There is no one-size-fits-all solution for business class cloud-based phone service. As VoIP technology has evolved and matured, organizations have more options than ever when it comes to selecting flexible, cloud-based phone systems. The right system for your organization's needs will meet your requirements for costs, features, reliability, scalability, and ease-of-administration.
If you’re evaluating phone systems for your business, it’s common to encounter an endless number of acronyms such as PBX, SIP, PRI, and more. To understand your options and which type of service best fits your organization’s needs, read on for a definition, pros, and cons of the most common approaches to business voice communications.
The first decision your organization will need to make when switching to VoIP phone service is about hosted vs. on-premises solutions. Organizations can implement IP-based phone service using their equipment which is maintained on-premises, or partner with a vendor for hosted IP phone service.
An on-premises deployment of a Private Branch Exchange (PBX) is an approach to business communications where the PBX equipment is owned, maintained, and operated by the organization. This approach offers maximum control over the hardware and configurations but requires more lifetime system maintenance than cloud-based alternatives. The upfront investment costs for an on-premises PBX system are also costlier than hosted options.
A hosted private branch exchange (PBX), also known as a virtual PBX, is an approach to hosted, cloud-based business phone systems delivered in partnership with a cloud vendor. This is an alternative to traditional PBX systems which are located on-premises and maintained by the organization’s IT team.
Within a hosted PBX delivery model, the vendor manages the technology and protocols required to support call switching and routing, while providing user-friendly administration tools for the client to scale phone lines and features.
Is PBX hosting right for your business? As an alternative to on-premises PBX systems, a virtual PBX system can offer significant ease-of-use and flexibility for many use cases. Some organizations may choose to continue using existing technology to realize an investment in a premises-based PBX system fully. However, for many companies that are comparing hosted PBX to premises-PBX, virtual PBX is the right choice.
A Primary Rate Interface (PRI) is a term used to describe T-1 transmission technology which has been used to support residential and business voice communications for over 40 years. PRI is a standard used to define the delivery of voice and data through physical copper cabling in a business building’s telecommunications risers.
PRI lines are supported by a PRI circuit, which includes a total of 24 channels. Each PRI circuit can support 23 concurrent calls, with a final channel used for caller ID and other call-related functionality. PRI technology submits voice calls as electrical pulses and routes voice communications using traditional telecommunications carriers. Businesses who use PRI rely on traditional telecommunications providers for modifications to cabling infrastructure to add lines, perform maintenance, or upgrade equipment.
PRI is an alternative to IP-based phone technologies, such as UCaaS, VoIP, or SIP trunking. When comparing to cloud-based options, it's important to look at the pros and cons of a PRI circuit:
Session Initiation Protocol (SIP) trunking is a set of technological standards used to support VoIP calls. SIP protocols initiate and end calls between a VoIP line and another number, support voice data transmission, and provide support for multimedia communications. While SIP is a VoIP technology, it can be used for the transfer of video conferencing, SMS (text) messages and other data in a Unified Communications deployment.
The costs of SIP Trunking can vary depending on a company’s technology requirements and vendor, but these systems are generally 25-60% cheaper than alternatives such as PRI lines, T1 lines, and analog lines. SIP Trunk pricing is primarily determined by SIP setup fees, phone lines, number porting fees, handsets, features, and monthly service costs.
Organizations that opt for hosted, cloud-based business communications may receive SIP trunking service through a vendor who hosts and maintains SIP equipment. SIP is an alternative to PRI because it eliminates the need for circuits, cabling, and on-premises phone infrastructure.
Traditional telephone lines can consist of PRI, T1, or analog phone line technology. They may be referred to by cloud communications providers as "POTS," an acronym for "plain old telephones." While many businesses decide to switch from traditional telephone technology to VoIP based on the potential for cost-savings and scalability, it can be confusing to navigate the abundance of options available for IP-based phone communications.
If you’re wondering if it’s time for a phone system upgrade, switching to VoIP can give your organization the benefits of flexible, cloud-based communications tools.
Your company has more choice than ever when it comes to finding the right kind of business phone service. Before making the switch, you'll need to evaluate the pros and cons of many types of services and features to decide which type of cloud-based phone system is right for your company.
Finding the right service provider is equally important to satisfaction. Regardless of which type of phone system you choose, partnering with a vendor that offers attentive, expert technical support and transparent pricing is critical.
To help you decide on phone service and provider, we've developed insight into the top questions to ask to ensure high-quality service at a price you can afford. Download your free copy of 10 Questions to Ask Before Buying Business Phone Service.
If you're in the D.C. metro area and would like to talk with a pro about your telecommunications needs, you can get a quote here.
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