People still need to be able to talk voice to voice for best results

In a world with abundant business communication channels – emails, texting, website dropdown platforms and chatbots – speaking to an actual person through a voice solution is still a hugely important element of the overall communication suite. Texting or chatbots alone can’t replace the personal touch.

Having the option of speaking to a person in real time enables a more intimate connection, helping to develop strong relationships and trust between your customers and your company.

In this article, we’ll compare on-premises PBX with cloud solutions – which one is best for your business?

 

Outlining Your PBX Options

 

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“Hold on please while I put you through…”

Is there any customer out there who has never yet heard these words? Probably not – it comes with the traditional PBX and customer service territory.

PBX, or Private Branch Exchange, is a well-known element of any organisation’s communications systems between employees and customers. The technology provides telephony functionality such as call transferring, conference calling and voice mail.

The traditional PBX, which has been used for decades, is a business phone system that connects all office desk phones within an organisation on the same network, relying on copper landlines, with the PBX hardware installed on-site.

Over the last decade, we’ve seen a rise in hosted PBX solutions, which are cloud-based alternatives offered by VoIP (Voice over Internet Protocol) providers. Cloud PBX offers many of the same features as traditional PBX, with less complicated on-site installation and maintenance, potential cost savings, a number of useful features and minimal hardware requirements. 

 

 

Differences Between On-Premises and Cloud PBX Systems

Different aspects of each system provide insights into how each one could align with your different business needs and environments.

 

Costs

  • On-premises PBX systems usually require a higher initial investment in equipment and installation costs. There are likely to be costs associated with maintenance and upgrades.  
  • Cloud PBX generally involves a lower initial setup cost because it needs minimal physical infrastructure. Due to economies of scale, providers can offer Cloud PBX services at a nominal monthly fee, making it cost-effective for businesses with limited capital. A reliable Internet connection is a critical core cost factor, but with advancements in technology, high-speed internet is becoming more accessible and affordable. This allows customers to maximise their investment into quality data connections for their Cloud PBX services   

 

Scalability

  • Expanding an on-premises PBX can be expensive, often requiring physical hardware or licensing additions.
  • In contrast, a hosted PBX solution allows businesses to add or remove services as needed, providing greater flexibility and cost savings. 

 

Maintenance and Upgrades

  • On-premises PBX systems require on-site technical support for maintenance and hardware upgrades. This can lead to operational disruptions and additional labour and parts fees. Furthermore, when parts become obsolete, businesses may face significant challenges in sourcing replacements, leading to unnecessary downtime and further expenses. 
  • A cloud-based PBX system is maintained and upgraded by the service provider, and this remote management makes sure your cloud solution is always up to date with the latest features and security patches, with minimal downtime for the business.

 

Security and Compliance

  • On-premises PBX systems allow companies to directly manage the security policies of their hardware but are more susceptible to data breaches if these policies are not managed correctly. This includes risks from outdated software and weak passwords. On-premises PBXs also require physical security measures to protect them from unauthorised access. This would include secure rooms, surveillance and restricted access, which in turn could be more costly and complex to manage.
  • With cloud PBX solutions, it’s the responsibility of the vendor to ensure that the systems adhere to the latest security standards and compliance regulations, including the Protection of Personal Information (POPI) Act. Most cloud PBX providers implement advanced security measures to protect the data and prevent intrusions.

 

Reliability and Performance

  • On-premises PBX systems are vulnerable to issues such as wear and tear and power outages, because they use traditional phone lines to transfer phone calls. The costs to implement a Disaster Recovery (DR) strategy for on-premises PBX systems can add further expenses for a business.
  • The reliability of your cloud PBX system requires an excellent Internet connection. It’s useful to implement an Internet failover solution to ensure your internet connection remains up during any disruptions. The cloud PBX vendor should ensure the cloud PBX platform has sufficient redundancy built into it to provide continuous services for customers.

 

 

 

Vox and Your Business Communications: Key Takeaways

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Each of the offerings discussed has its own set of advantages and challenges to consider. 

  • Cloud phone systems, particularly hosted PBX systems, are fast gaining popularity as the preferred modern telephone solution for many businesses throughout South Africa. They are suited for companies looking for a minimal initial investment, and their flexibility is perfect for growing businesses or those with fluctuating needs. Furthermore, businesses can enjoy the benefits of a fully managed service where the service provider takes care of the support and maintenance.
  • On the other hand, on-premises PBX systems are generally more suitable for larger corporations with big budgets and space to host the physical hardware, as well as having the resources to manage and maintain the system.

 

Choosing between on-premises or cloud PBX must be based on careful assessment of a business’s specific communication needs, growth expectations and budget constraints.

The decision of which offering to take up lies with your business. The ability to offer the best of each possibility lies with Vox – with superb offerings such as our multiple PBX offerings, both on-premises and cloud, and including 3CX (Vox is a Titanium 3CX partner, the highest ranking that can be achieved).

Contact us for more information on choosing the best PBX offering for your business, and keep those voice-to-voice communications enriching your organisation’s customer experience on a daily basis.