Hosted VOIP vs. IP PBX: Which is Better for Your Business?


Pertaining to the confusing nature of the many technological terms of the industry, it gets difficult to convince clients on the utility of one over the other. Recently, with more people moving forward to adopting VoIP, the small and medium enterprises are still unable to make the decision.

While VoIP (Voice over the Internet Protocol) refers to the technology that allows making calls over a data network; recently, there has been a new introduction that extends the functions of VoIP to be more enterprise-friendly. It is named as IP PBX which stands for Internet Protocol Private Branch Exchange. It is a telephone system which allows switching calls between enterprise users on local lines while all users share a certain number of external phone lines over the data network.

IP PBX is a service that is hosted on a virtual environment and then sold as a subscription based service or platform. The traditional assumption that hosted IP PBXs are better alternatives for small to medium sized businesses does not always hold true.The scenario has changed and now you find IP PBXs that can scale up to thousands of users.

Service Χ
Hosted VoIP Providers have more resources than users Voice quality & connections are dependent on internet connectivity
Easy & fast picking & cancelling virtual numbers Limited flexibility of system
Easy moving of phone system Slower customization of features
Edge border controllers to help navigate routers Stability of provider may vary
Loss of internet has no effect Loss of internet results in loss of phone service
Patches & upgrades handled by provider Unstable fees – Can increase or can be charged for additional services
On-Premise PBX (IP PBX) Users can create, adjust or delete users Needs a professional provider to manage
Easy addition of new open source feature sets (no license fees) Expansions increase complications
No changing of current carrier Upgrades are done by technicians who may charge for the service
VoIP trunks save on calling costs Loss of power results in stoppage of business operations
Reduce expenses over time due to server ownership
No DIY on the part of customer


Assessing the pros and cons of both the phone services, you can be a better judge to be choosing the alternative that profits your business operations. If you are still not sure, you can contact Harry on 888 545 5346 or visit for additional information.

Net Activity, Inc. is a trusted provider of VoIP and IP PBX services in Cleveland and Akron, Ohio. With multiple solutions their team of experts indulge in accurate, time-bound and customer-oriented solutions for their clients.

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