Premise-Based vs. Hosted PBX Comparison

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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 PBXUniVoiP
Premise Based PBXUniVoiP
Hardware & Phones*$6,000Included$15,000Included$20,000Included
MAC (Moves / Adds / Changes) + Support**$1,200Included$2,000Included$3,500Included
Voice trunks (FXO, PRI)***$140Included$300Included$350Included
Long distance Charges***$100Included$200Included$400Included
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 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 equipment 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 service, 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).