Premise Based Phone Systems vs. Cloud Based Phone Systems

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Understanding the difference between premise-based phone system (also known as a PBX) and a cloud based phone system is critical when making a decision on which type of technology is best for your business. It’s also important to know that cloud based, also referred to as hosted or virtual phone systems, are being implemented by most businesses today.

There ‘s a lot of information on the difference between hosted and premise-based PBX, and below is a quick reference guide to what amounts to the advantages of a cloud based PBX solution.

Premise-Based Phone System

Your phone system is at your location and you are responsible for installing and maintaining.


  • Up to 40% more costly than cloud-based, requiring cabling, hardware, closet space, electricity, and cooling
  • Pay in advance for planned growth
  • Multiple locations require multiple phone systems
  • Pay for all upgrades and maintenance


  • Time-intensive setup, requiring the installation of significant hardware


Cloud-based Phone System

Your phone system resides in the cloud using your Internet connection with no on-premise hardware or software to install or maintain, except for phones.

• No hardware costs except the phones themselves
• Pay only for what you need & use. Scale up or down on demand.
• Multiple locations are supported by one phone system in the cloud
• Most features and upgrades are included in cost


  • Quick and easy setup and installation due to minimal hardware deployment


Contact us today to see how our cloud-based PBX solution can help your business.


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