Advantages of an On-Premise PBX Phone System

If you’re a small business owner looking for a new phone system, you have two basic options: hosted or on-premise. We’ll describe the advantages of each in detail in this post. But first, let’s talk about what they are.

Hosted PBX

A hosted PBX phone system is one where all the equipment is owned and maintained by the service provider. You choose your plan, and the provider does everything else — installing the handsets, software and hardware and keeping everything updated for you (for an additional fee).

On-Premise PBX

With this type of system, you buy the equipment and handle installation, maintenance, troubleshooting and upgrades yourself. These systems can be purchased upfront or leased on monthly terms.

The PBX phone system is a telephone system that handles telephone call switching and routing. The traditional PBX phone system is located in the customer premise.

The on-premise traditional PBX system has been around for ages and is the most common type of PBX phone system. It is also referred to as Private Branch Exchange (PBX) systems. It comes with a lot of benefits that are still relevant today for businesses that opt for it, which we will discuss below.


On-premise PBX phone systems can be fully customized according to your needs and preferences. Since you have complete control over the on-site hardware, you can easily edit and make changes whenever you want to meet your requirements. You can also install extra features if you need more functionality from your phone system, such as call recording or auto attendant.

Hardware ownership

In some cases, you may want to own all the hardware and technology involved in the operation of your business rather than lease it from an external provider or use a cloud-based service that is hosted by a third-party company. You will be responsible for all upgrades, maintenance, security, and other services related to the on-site equipment so that you have full control over it.


The most innovative new features in the PBX world come from startups rather than established players like Cisco and Mitel. Those startups tend to be focused on software rather than hardware, so they’re more likely to offer innovation via a cloud service than an on-premise product.


It’s much easier to scale up a cloud service than an on-premise installation as demand for more services increases. With an on-premise system, you have to plan for peak capacity and that means buying extra hardware that may not be used all the time.

See more advantages of on-premise PBX phone system here –