SIP trunking or hosted PBX? That is the VoIP implementation debate.
Both are viable approaches when looking for a VoIP solution, which is the only problem. It’s up to you to decide which makes the most sense for your business.
As is true for any business technology decision, it’s essential to know both sides of the story—the pros and cons of SIP trunking and hosted PBX.
When Does SIP Trunking Make Sense for VoIP?
SIP trunking services act as a gateway so you can move your on-premise PBX to VoIP.
With SIP trunks connecting on-premise equipment to internet telephony service providers, you replace legacy primary rate interfaces (PRI) or analog lines. And enhance your current system with typical VoIP features (automated attendant, voicemail, automatic call distribution, call transferring, and more).
Keeping your communications system on-premise comes with a few distinct advantages as you transition to VoIP:
- Call Quality Benefits: While many SIP trunking providers use the public Internet for connectivity, you could potentially connect via a dedicated link for improved reliability and security.
- Control Lies with Internal Staff: While you may already have a trusted IT staff, there are third parties (such as CTG) that are able to maintain this as well. You have the option to have the control be in the hands of your staff or allow a trusted third party take over for you.
- Support for Large Companies: SIP trunks are priced according to the number of concurrent calls that can be made. If you’re staffing a massive call center, there’s predictability in deploying VoIP for so many users.
- Cost Savings Compared to Legacy Systems: Combining audio and video over the same data link and pooling phone lines across locations mean you can save money as you scale VoIP services in a large business.
Even if these benefits seem valuable, you can’t plan a move to VoIP with SIP trunking if you don’t have a dedicated IT staff. You’ll need experienced IT personnel to manage bandwidth demands and troubleshoot inevitable issues on-premise.
Not only that, but SIP trunking comes with significant CapEx demands as you implement an on-premise phone system with local hardware. If those upfront costs are too much or a challenge to manage your business, hosted PBX might be more appropriate.
When Should You Consider Hosted PBX?
Hosted PBX is a complete communications solution. Once the hosted PBX connects to your PSTN, the service provider takes care of the management tasks that SIPtrunks internal staff demands.
The benefits of hosted PBX include:
- No Internal Expertise, No Problem: For many small & medium-sized businesses, employing an experienced IT staff just isn’t possible. With hosted PBX, many processes such as adding or removing users can be taken care of from a simple web interface. CTG is available as a resource that can help you deploy and maintain this solution.
- Focus Solely on OpEx: With hosted PBX, there’s no on-premise equipment to purchase. Saving on the upfront costs can help you budget for a hosted PBX provider’s ongoing subscription expenses.
- Simplified Scalability: Hosted PBX offers simple scalability (up or down) for virtually unlimited numbers of users.
- Advanced VoIP Features: With hosted PBX, you can access advanced features like video conferencing, CRM or Email integration, and mobile support, depending on the vendor you choose.
- Analytics: Hosted PBX gives you the access to real-time monitoring and report analysis of all the activities in your PBX. Some of these activities include ongoing or missed calls, active or available agents, and call rates.
As you look at these benefits, just keep in mind that the service is entirely reliant on your internet connection. If you haven’t invested in robust connectivity, the whole system could suffer.
Hosted PBX vs. SIP Trunking—It All Depends on Your Situation
It would be nice if there were a simple answer to the hosted PBX vs. SIP trunking debate. However, the reality is that both are viable options for companies of all sizes.
With trusted third parties such as CTG, the opportunities are endless. You may have uncertainty of handing off specific projects to those outside of your own internal team. When in doubt, consider your internal IT staff—can they handle the additional responsibility of supporting VoIP if kept on-premises? CTG is there to help you jump through those hurdles where you are finding yourself wondering.