SIP Trunking or Hosted PBX: Telephony Planning for a Growing Business
Every 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.
VoIP vs PBX: The Benefits and Disadvantages
With more available options for communications, many businesses are looking at what service they should use for their telephone line: a more traditional Private Branch Exchange (PBX) or the newer Voice over IP (VoIP).
Both services have their advantages and disadvantages, including cost and reliability. PBX may be an easier option for internal employees, because it allows businesses to connect all their internal phone lines to a single leased external phone line. In most cases, this means that employees would only need to dial an extension number rather than dialing the full number to call a coworker.
VoIP, on the other hand, uses the Internet to make phone calls by transferring audio information as digital data. It possesses many of the same benefits as a PBX, but it has a lower cost. However, there are also some disadvantages to a VoIP system, leading some businesses to consider an IP PBX system, a combination of the two.
Cost
For large businesses or those that are geographically dispersed, cost may be the single biggest factor in whether to choose PBX or VoIP.
Using a PBX system comes with a monthly charge that can fluctuate depending on how many phone calls are made. In addition, whether or not these calls are made internationally can increase the price. However, VoIP systems use the company’s broadband connection to place phone calls, meaning that the majority of the calls are free no matter where in the world the person is calling. Another benefit of VoIP is a low initial cost; instead of an entirely new system, businesses only need to purchase phone adapters that will change their system from analogue to digital.
Reliability
While cost is lower for VoIP, its reliability can sometimes come into question when compared with a PBX system. Because VoIP relies on the company’s Internet connection, loss of power or connection means that phones will also be unavailable. In contrast, PBX systems are powered by the telephone wire itself and will still work even if the power is out. Some businesses are looking into an IP PBX system for this reason: The ease and cost of a VoIP system with a few PBX lines is ideal for emergencies.
Quality
The company’s Internet connection will also affect the quality of phone calls made over VoIP. Small companies with slow or low-capacity Internet will find that voice quality is lower than with PBX. Fortunately, there are many features in a VoIP system—such as the ability to access a work phone number no matter a person’s physical location—that will encourage businesses to upgrade to a more robust Internet connection.
IT professionals and business leaders should have a good understanding of the pros and cons of VoIP and PBX before deciding which one to purchase. While cost is lower for VoIP, PBX has the advantage in reliability and will still work even without power or an Internet connection. However, with the speed with which today’s digital world moves, businesses may find that VoIP allows them the mobility to keep up – with PBX lines as a backup.