Hosted PBX vs. SIP Trunking

Hosted PBX vs. SIP Trunking: What should I choose?

Once you decide to use a virtual communication system for your business, the next thing you should do is analyze the market options to choose the best one for you. There are certain things to keep in mind, including the different types of services and your budget. After that, you should try to find a reliable provider.

Each step seems relatively straightforward -and we can say it is as long as there is good research behind it, especially when it comes to the telephone service alternatives available in the market. Do you know which is the most convenient for your company? That’s what we will learn here. This article provides information on the two most popular business phone systems: SIP (session initiation protocol) trunking and hosted PBX (private branch exchange).

What’s a hosted PBX?

Also known as virtual PBX, a hosted private branch exchange is an Internet-based telephone system that allows businesses to share a network of multiple telephone lines. Usually, cloud-hosted PBX service providers have their own PBX network equipped with all the telephone functions that the user requires, including simultaneous calls, video conferencing, voicemail, automated attendant functions, and more.

To understand it better, we can say that hosted PBX users outsource the technical infrastructure and system maintenance to an external provider. Businesses use such modern and innovative virtual systems while leveraging the most convenient call center equipment and accessories.

Advantages of hosted PBX

Some of the benefits that Hosted PBX services can offer include:

  • Lower setup costs: You can reduce expenses by paying less for initial setups compared to other traditional phone services.
  • Minimum hardware requirements: Hosted PBX does not need excessive equipment or accessories. Therefore, you can save money on hardware and free up space in facilities that would be occupied by conventional telephone systems.
  • Scalable capabilities: Depending on the service provider you choose, you can scale your phone system as your needs grow.
  • Variety of functions: You can also ask your provider to add more communication functions to your system.

Disadvantages of hosted PBX

Like any other communication system, PBX has a few cons, including the following:

  • Lack of control over the system’s technology.
  • Low-quality connection potential.
  • Limitations in functions by not hosting its own communication system.

What is the SIP trunking?

SIP trunking is a system used to establish, transfer, and translate data through an Internet connection. Businesses often combine it with VoIP to create a connection that can be used for voice calls. With both technologies, you can add additional channels or lines, make multiple calls or video chats at the same time, and more.

The term “trunking” refers to the ability of a network to handle simultaneous calls. Actually, SIP trunking allows users to configure real-time audio or video sessions between two parties. The system can take phone call processes to a higher level.

Advantages of SIP trunking

Some SIP trunking services’ pros are:

  • Instant return on investment: Businesses can save a lot on calls once the system is installed.
  • Unification of communication channels: It allows you to keep complete control over the communication channels with telephone, unified written messages, and fax.
  • Greater mobility: With SIP trunking, you can access your communications at any time from anywhere using various devices.
  • Enhanced functionality: You can leverage your existing network for additional functionality by diversifying your communication with SIP trunking.

Disadvantages of SIP trunking

Like other phone systems, SIP trunking has some disadvantages, including:

  • Potential for interface congestion due to lack of monitoring or insufficient bandwidth.
  • Lack of information security when adequate security measures are not implemented.

Differences between hosted PBX and SIP trunking

SIP trunking services usually target companies that already have their IP PBX system. With compatible equipment, a hosted PBX can be upgraded when using SIP over VoIP. Choosing the best option depends on your current network and infrastructure configurations. Businesses looking to save on installation costs or any technical involvement should opt for the PBX. In turn, for those who expect to have more control over their network and have an adequate infrastructure to support it, SIP trunking is the best option.