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Premise-Based vs. Hosted PBX Comparison

A hosted Internet protocol private branch exchange (IP PBX System) system can provide an easy way for small to medium businesses (SMBs) to move to voice over Internet protocol (VoIP) and get a new range of features and capabilities. While there are several IP PBX options, hosted applications are usually quicker and cheaper to install.

Regardless of the size of your company, a VoIP Phone system solution will optimize operations and monthly savings. In fact, the greater the number of users, the greater savings you will realize with a managed phone system. Not only from a cost point of view but also from an operational workflow.

TCO Comparison
Premise-Based vs. Hosted PBX

10 users

25 users

50 users

Premise Based PBX

Premise Based PBX UniVoiP
Premise Based PBX UniVoiP
Hardware & Phones* $6,000 Included $15,000 Included $20,000 Included
Maintenance** $750 Included $1,000 Included $2,500 Included
Upgrades** Included $500 Included $1,000 Included
MAC (Moves / Adds / Changes) + Support** $1,200 Included $2,000 Included $3,500 Included
Voice trunks (FXO, PRI)*** $140 Included $300 Included $350 Included
Long distance Charges*** $100 Included $200 Included $400 Included
Fax*** $65 Included $130 Included $195 Included
TOTAL 3 YEARS COST $22,830 $11,241 $49,680 $27,954 $75,020 $46,809





Hardware & Phones (Up-Front Costs and Installation)

An on-premises PBX is inherently more expensive during implementation due to the purchase of the IP PBX and related systems, handsets, softphones, training, and gateways/routers. With an IP PBX system, there is more sunken systems cost up front. A cloud-based phone system for your business has a cost advantage in overall up-front costs.

PBX System Ongoing Equipment Maintenance and Upgrades

Services are generally seen as more expensive than equipment, but often it is forgotten that after the initial PBX purchase for an on-premises solution, the costs of hardware and services include maintenance contracts and upgrades. Operations and administration hold the biggest cost savings for a cloud-based phone system over an on-site PBX. With on-premises PBX Systems, there are maintenance and support contracts for system upgrades and helpdesk access, in addition to employee resources dedicated to system administration, inventory management, security management, and technical support in-house. With a cloud-based PBX system, these operations are built into the service, freeing staff up to focus on other parts of the business. The service fees for a cloud-based system are the key cost factor, while eliminating the cost of phone lines, hardware and software upgrades, and the redeployment of IT staff to manage on-site PBX assets.

MAC (Moves, Adds & Changes)

A business choosing an on-premise phone system must either pay a third party “interconnect” or reseller firm that is certified by the appropriate equipment vendors to do Move Add and Changes or pay to have members of its own in-house IT team appropriately trained and qualified as well as ensure ongoing training to maintain necessary vendor certifications.

Voice trunks (Local and long distance charges)

Cloud based solutions allow a business to use existing data connections or provision a dedicated IP connection, which can offer significant cost savings over dedicated PSTN phone lines (or SIP trunks), and local and long distance charges. With a customer-owned IP PBX, phone lines and local and long distance charges can make up 30%-45% of the overall cost to own and operate the phone system; while monthly charges been un-predictable. A cloud-based helps alleviate this cost burden and provides fixed monthly charges including all local and long distance calls.


With its ease of use, immediacy of delivery, and universal accessibility, faxing is here to stay. However, manual faxing is fraught with issues and inefficiencies. Cloud based Electronic fax will Improve your productivity by receiving and sending unlimited faxes from your email and save thousands of dollars every year (no more consumable costs like toner/ink, paper, no more employee labor and frustration and more getting charged for a fax line and telco costs per page).

Outage Capabilities

Hosted PBX Systems remain online even during an outage. An on-premise system becomes unavailable during a loss of power, which leaves customers unable to reach agents and automated services. Our cloud PBX systems stay online due to our highly available (HA) data centers, which offer full geographical redundancy.

Staff can also take advantage of our softphone capabilities for iOS and Android-based smartphones to continue communicating with colleagues and consumers. With our cloud phone systems, we port their business number so the process of switching between mobile and IP phones is seamless.

Customer Support

On-premise PBX systems can rely on either your in-house IT team or a third party for support. With our cloud PBX systems, we provide 24-hour, seven-days-a-week support. Our team is U.S.-based with extensive experience in assisting customers with their hosted PBX. This ensures that your experience is a positive one and delivers a resolution fast.

Service Level Agreement (SLA)

On-premise and hosted PBX solutions both offer SLAs, however many differ in their guarantees. Our SLA provides a 99.99 percent uptime guarantee. The available target time is equal to 99.99 percent of the time in each calendar month, which assures you that your cloud phone system for business will limit potential downtime and losses.

Enhance Communication With a Hosted PBX System

As a Communication as a Service (CaaS) provider, our team at UniVoIP delivers cloud-based business phone solutions that promote effective and seamless communication across tablets, smartphones and desktops to enhance your communication among staff and customers while delivering a strong return on investment. For more than 12 years, we’ve delivered results as a leader in Cloud Communications and VoIP technology.

Learn more about our cloud PBX systems by contacting our knowledgeable team today.


A unified communication and collaboration environment that scales with your business needs.

Free your teams to communicate from anywhere, on any device. OfficeConnect™ provides unified voice, conferencing, messaging, fax, and more. Our state-of-the-art VoIP phones are far more flexible and cost-effective than legacy on-premises systems.

Keep your projects moving and synchronize your teams with best-in-class audio and video conferencing made simple.

Trust that your discussions with consumers, as well as team members, remain secure and private. We encrypt all voice packets—from both remote and on-site phones—using SRTP with 128-bit AES encryption. SRTP is compliant with both the federal standards for FIPS 140-2 Certified Encryption and the Department of Defense’s PKI Digital Certificate.