PBX Systems allow you to set up extensions, customer management systems, auto-attendants, call redirects and more to route calls within your organization. These operations are handled through a private branch exchange server (PBX). Virtual PBX services will setup, maintain, and host your exchange server off-site and you simply buy IP phones and an internet connection to interact with a web-based administration panel. Self-Hosted PBX brings the exchange server in-house (on premise). The benefits and trade-offs vary, but generally, virtual PBX services are for small businesses, and Self-Hosted PBX Systems are for medium and large businesses with heavy phone volume. You can use either analog phone lines or digital VoIP with Self-Host PBX. Virtual PBX services are limited to VoIP. PBXSystems.org focuses solely on the cost savings (typically 50%) associated with business-grade VoIP communications.
Pricing
The general consensus is that Virtual PBX services are ideal for small businesses with only 1-10 employees. With virtual PBX, you are sharing the 3rd party exchange server with other people, thereby, sharing hardware & maintenance costs. You must pin point your needs and carefully research your preferred virtual PBX provider. Costs are generally between $30-120/month for complete packages (minutes included). Extensions, may or may not be free depending on the provider. Your marginal cost will increase compared to self-hosted PBX systems as you add more users.
Virtual PBX systems will also provide you with SIP trunks & DIDs as opposed to securing your own. However, they may limit the number or channels or simultaneous calls your phone number can achieve (services vary).
For Self-Hosted PBX systems, you will need a server (with a PCI data port), configuration software (open source available), broadband connection (t1 handles 30 simultaneous calls), and potentially a firewall or gateway. VoIP rate plans are provided through ITSPs (Internet Telephony Service Providers) and will charge at least $15/SIP Trunk per month and $1/DID per month (rate plans and bundles will vary by provider). As a general rule you should reserve channels (DIDs etc.) for 1/3 of your employees. If you have 300 employees, not all of them will be on the phone at all times. Figure out a safe medium of simultaneous calls needed. Each service provider will handle terminology (SIPs, DID, Channels etc.) differently. Contact their support department with specific requirements/questions such as:
- “We need 20 simultaneous inbound calls to our toll free number and 2 simultaneous calls to our local number?”
- “We need roughly 5000 inbound minutes to our toll free number, 1000 outbound minutes to Australia, and 1200 outbound minutes our satellite office in Germany?”
- “If our phone systems go down, can we redirect incoming traffic to another phone?”
- “We have 4 different numbers, with ‘x’ number of staff handling ‘x’ simultaneous calls at each number?”
- “How do you handle, and what is charged to port numbers in and out of your system?”
Bottomline: If you need over 25 simultaneous calls (over 75 employees), consider a self-hosted PBX system. If you are unfamiliar with PBX systems, spend at least 1 month researching your options before purchasing equipment and services (ensure compatibility and features). You will need compatible phones, server/software, firewall, data/voice internet service, and SIP/DID providers.
Hardware
Many tout that self-hosted PBX hardware can cost as much as $60,000. However, research what your company needs, as many hardware providers can sell a complete PBX setup (compatible phones & server/software installed) for smaller businesses in the area of $2500.
Depending on your needs and volume, a business-grade pipeline may be as high as $600/month. For the most part, simultaneous calls are limited to your bandwidth (say 23 simultaneous channels/T1). Additionally, some SIP providers will require a static IP. With virtual PBX, companies may use a standard data internet connection which may not be practical for large support/sales centers. However, both IP-PBX systems allow you to share the same bandwidth for both data and voice. Be sure to adjust your QoS (Quality of Service) settings to prioritize voice to avoid dropped calls and poor sound quality.
For both systems you may use SIP enabled IP phones or softphones. You may also use a traditional phone, but you will need an ATA adapter or a gateway for VoIP service (check interoperability closely). Self-hosted systems may require an SIP firewall.
Other
With virtual PBX, you are using a server and service that is outside your control and you are committing yourself to security and reliability risk.
With self-hosted PBX, you select your ITSP (Internet Telephony Service Provider) for SIP trunks. You are not limited to one provider. You can setup up rules within Asterisk for example, to send certain calls to one ITSP, and other calls to another (maximize benefits of individual providers). Additionally, you can have back-up ITSPs in case one SIP provider goes down (you can set automatic error handling rules for this as well). Virtual PBX providers do not allow such configurability, although one would assume their internal backend processes have such backup mechanisms in place.
Many, not all, virtual PBX systems will limit the simultaneous calls per number. What is your technical ability? Do you have the time and ability to maintain a self-hosted PBX system? If you do, even with fewer users, a self-hosted PBX system could have cost savings. However, if you do not have time, use virtual PBX in the meantime according to a strict profit/savings analysis.
