Hosted PBX service vs. Managed PBX vs. SIP Trunking

For small business users, hosted (also known as "Hosted PBX" or "Virtual PBX") or managed VoIP services are a cost effective way to utilize the myriad of advantages business VoIP offers. These options enable the smaller to mid-size business to keep their operating expenses down, while putting more money back into their growing business.

Since there are many VoIP choices for business owners, we have provided you the information you will need to make an informed decision regarding your business telephone system.

Hosted PBX
A Hosted PBX (Private Branch Exchange) phone service offers businesses all the benefits of utilizing VoIP without the large initial investment needed to purchase your own network equipment.

In a Hosted PBX agreement, the equipment resides with the provider. The service provider of the hosted PBX is onsite or on call at all times and can quickly resolve any service problems remotely. Hosted services also enable a business to take advantage of redundancy and backup procedures that would be costly to maintain on premise.

With Hosted PBX, the purchase and lease of phones is only necessary on an as-needed basis. Your system can grow with the business, by just adding phones. The Hosted PBX service provider takes care of the needed system updates and enhancements automatically. The biggest advantage to small business owners is that the Hosted PBX service providers offer support as needed, so the extra staff is not required to support your service.

Managed PBX
Managed PBX Service agreements enable you to outsource the management of your PBX system, in your own facility. Managed PBX service providers charge a monthly fee and you are given a fully managed system solution, with the benefits of having total in-house control.

Managed PBX services also allow you to combine the maintenance of your voice and data solutions, and the service problems are handled remotely—even off hours. If a technician is required to come to your location, the issue should be resolved completely.

In addition to receiving statistics and reports necessary for your business, another benefit of Managed PBX services is the typical per-line charge, making this a good choice for small businesses. Managed service providers normally assign a specific service specialist to your account. This representative is responsible to oversee your account and make sure your system is properly maintained and serviced.

SIP Trunking
SIP Trunking is a single conduit pipeline for multimedia elements (voice, video and data). SIP Trunking eliminates the need for traditional voice circuits by utilizing IP connections and either a private network or the public Internet for infrastructure.

SIP trunks can support videoconferencing and unified messaging--high quality and high-end multimedia services. SIP Trunks are used in conjunction with an IP-PBX. SIP Trunks have the benefit of cost savings of SIP along with the increased reliability. This is a smart and cost effective solution to customers and allows the flexibility of using multiple service providers. Also, SIP Trunking allows for easy to scale-up as the company grows.

If you are interested in any of the above services, call Converged Network Services Group at 1.866.738.1662.

Hosted and Managed PBX

Dear Metro,

Can you tell me the benefits of a hosted and a managed PBX? We are considering a PBX for our growing business in Charlotte and aren't sure which way to go.

Charlie S. Charlotte

Dear Charlie,

Thank you for your question. A PBX (Private Branch Exchange) is a private telephone network for businesses. Users of the PBX share outside lines for making telephone calls outside of the PBX primarily to reduce the total number of telephone lines they need to lease from the telephone company--which reduces a company's expenses.

If you are looking for VoIP, your choices are: managed, hosted or on-premise systems. You asked about managed and hosted--which are similar:

Managed VoIP
With managed-VoIP services, a third-party vendor provides equipment, software, operations facilities and technical support. The benefits are having an IP-enabled phone system without the costs, risks, etc of a VoIP solution. With managed VoIP is you can run an effective business phone system with limited or no internal IT resources.

Pros on the managed PBX include 24/7 support, faster time-to-market, a potentially aggressive product-development cycle, low up-front cost and predictable monthly operating expenses.

Hosted VoIP
Hosted-VoIP services rely on a service provider’s hosted-PBX equipment to route a company’s voice and data traffic. Calls are routed over the PSTN (public switched telephone network) to the hosted-PBX system.

This method is also best suited for small and medium-size businesses with limited IT resources and budget.

Pros of the Hosted PBX include the adaptability to accommodate the fluctuating needs of a growing business, or even the seasonal peaks and economic swings. Also, the seamless integration with most legacy systems is a plus. With hosted PBX there is no need to purchase VoIP hardware or software , and 24/7 support and monitoring by trained IT staff is included.

To determine if managed or hosted PBX is right for your company, please give us a call at 1.866.738.1662.

Metro
Converged Network Services Group