Hosted vs. Epygi's On-Premise IP PBX Solutions

Helping your business choose what is best for their needs.

We know that you have many options when seeking to change your business' existing phone system, or maybe you are purchasing a system for the first time. The most critical decision you must make first is whether to purchase a PBX hosted externally by an outsourced service provider or an on-premise IP PBX system under your full control, managed either internally or by your Integrator. The next most important decision you will make is which PBX system to purchase and how to integrate the new system into your existing organization's IT and business practices. As an IP PBX and Gateway manufacturer, not only do we hope you choose our systems for your business's needs, but we want you to know why our products are superior to a hosted server.

Hosted IP PBX

  • Con: Higher ongoing service provider costs
  • Con: Dependent on broadband link. If a link is down, you cannot make calls
  • Con: It is difficult to change your hosted provider if you are dissatisfied
  • Con: Your provider may be slow to make even small changes
  • Con: May lack flexible customization with limited feature set availability
  • Con: Your service provider has the actual control - you don't
  • Con: Slowness to adapt and reluctance to adapt for a single customer
  • Con: Low reliability of service


Epygi On-Premise IP PBX

  • Pro: Lower ongoing total cost of ownership (TCO) with free software upgrades
  • Pro: No risk of fee increases
  • Pro: Advanced features available
  • Pro: Redundancy (Local PTSN trunks, alternate providers)
  • Pro: You have complete control and flexibility - you can even switch providers for PSTN access or mix-and-match and have the ability to move your service easily if necessary
  • Pro: An easy-to-use solution with local system management gives you a solution that matches your needs better than anything else can
  • Pro: You decide what handsets you want and you can add surveillance equipment as well
  • Pro: You can do what you want with your equipment - the ultimate flexibility
  • Pro: Relocation of your office's server is made easy with a compact, easy transportable and adaptable Epygi IP PBX
  • Pro: There is no concern of anyone listening to your calls

The most important factors to consider when deciding between a hosted vs. on-premise IP PBX include cost, customization, control, flexibility and user-friendliness.

On-premise systems typically require a larger upfront investment, while hosted services are paid for with more affordable monthly payments; however, it is important that you consider the long term operating costs of your overall cost equation. You must consider the total cost of ownership (TCO) of these systems, in addition to some other key variables, including the lifetime of the equipment as well as the ease-of-use and flexibility of the solution in question. Epygi's products provide you with a small upfront investment with no recurring software charges, which makes for an extremely low TCO. Epygi's systems are also highly energy efficient, thus continuing to save your business money.

To ensure voice quality, Epygi's on-premise IP PBX solutions will prioritize your data traffic. With hosted solutions, voice and data packets will often fight for preference, which leads to deteriorated voice quality. Hosted vendors may offer a Session Border Controller (SBC) device to help improve data quality, but this will considerably add to cost and complexity.

Customization is more attainable with an on-premise Epygi system, as an on-staff IT professional commonly oversees deployment and management, or an Epygi certified Integrator. Epygi's Call Routing Table is very flexible and provides many features that will assist your business with data management. With hosted systems, customization is often handled by the provider. While vendors may offer some customization at an elevated price, they are often unable to make unique adjustments for every customer.

Control is at the heart of the decision between choosing a hosted or on-premise solution. Some businesses prefer to keep control as much as possible internally. Other businesses want to outsource as much as possible in order to keep internal focus on core business - even if that decision ends up increasing costs at the expense of losing control of their server. Hosting can cause business to halt completely when issues arise because you are at the mercy of an outsourced vendor who has other clients to attend to. Epygi's on-premise solutions not only provides you control of your own server, but also allows you to fix any issues that may arise, instead of having to wait an extended amount of time for an external server to be attended to and fixed.

Choosing a new phone system solution can be daunting. The simplest approach is to review your companies' day-to-day business needs and how your phone system is a part of these operations. Record the important aspects and also consider other features that could benefit your business. Include all data when discussing with a hosted or on-premise provider to ensure they can satisfy your needs with their solution offering. We look forward to helping you during this process by providing you with a cost-effective and flexible IP PBX solution, extensive features and unbeatable support.

Reference(s): Hosted vs. On-Premise PBX Systems, Hosted PBX vs. PBX On-Premises: Pros & Cons