Table of Contents
With the continued rise of VoIP and voice apps, it’s no wonder that many small businesses are jumping on board to save costs. But with so many options available, how do you ultimately decide between hosted PBX vs SIP trunking? Join us as we break down everything you need to know about these two types of services for your business!
“The hosted sip providers” are a different type of phone service provider. The difference between the two is that hosted sip providers offer features such as call forwarding, voicemail, and more. These services are typically cheaper than traditional phone companies.
To set up a company phone system, you must first determine if a hosted PBX or SIP trunking is preferable for your purposes. Both are connected to the public switched telephone network (PTSN), provide dependable phone service, and include services like voicemail and an auto-attendant. Cloud-based hosted PBX solutions, on the other hand, demand lower upfront expenses and long-term resources, while SIP trunking requires greater resources.
The preferable business solution will then be determined by the use case, but in general, it is as follows:
- Hosted PBX: For small organizations that want a phone system with voice, video, and text capabilities but don’t want to deal with the burden of maintaining on-premise servers, hosted PBX is a better option. In our guide to the top hosted PBX providers, you can learn more about the finest solutions.
- SIP trunking: For bigger firms with in-house information technology (IT) teams, SIP trunking is a better option for maintaining on-site equipment.
What if I told you that Both systems need some setup and may have more functionality than you require, particularly if your small staff is primarily distributed or you just need to service one or two individuals. Another option to explore in this scenario is to use a virtual phone number instead. In our tutorial on voice-over-internet-protocol (VoIP) vs. virtual phone systems, you may learn more about this alternative.
At a Glance: Hosted PBX vs. SIP Trunking
Continue reading to discover more about how the various technologies stack up:
Hosted PBX is the best option for scalability.
Owners add lines and users to a web-based administrator interface when their small firm expands from a few workers to 20 or more. Hosted PBX is perfect for businesses that hire seasonal employees and is a must-have for totally remote businesses. In addition, adding, deleting, or adjusting features does not need technical knowledge.
Scaling on-premise PBX and SIP trunking services, on the other hand, may need extra infrastructure and IT personnel. Furthermore, company owners are restricted by the capabilities of their on-site servers, which means that if you wish to grow, you’ll need to invest in bigger systems right now. SIP trunking is often scalable for big organizations since they already have equipment and IT employees, thus growth may be less expensive.
Because it doesn’t need on-site equipment or IT workers, hosted PBX is more scalable for small to mid-sized organizations. Both systems, however, enable call center phone systems.
Hosted PBX is the most cost-effective option.
While hosted PBX and SIP trunking have comparable monthly subscription rates, cloud-based PBX solutions don’t need any additional equipment or installation expenditures. Many voice-over-internet-protocol (VoIP) providers, such as RingCentral and 88, require a monthly per-user price, which may range from $12 to $59.99.
Small company owners need to choose a package, choose or transfer a phone number, and begin utilizing their new phone system. Desktop users are linked to the phone system through Internet protocol (IP) phones or softphones, although workers may use any internet-connected device.
SIP trunking, on the other hand, necessitates a considerable upfront expenditure for on-premise PBX installation, with one PBX box costing over $1,000. After that, you’ll need to join up with a SIP trunking provider, such as Twilio, to get the software you’ll require for your phone services.
Other services may demand a monthly membership, whereas Twilio charges per-minute rates. You may also need additional electrical or internet connections, as well as IT help, to complete the installation of your phone system.
Large companies may save money by utilizing a restricted number of lines for hundreds of workers rather than paying a per-user fee for hosted PBX services. It is, nevertheless, necessary to consider the costs of maintenance, upgrades, and repairs. Companies without an on-site IT workforce may need third-party technical assistance to upgrade gear, investigate an outage, and conduct routine maintenance.
Winner: SIP trunking installation might be prohibitively expensive unless you already have a PBX system. Hosted PBX is less expensive to set up, operate, and provides competitive per-user prices for most small enterprises.
Hosted PBX is the best option for mobility.
Both hosted PBX and SIP trunking include user-friendly mobile applications that operate on a variety of platforms, including Android and iOS smartphones and tablets, as well as desktops and laptops. Users using hosted PBX and SIP trunking may also access and customize features remotely via web-based administration portals.
Cloud-based services, on the other hand, will accompany you to a new office location without causing any disturbance. To answer calls from any workplace with an internet connection, just use or install the VoIP program on business or personal devices.
Because SIP trunking requires on-premise equipment, transferring equipment and related components to a new office is required. This may cause a brief interruption in service as you install and configure the servers at the new location.
Because hosted PBX does not need on-site equipment, it is simpler to relocate to a new office building or close a physical office.
Best for Ease of Installation & Use: Hosted PBX
Hosted PBX phone solutions win hands down when it comes to getting your new small company phone system up and operating. Within minutes, you may join up, set up, and begin utilizing your phone services. Furthermore, web-based admin panels enable supervisors to customize access restrictions and features, whilst mobile applications allow workers to access information from any internet-connected device.
However, the functionality and simplicity of use of mobile apps vary depending on the VoIP or virtual phone number provider. Grasshopper, for example, is recognized for providing ultra-simple mobile applications that are ideal for less tech-savvy customers, but RingCentral’s sophisticated setups may take longer to set up. Additionally, companies who wish to utilize their current landline desk phones may need to install analog telephone converters (ATAs).
On-site SIP trunking systems, like hosted PBX, provide user-friendly admin interfaces and mobile applications. User permissions and call control features may be configured easily in the office or remotely. Users may utilize the mobile applications to access all services and make calls from any internet-connected device. SIP trunking, on the other hand, is different since the initial setup requires a lot of resources unless you already have a PBX on-site.
Winner: Hosted PBX beats SIP trunking because a new service can be up and operating in minutes rather than the hours or days it takes to set up a new on-premise PBX system with SIP trunking.
Best for Maintenance & IT Support: Hosted PBX
Many small firms choose hosted PBX over SIP trunking since it does not need continuous maintenance. Your VoIP provider, on the other hand, is in charge of server maintenance, which includes patching. Simply contact your provider’s customer support number or file a problem report if you need assistance.
Furthermore, the supplier is in charge of any service issues or interruptions. In most situations, software updates are automated, so you’re always utilizing the most recent version when you launch your softphone app.
Your firm, on the other side, is responsible for SIP trunking maintenance and support. When the phones on your workers’ desks stop working, they contact your IT department. Firmware patching is also the responsibility of your in-house staff. Third-party software, on the other hand, may be updated automatically.
Winner: Because hosted PBX requires practically little maintenance and your supplier provides customer assistance, it is a good alternative for small businesses.
SIP Trunking is the best option for customization.
Companies prefer SIP trunking for a variety of reasons, including total control over their servers, data, and phone features. Rather of paying a VoIP provider for things you don’t use, your IT staff tailors your system to your unique needs.
SIP trunking keeps your data on your own servers, but a hosted PBX solution sends all information to other servers and data centers. SIP trunking is the ideal alternative for businesses who want complete security control and the freedom to customize a system.
The finest hosted PBX providers provide a variety of plans to choose from, and some even offer add-on features or a la carte alternatives. So, if you want call recording, you’ll have to buy a plan that includes it, even if it comes with a slew of other fancy but unneeded features. Furthermore, although many VoIP companies are HIPAA-compliant, your data is still sent to a distant server rather than being kept on-site.
SIP trunking is the obvious winner since it enables company owners to completely customize their phone system, from features to security settings.
Best Hosted PBX & SIP Trunking Alternatives
Although most small companies benefit from a hosted PBX system, and bigger firms benefit from SIP trunking, there are situations when you may choose a different option. Consider the following solutions for solopreneurs, entirely remote teams, or rural firms without high-speed internet:
- Traditional phone service may be more dependable than hosted PBX or SIP trunking if you operate in a distant location with a sporadic or sluggish internet connection.
- Virtual phone number: Solopreneurs and small teams may select a solution that routes calls to their current mobile phone, obviating the need for a full-fledged VoIP system. Based on cost, functionality, and usability, choose the top virtual phone number providers.
- Business mobile phones: Business cell phones can keep teams linked if you don’t require a new service for your company.
Most Commonly Asked Questions (FAQs)
What is the difference between hosted PBX & SIP trunking?
The fundamental distinction between hosted PBX and SIP trunking is that the servers for your hosted PBX phone system are maintained by a third-party provider, but SIP trunking needs on-premise gear, including a PBX box.
Is a PBX required for SIP?
Yes, SIP requires cloud-hosted or on-premise PBX systems. This is due to the fact that VoIP services combine the PBX and SIP trunking components into a single service, while an on-premises PBX box needs a SIP trunk to connect phones to the VoIP service.
What equipment do I need for a PBX system?
Although no specific hardware is required for a cloud-hosted PBX system, you may buy optional IP phones from your VoIP provider or authorized resellers. A PBX box, desk phones, and other hardware and connections are required for an on-site PBX system. PBX equipment is available from local contractors, third-party equipment vendors, and shops like Telco Depot.
Conclusion
Hosted PBX and SIP trunking are popular, dependable technologies that provide sophisticated capabilities like virtual receptionists and automated call allocation to businesses. Cloud-hosted PBX services, on the other hand, are less expensive and simpler to setup and manage for small firms without existing PBX equipment.
Check out RingCentral if you’re looking for a simple and scalable VoIP platform. It includes interactive voice response (IVR) and tiered attendants, as well as sophisticated call management capabilities.
A “sip pbx meaning” is a type of phone system that uses Internet Protocol (IP) and the Session Initiation Protocol (SIP) to provide voice, video, and instant messaging services. It’s typically used in small businesses.
Related Tags
- hosted pbx vs voip
- hosted pbx providers
- pbx sip server
- cloud sip
- cloud-based sip trunking
