PABX - Leasing vs. Cash Purchasing
Author: Gregory Rood | Date: 21 April 2009 09:00
Businesses are saving thousands by switching from traditional PABX systems to an IP based business phone system. Organisations have found that it is inefficient to run separate voice and data networks whereas a single integrated system capable of transmitting voice, video and data allows them to be more competitive. Not only do telephone calls cost less due to the efficient use of bandwidth but the cost of infrastructure procurement, maintenance and administration is also reduced.
These systems have expanded the use of technology developed to transmit data over the Internet reducing the cost of telephone calls. A private automatic branch exchange or PABX is used to “exchange” telephone calls within an organisation and also those originating from an internal line to an external one. PABX’s have been in use for decades. It is this technology which enabled services such as call forwarding, extension dialling, and hunt groups.
The growth of data networks in the last two decades led to the development of IP PABX which relies on packet switching whilst a focus on core competencies gave rise to the development of hosted PABX, commonly referred to as hosted VoIP. PABX services were not very practical for SMMEs whilst many larger organisations believe that outsourcing their telephony requirements made business sense. In the case of a hosted solution, infrastructure is located and managed off-site. Although this model has many advantages there is still a great demand for an onsite IP PABX.
Switching to an IP based business phone makes sense. Whether you opt for in-house IP PABX or a hosted VoIP, you will slash the cost of telephone calls and system maintenance. Making a choice between the two solutions can be tricky as both offer incredible value however their fundamental differences as well the advantages and disadvantages of each should be considered.
Firstly, an IP PABX business phone system is similar to the traditional PBX system which is installed at the user’s premises. The advantages of IP PABX include the use of dedicated circuits and a distributed IP network both of which translate to greater quality of service or QoS. It is also easier to add users to an IP PABX system and the only additional cost is that of an IP phone. Monthly costs are unlikely to increase.
A hosted VoIP solution is one in which the service provider hosts the equipment using a centralised switch. The greatest perceived advantages of a hosted solution include lower capital expenditure, no maintenance or upgrade costs and a focus on core competencies. Also, implementation, management and troubleshooting are likely to be quicker and easier when using a hosted service since it is carried out by an experienced operator.
Both IP PABX and hosted VoIP solutions are based on a feature rich unified communications platform which drives operating costs down and improves efficiencies. As a result the adoption of IP telephony amongst small and medium sized enterprises is on the rise.
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