Hosted VoIP/SIP Versus PBX

Updated: July 27, 2010

If you have a T1 or above connection (which you should), and are on a tight budget for spending cash, do yourself a favor and go hosted VoIP/SIP...don't spend what will still be a lot of money on a used or refurb system and buy someone else's headaches. In today's market you can go with a hosted setup with NO up front cost at all...absolutely no cash outlay for a brand new phone system with all the bells and whistles...and I mean all the bells and whistles. This will cost you $12-20 per line, plus $12-20 per phone, or about the cost per line for service from AT&T, depending on what provider you use. You will also have the option to include unlimited domestic long distance (maybe $20-30 a month) or a package that includes a certain number of bundled long distance minutes per month, say 5000-10,000 minutes. You'll usually get installation free, with free in-house training and support included. You can add DID's for probably another $10 for a block of 20 and an auto-attendant for maybe $10-15. You automatically get a smorgasbord of calling features including items like 'find-me-follow-me' and four digit dialing between extensions.

So, the question is, why would you spend thousands of dollars up front on a PBX system that will be obsolete in a few years when you can get a cutting edge virtual PBX, with everything you want included, for no money down and $24-40 a month per line, including all maintenance and support? Today, it's the way to go. ..and almost every telecom company out there offers this product, so there are lots to choose from. Just make sure you go with a reputable provider with a strong proprietary fiber network and not passing VoIP over the Internet. That way you have Quality of Service (QOS) as well. The problem enters when VoIP is run over the public Internet, no QOS and security issues as well.

Featured Research
  • Are You Using These 5 VoIP Features?

    In large part, the success of your business depends on the strength and reliability of your team’s many communication networks—this includes your Voice over Internet Protocol system (VoIP). more

  • Go Mobile and Increase Employee Productivity

    The Bring Your Own Device (BYOD) and Voice over Internet Protocol (VoIP) tech trends now allow people to work whenever, wherever, and however they want—mobility makes it happen. more

  • [Infographic] How to Select a Phone System in 10 Steps

    Choosing the perfect phone system for your business is no small task …. Depending on the size of your company, the industry in which you work, and the specific needs your phone system will be required to meet, any number of solutions could get the job done. more

  • 2017 Business VoIP Cost Guide

    Reducing expenses is one of the main reasons that businesses switch from traditional office phone systems to VoIP technology. But many people rush this decision and end up spending more than they need to. The costs of implementing a new VoIP system can increase quickly, especially if you don’t strategically plan for it ahead of time. more

  • How to Improve Call Quality

    Business success is heavily dependent upon its employees’ ability to communicate. Luckily, Voice over Internet Protocol (VoIP) technology gives companies a communicative advantage. more