SIP Trunking vs. Hosted PBX- A Definitive Guide

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SIP Trunking vs Hosted PBX

For many business managers who wish to achieve lower business communication costs, it can be challenging to understand all the options available. Without a technical background in VoIP, it is difficult to understand things such as SIP trunking and PBX and the relative pros and cons of all the options available.

The truth is, a proper business communication system is not a choice between Hosted PBX and SIP Trunking. They are of different terms such as Hosted PBX services using SIP to connect to a VoIP endpoint (such as a VoIP phone or mobile application), and the PBX at the customer premises can use the SIP trunk (as a replacement for expensive PRI).

Learn About The Hosted PBX and Sip Trunking

A business phone system is also known as a PBX, which stands for Private Branch Exchange. A PBX is responsible for connecting mobile phones and voice applications such as an auto-attendant, voicemail, etc. Today, the PBX is a telephone software that runs on a server in the office or hosted by a third party.

Whether or not the host or IP PBX in your office will be connected to the Public Switched Telephone Network (PSTN) for outgoing calls. With a hosted PBX phone system, PBX and SIP trunking services are stored offsite and managed by the provider. With SIP trunking, PBX is installed and maintained by your own IT staff, and you are also responsible for buying and maintaining a SIP trunking service.

Difference between Hosted PBX and Sip Trunking

At the heart of all business phone systems is PBX or Private Branch Exchange. A PBX is a switchboard that connects callers to the desired internal extension and allows the company to stream all external communication (incoming and outbound) on the internet.

The difference between Hosted PBX and SIP Trunking is in the deployment of its PBX.

  • The difference in Their Hardware Cost

Your office will require IP phones, routers, and business-class broadband services to set up a hosted PBX. Provider “hosts” who PBX servers and maintain them, so you do not need any additional hardware. From this standpoint, hosted services to save money on the cost of the initial startup.

An on-premise PBX and SIP trunking, on the other hand, requires a significant upfront capital expenditure. IT staff must install in the IP PBX server and connects the SIP trunking service. Additionally, it is often recommended that a separate installation business Internet connectivity SIP trunking services.

  • Scalability Difference

SIP trunking telephone systems can scale-out, to an extent, but they require you to buy more servers on-premise when you expand significantly (and quickly configure plan accordingly). One PBX can usually handle up to several hundred phones.

Reputation hosted VoIP services; on the other hand, it has virtually unlimited space for your users. Hosted VoIP phone system allows you to add new phones and users for your phone system in a few simple steps. It is usually so easy that non-IT professionals can handle it. With IP phone boot, the entire process to add a phone to the network you can do within your web browser.

  • Calling Feature Difference

Hosted PBX companies compete with each other to develop a feature leading business calls.

On-premise PBXes tend to lose this new feature unless you have an outstanding software engineer to build and maintain custom telephony applications.

  • The difference in Their Maintenance Cost

The only kind of treatment you will be responsible for the hosted PBX is to add users, change features, and other internal housekeeping. The phone service provider will take care of the server and software maintenance. They have a dedicated IT staff who manage outages, disruption, and the entire system upgrade.

On the contrary, this issue should be handled by your own IT staff if you are using an on-premise SIP trunking service. Servers are placed on your place, and their maintenance will be handed to you. If the PBX provider releases a new update, your network administrator must reinstall the software and reconfigure it.  This can mean unscheduled downtime for your phone system.

  • Different in Security Features

Often with SIP trunking and Hosted PBX, the most critical variable in your calls’ quality is your internet connectivity. If you suffer from internet connectivity jitter, delay, packet loss, or the bandwidth is not enough, this will lower your phone call.

If SIP trunking services you choose to walk to your connection (not via the public internet), this lends to connectivity and better security. You can check with the phone system provider how they ensure call quality and security (e.g., geographical distribution platform, utilizing the redundant operator, using the shortest path routing of calls, encrypted end-to-end).

There are many features to consider when selecting a business phone system for your organization. Choose Wisely after considering all these features and differences between the hosted PBX and SIP trunking.