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We have heard the differences between legacy PBX systems and hosted ones one too many times but guess what, it is all acceptable in helping a business owner and an entrepreneur make the right decision. What exactly is the right decision? Depends on what you, the business owner, wants it to be.

Before making the decision in haste, there is one very important decision that you should make: Determining if a premises-based solution (which involves hardware kept on-site in your office premise), or a cloud phone system (where your phones connect via Internet connection to a provider that maintains the equipment at an off-site cloud data center) is not an easy decision to make by any means.

This is why educating yourself through this comprehensive guide will allow you to overcome the decision making challenges that you were not able to complete in the past. Here are the differences between legacy and hosted PBX systems.

Features of both systems

Many hosted PBX providers are not able to offer the same features in their hosted product as they do for their premises-based solution. If cost reduction and flexibility are your main concerns, then hosted PBX systems is the solution that you are going to have go for or, if you have sufficient funds lying around, then you can continue to run your traditional PBX system.

Upfront Cost

As majority of you are well aware of, hosted VoIP solutions have a low upfront cost and service providers charge customers through a monthly fee structure. Using VoIP with an on-site server has a higher cost upfront, but then you will not be required to pay a monthly fee.

Remember this though; only after a certain threshold it becomes more cost effective to purchase your own equipment than to pay a monthly fee. Hosted VoIP tends to be the most attractive for businesses that are small to medium sized ones. Additionally, a cloud phone system can often have a very low total cost of ownership due to the savings in IT personnel and because the service provider takes care of all the maintenance procedures.


Do you believe that your business will proliferate in the next year? If you feel that there is potential for rapid growth you will need to consider how this will impact your purchase. If going with a premises-based solution, you will most likely want to purchase more hardware in order to accommodate for the operations of the business. With hosted VoIP however, new users can be added to the cloud phone system as needed. Furthermore, the software running on cloud versions is extremely easy to use and allows for seamless integration.

Purchasing the right phone system is important for the success of your business. There are many factors that come into the equation when you want to decide between a premises-based or cloud VoIP phone system. While each type has their pros and cons, hosted solutions possess the upper hand.

Wavetel has a team of experienced representatives that can help you decide what is better for you and how your business can benefit from a hosted solution However, it all comes down to what you want to run right?


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