Why The On-Premise PBX System Is Now A Fish Out of Water

Mar 20, 2023

The traditional on-premise PBX systems used to be the backbone of business communications for decades. However, with the increase of cloud telephony services and the rising need for remote work, on-premise Private Branch Exchange systems are becoming obsolete.

It has been a while since businesses have started using cloud telephony services in various departments. Whether for marketing, sales, or engaging customers. There are always business-oriented telephonic systems designed to address the direction and volume of calls being handled.

Advancements have led us to a point where these systems are no longer even hardware. They all exist over a Wide Area Network (WAN) or on the internet. In this blog, we’ll explore why cloud telephony is the future and some of the reasons why the on-premise PBX system is now a fish out of water.

Why Cloud Telephony Is The Future

Using cloud services and computation is the most advanced attempt yet to optimize and automate the processes of business communication. Updating all systems to the cloud makes a difference by leaps and bounds. Using clunky on-premise infrastructure has difficulties associated with it. On the other hand, there is a lot that cloud telephony solutions offer to businesses of all sizes.

Cloud telephony services are the future for many reasons:

  • Flexibility
  • Cost-Effectiveness
  • Mobility
  • Easy Integration
  • Analytics

The Drawbacks of A Physical Infrastructure

We agree that PBX systems have been extremely successful for business communications for several years, but there is a long list of drawbacks attached to them. Some of these are:

Initial Cost: Establishing a PBX is extremely expensive, especially for limited-budget businesses or small companies. The cost of buying hardware, installation, and configuration is high.

Maintenance: Physical systems like PBX requires maintenance on regular basis. This is not only expensive but is time-consuming as well. The businesses also need to hire professionals to regularly update & maintaining the system.

Limited Scalability: On-premise PBX systems are extremely hard to scale up or scale down. This can a huge problem for mid-sized businesses which experience rapid growth and quick downsizing.

Limited Features: Traditional PBX systems don’t offer advanced features such as video conferencing, cloud-based solutions, mobile integration, etc., which modern-day businesses require.

Dependence on Physical Infrastructure: PBX systems require a fixed physical infrastructure setup with hardware and cabling. This is not only hard to maintain and upgrade but is also not convenient for remote working employees.

Vulnerability To Power Outages: The old-fashioned PBX systems stop functioning during power failure unless they are connected to a power supply backup.

Cloud Communication

The Simple Feasibility of The Cloud

A Cloud-based system is the least dependent on any one party for it to carry out its functions. Where only a single telecom operator can be used with one PBX box, the Cloud-based system involves management from several. This introduces the possibility of multiple backup options. The uptime of such a system is obviously much higher, therefore; state-of-the-art load balancers over the cloud ensure an uptime of 99.6%. Not bad, right?

For example: call data records are only kept for some time since data is stored locally. The lifetime storage cost is quite high. Over the Cloud, calls are recorded & the data is backed up automatically at a minimal cost.

This is just one benefit of cloud telephony services. The advantages of cloud-based services are also the reasons why PBX systems are not a fish out of water. These include:

Cost: As we discussed above, the installation, maintenance, and establishment of an on-premise PBX system are costly and also require dedicated hardware, software, and IT professionals as well. On the other hand, cloud-based solutions are not only affordable but require less time to set up, and do not require any special hardware or professional, hence saving expenses.

Scalability: As mentioned above, traditional PBX systems are very hard to scale up or scale down. These systems are designed to handle a specific number of phone lines and a fixed number of users. In contrast, cloud telephony services come with solutions that can easily scale up or down as per the business requirement without any additional hardware or software.

Flexibility: On-premise PBX systems are fixed to a physical location which is not convenient if an employee need to work from a different location or remotely. Cloud-based solutions, however, allow employees to access the system from anywhere just with the help of an internet connection, making them flexible, agile, and responsive.

Features: Outdated on-premise PBX systems lack in providing modern features like video conferencing, mobile integration, instant messaging, and more which have become an integral part of businesses in today’s time, where remote working is a norm. Cloud-based services have these advantages, giving businesses access to the latest technology.

Security: PBX systems are vulnerable to security breaches like hacking and malware attacks. These threats can compromise business data and leave the system open for further exploitation. On the other hand, cloud telephony services have robust security measures including multi-factor authentication and encryption, making them more secure.

In Conclusion

The on-premise PBX systems are the talk of the past. In recent times, businesses have understood the importance of cloud-based solutions and are highly implementing them in their businesses. The advantages of cloud telephony solutions make the perfect pitch why any business should invest in them and should avoid going to PBX systems.

If you also wish to change your old on-premise PBX system with cloud-based solutions, connect with us at the earliest.

Written By:  Manna Khare


PBX System
Cloud Telephony
Voice Products
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