An On-Premise PBX remains the Leading Choice for many Businesses
October 22, 2024
With lifespans that frequently exceed seven years or more, many companies
prefer an on-premise PBX to a cloud-based system. It's true that they usually incur
a greater initial investment. However, the savings over time can be
substantial compared to the reoccurring monthly charges that carry on month
after month with a hosted solution. In fact, so many companies prefer an
on-premise based PBX system that 40% of all new Unified Communication
systems that were shipped globally in 2024 were on-premises PBXs.1
And half of
all installed Unified Communication systems are premise based.
What type of companies often prefer on-premise PBX systems?
On-premise PBX phone systems can do everything a hosted system can. The main difference is you own it and it resides on your premise.
Several business categories routinely prefer a premises-based PBX and include education, banks, industrial, retail, mixed office-warehouse facilities (often hybrid-installations), packaged goods, retail dealerships and manufacturing facilities. Some of these industries require more secure, customizable solutions, which are key elements of on-premise solutions. Other businesses want to operate with traditional phone sets so they can utilize existing telephone wiring. These types of establishments primarily maintain telephones on desks for their employees without using softphones. Examples are businesses that incorporate a mixture of office and warehouse space or manufacturing facilities. In addition, many small brick and mortar establishments look at the savings for a refurbished on-premise PBX phone system. Plenty of excellent systems exist that can handle most needs. These PBXs once installed and setup, can remain operating for years without requiring attention.
On-premise PBX Phone Systems have an extended lifespan, frequently exceeding seven years.
- They have lower costs in the long run.
- Tax incentives provide for accelerated depreciation, an added economic bonus.
- Employing SIP providers reduces calling costs.
It's easy to become overwhelmed with all the information obtainable. A preferable option is to respond to a few straightforward questions and let a professional quote a solution.
The easiest way to find the best phone system.
Take
a moment and respond to a few simple, straightforward questions and let a
professional quote a solution. There are advantages to experience. A
telecom professional assesses your requirements and budget to determine
the best phone system for you and your business. They recognize types of
businesses and often the particular needs associated with that business,
and are skilled in establishing the preferred solution.
Hosted PBX providers operate on a subscription-based model, charging customers a recurring monthly or annual fee for each user. This builds a reliable, consistent income that can be highly profitable over time.
So, why do cloud-based PBX solutions continue gaining market share?
Traditional telecom manufacturers have encountered many challenges over the last twenty years, including slowing sales growth. Rapid changes in technological and business behavior have forced many on-premise product makers into an accelerated upgrade cycle, demanding extra development costs. Additionally, there has been a decline in hardware sales, such as desk phones, which represented a significant source of revenue. The impact of soft phone alternatives has exacerbated this. And last, once installed and set up, an on-premise PBX does not provide reoccurring monthly charges like cloud-based systems which have proved to generate a more substantial return on investment. Another reason has been the evolution and growth of start-up companies and small organizations that operate with dispersed at home employees. These types of companies, many of which do not occupy any office at all, are ideal candidates for hosted PBX providers. A number of virtual PBX providers have created platforms that handle voice, video and collaboration tools utilizing a user-friendly app without the need for a traditional telephone.
On-premise PBX Manufacturers
- Mitel: A prominent manufacturer with established systems for small to medium-sized companies.
- Avaya: A leading choice for very large companies and hybrid (IP and digital) installations.
- Cisco: High-end enterprise solution.
- Sangoma: They offer excellent, cost-effective and scalable IP solutions for small to medium businesses.
- NEC: A long-time leader of on-premise business phone systems that just announced it will phase them out.
- Yeastar: Effective solutions for multi-location businesses and remote users worldwide.
- Allworx: For over twenty years, supplying a PBX to professional services, retail, hospitals, and school districts.
- Zultys: Their IP-PBX is an easy-to-use, secure, and reliable communication system for any size enterprise.
- Fortivoice: A company founded on firewalls and intrusion software (Fortinet), their IP-PBXs incorporate advanced security.
- Grandstream: They provide an affordable award winning IP-PBX system that can be tailored for many types of businesses.
- Xorcom: They offer a broad and flexible range of solutions and hardware platforms.
Resources: 1Why Enterprise Premises UC Systems Remain a Good Investment noitter