Selecting the Right PBX Phone System for Your Small Business

Selecting the Right PBX Phone System for Your Small Business

For many organizations, the most efficient way to do business is direct calling. And if you’re like those organizations, having the right business phone system is absolutely essential for the overall operation of your business. Do you know if you’re taking advantage of the best system — at the most cost-effective price point — for your business’s needs?

Whether you’re already using a PBX phone system or you’re considering making the switch from a multi-line system to PBX, you should know if it’s well-suited to your business. Let’s take a look at what you need to know about the different types of PBX phone systems for small businesses. And as always, we’re here to help when you need expert advice!

Traditional PBX Phone System

Traditional PBX phone systems use physical PBX hardware and conduct calling over traditional landlines. Because this type of system is hard-wired to the circuits, it’s highly reliable. But that level of reliability comes at a price, both in terms of scalability and initial setup costs. 

Adding new lines to a traditional PBX phone system can be challenging because of the amount of physical wiring required. The system can also carry hefty upfront installation costs due to all of the hardware required to get the service up and running. That said, if your business office already contains the necessary wiring for a traditional PBX phone system, those costs can be significantly reduced.

Another important consideration with traditional PBX phone systems is maintenance and repairs. Since all of the hardware is on-site, routine service and troubleshooting must also be performed on-site. If your business doesn’t have anyone on staff who knows how to troubleshoot and service the system, you’ll inevitably incur additional costs to hire outside maintenance contractors.

On-Premise IP PBX Phone System

An IP PBX phone system is an on-site phone system that shares a few similarities with a traditional PBX. Because the system is on-site, it requires the purchase and installation of all the hardware and software required to get the phone service up and running. Depending on the provider, you’ll either pay for these components upfront or sign a leasing agreement.

Unlike a traditional PBX phone, however, an IP PBX system makes calls using VoIP, which modifies communication data into packets and sends them over your IP network. Sending data over the network in this way ultimately makes each call less expensive than it would be when routed through a traditional PBX system.

If your business makes multiple simultaneous calls per line, opting for an IP PBX phone system may be the most cost-effective, per-call service option.

Hosted PBX Phone System

A hosted PBX is an off-site IP PBX phone system maintained by a third-party business phone system provider. This type of system is also referred to as a virtual or cloud PBX phone system because it puts your entire system in the cloud. Since it involves third-party hosting, you’ll pay a monthly fee for that service.

Like an IP PBX phone system, a hosted PBX uses VoIP phone signals for calling, which eliminates the need for purchasing physical hardware, save for handsets. Because all of the system’s features, calling services, and applications live in the cloud, hosted PBX is even easier and more affordable to set up than an IP PBX system.

Furthermore, since the system is hosted, you don’t need to worry about handling repairs or maintenance to back-end equipment because the hosting company takes care of those issues. As far as scalability and flexibility go, a hosted PBX can be a highly cost-effective option when your business needs easily accessible and manageable advanced calling features. 

It’s important to note that if you want to optimize the performance of a hosted PBX, it’s usually best to look for a business phone system provider that also offers data connection options. Since a number of factors can diminish the quality of VoIP calls routed through a hosted PBX, keeping the system on your own data network will help mitigate lag and delays. 

Searching for the Best PBX Phone System for Your Small Business? Get a Free Business Phone System Quote Today

Whether you’re looking to upgrade your business’s existing PBX phone system or you’re ready to make the switch to PBX, let our team at Lighthouse Technology Solutions help you out! We specialize in a variety of business phone systems for organizations both large and small and can help you determine the best setup for your unique needs. We’ll analyze your existing system, determine where it can improve, and find the most cost-effective solution for your budget.

Aside from phone systems, we also offer a range of business internet solutions, as well as consulting and project management for cybersecurity, data storage, surveillance, and much more. Whatever your business’s technology needs may be, we can help you find the best products and services at the most cost-effective rates.

To learn more about how we can help you, feel free to call our Minneapolis office today at 612-345-9177 or request a free quote online

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