When it comes to switching from legacy phone systems to omnichannel software-based communication solutions such as a 3CX phone system, the most painstaking process is to identify whether to host the phone system in the cloud or go with the on-premise installations. The decision is driven by a number of factors such as the advantages of each solution, unique business requirements, limitations, and compatibility with the existing system. 

In this detailed blog, we will be discussing each of the above factors to empower businesses to make a better-informed decision to deploy or upgrade their communications system. 

Choosing Between an On-premise or a Cloud PBX 

Before we discover the benefits and limitations of each deployment model, let’s understand the basic differences between 3CX hosted vs self-managed phone systems.

PBX is short for Private Branch Exchange, and this private branch enables users to benefit from enhanced interconnectivity with the internal departments of a company as well as with the customers and clients at the same time. PBX is simply a communication system that allows multiple users to talk to each other at a given location.   

PBX phone system incorporates various channels (VoIP, PSTN, GSM, ISDN) to maintain swift communication both internally and externally. With a PBX phone system, businesses can manage and automate call routing, call forwarding, call recording, and customizing automated responses with advanced calling features. 

What is an On-premise 3CX Phone System? 

Now that the functions of a PBX phone system are simplified, it is easier to learn the differences between the two different deployment models. With an on-premise PBX, the organizational communication system is installed on a PBX server that is physically set up on the premises of the given company.  

What is a Hosted 3CX Phone System? 

In contrast, a hosted PBX system does not require any communication server to be installed on the company’s premises. Rather, the PBX is hosted on a cloud server or data center. All the communication signals are therefore processed from this cloud PBX into the VoIP phone systems deployed on the associated organizational premises. Hence, a cloud PBX system uses the same internet connection that provides internet connectivity for other business operations. 

Choosing Your 3CX System: In the Cloud or On-Premise 

Now that the specifics of both PBX phone systems are defined, deciding the PBX solution for your business needs to consider the following factors: 

1. Internet Connectivity 

This is the most basic element of the decision-making process. Since hosted PBX solutions operate on the internet, it is essential that your business systems are compatible and powered by ultra-wideband connectivity. This ensures that communication across the hosted PBX will be steady and smooth.  

If a business is located in a place or country where internet connections are likely to disrupt frequently or do not support ultra-wideband connectivity, then a cloud PBX system will create more problems rather than simplifying the communication system.  

2. IT Administration 

The incorporation of an in-house IT administration team enables companies to determine if the 3CX hosted phone system on the cloud is viable or whether they should go with on-premise installations. While some businesses can capacitate a full-time in-house IT administration, others cannot. On-premise 3CX phone systems require IT expertise with dedicated skills to deal with installation, configuration, management, and troubleshooting associated with PBX systems. If an organization can afford to onboard an IT expert, then a locally managed on-premise PBX phone system is viable. 

Contrary to this, if your core business functions do not require an IT team, it can be pretty expensive to manage an IT team for the maintenance of your PBX phone system. In such a situation, a cloud-based PBX system is a sustainable model as there are no hidden costs of maintenance and businesses only need to pay a fixed monthly fee that takes care of the management and administration of your PBX phone system.  

3. Company Size 

At the bottom of the funnel, the decision-making of whether to go with a hosted or on-premise PBX system is directed by the size of the companies. PBX phone systems are designed to incorporate the budget limitations of companies of different sizes.  

Cloud-based PBX Phone System is the best-fit solution for small to medium-sized companies. The reason is that they require a relatively smaller number of phone extensions and cannot afford in-house IT administration. However, large corporations with a very high number of phone lines require greater levels of customizations and call flows that are better served with an on-premise PBX phone system.  

The decision between an on-premise or hosted/cloud 3CX phone system largely comes down to your business’s existing resource infrastructure. If you already have the necessary network, security, power, and server capabilities in place, an on-premise PBX can be a solid choice.

Just keep in mind that even with a support package, you’ll still need an IT administrator to manage the daily operations of the on-site PBX. On the other hand, if you want to minimize the resources spent on managing your communications system, a hosted or cloud-based PBX solution may be preferable.

The choice between on-premise and hosted/cloud 3CX phones depends on your need for control, IT capabilities, internet connectivity, and existing resources. If your team has the skills to manage a software PBX, a hosted solution allows you to outsource hardware while retaining control over data and settings. However, for businesses with limited internet access, an on-premise system may be more reliable. Carefully considering these factors will help determine the best fit for your business.

Advantages of an On-premise 3CX Phone System 

  • Complete control over the device hosting your organizational PBX system.
  • Direct connectivity with the gateway for traditional phone lines.
  • Continued access to dedicated databases, CRMs, and ERP systems that are not compatible with cloud systems.
  • On-premise PBX 3CX phone systems continue to operate even in the event of an internet disruption by utilizing local backup routes and traditional phone lines.
  • It is usually more efficient to use an on-premise solution for infrastructures with many extensions, especially when advanced features such as call recording are used.
  • Communication exchange over the data line is limited to the VoIP provider and any remote extensions only. 

Advantages of a Hosted 3CX Phone System 

  • No hidden costs and lower capital/infrastructure investment, making it a cost-efficient system 
  • Cloud PBX 3CX phone system is provided as a UCaaS, Unified Communications as a Service. Therefore, the cloud solution comes with maintenance and troubleshooting services. 
  • Using data bandwidth available through the hosting provider, remote co-workers, secondary corporate locations and employees using smartphone clients connect directly to the cloud PBX. In this way, the load on the companies’ XDSL line is reduced by promoting remote work culture. 
  • Fully operational communication system without maintaining in-house IT experts to manage the PBX system.
  • Fewer critical issues are associated with the PBX system as all system maintenance and upgrades are managed by the 3CX experts as a third-party service provider.
  • Enhanced data protection as every signal processed through the cloud is encrypted to minimize the risks of cyber frauds such as phishing and ransomware. 

Switching is Easy!  

RingOffice has deployed a team of VoIP communication consultants and experts to implement 3CX phone systems for businesses. With a cloud-based communication system that’s affordable, secure, more convenient to use, and fully managed, you don’t have to compromise on management, control, or integration. 

If you are looking for a provider of a 3CX phone system, do not hesitate tocontact the experts at RingOffice. We will answer your questions and help you choose the best option for your business. RingOffice provides its clientele with a wide range of communication integration solutions such as: 

Within each of these solutions, RingOffice prides itself in servicing excellent quality, featured with: 

  • Monitoring and Management 
  • Backups and Disaster preparedness 
  • Integrations and Mobility
  • Business-grade SIP Trunks
  • Unlimited 3CX Apps and License Support
  • Remote Administrator Support