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Hosted PBX or Premise-Based System? What Every MSP Should Know

Hosted PBX or Premise-Based System? What Every MSP Should Know

With everybody and their brother pushing Hosted PBX services, why even consider an IP-based system? In this article, we’ll take a high-level look at the major differences and benefits of each.

Hosted PBX


As we’ve discussed in other articles, Hosted PBX is a cloud-based business telephone system. By utilizing the cloud, businesses that would have traditionally been forced to purchase an expensive premise-based system can now pay for only what they need and scale their service as their business grows. HPBX service is typically sold by the “seat.” The service most often includes:

  • Features – System features like auto-attendant, voicemail, individual extensions, and many others you’d expect to see in a business phone system are available as standard HPBX offerings.
  • DID’s – Direct inward dial (Phone Numbers) can typically be purchased individually, or in bulk. Most often, existing phone numbers in use by the business can be ported to the new HPBX service.
  • Usage – Local and long distance usage. Historically, traditional business phone service would include unlimited local calling. The subscriber would then pay a-la-carte for long distance at premium rates. Because the internet is now transporting calls as data packets, minutes are minutes, so they’re often bundled and sold in packages. Many HPBX providers will sell unlimited minute packages as well.

While much less expensive, HPBX may not be a great fit for everyone. Most often, calls are transported over the public internet and call quality cannot be guaranteed. For a detailed look as to why, please download our HPBX guide for MSPs.

Additionally, bandwidth demands for calling may impede existing internet usage if not properly architected.

Premise-Based IP Systems

phone.jpgPremise-based IP phone systems still have a place in Corporate America. Many larger companies still prefer to deploy a premise-based system for any of the following reasons:

  • Control – Many system administrators like having equipment on-site. On-premise hardware offers direct access for troubleshooting and programming.
  • Security – Some businesses are forced to adhere to very specific security and compliance standards. In these instances, the business may be required to maintain their IP phone system on-site.
  • Speed – Maintaining an IP system internally is ideal in a very large organization as inter-office calling will be much more efficient. Rather than leaving the network, hopping around the internet, then returning to a coworker six desks away, the call will traverse the internal network only and travel at Ethernet speed or greater.
  • Advanced Features – Features like call recording, conference bridging, and call center are ones not often included with Hosted PBX offerings.

Whether you’re looking for a premise-based IP phone system, or an HPBX partner, N2Net can help. With over 23 years in business, N2Net can offer its MSP partners HPBX and IP-based systems that work. N2Net is one of the few VoIP carriers who can offer dedicated internet connections to your clients, offering you the option to guarantee call quality. Contact a VoIP specialist today and find out how N2Net can make you look great to your clients.