider, the hosted PBX vendor delivers a hands-free telephone system that meets a small business’s needs without the cost of equipment and dedicated staff. Additionally, because hosted PBX is cloud-based, a small business has the option to switch providers without any significant interruption of service.

But as a business grows, it often needs much greater use of bandwidth and therefore requires more resources. A hosted PBX service can be expanded to compensate for the greater needs of a larger business, but this is usually accomplished at a higher cost. Eventually, there comes a point in a business’s growth when it becomes more efficient to opt for a SIP trunking solution.

A larger business with a SIP Trunking solution is able to manage its critical telecommunications system in-house and does not have to rely on an external supplier. This affords the business a level of self-reliance and allows for more overall bandwidth as well as room for growth.

Looking Ahead

Ultimately, it seems that both SIP trunking and hosted PBX systems have a future in enterprise telephony. Both systems are well suited to a particular clientele and have enough overlap in customer base to allow for healthy competition. Choosing between SIP trunking or hosted PBX is a matter of analyzing a business’s current and long-term needs.