SIP Trunking and Hosted PBX: What's the Difference?



If you want your company's phone system to be connected to the cloud and enjoy the benefits that VoIP has to offer,one of the many questions that will come up is: should I go with SIP trunking or hosted PBX?First things first, here's the most important difference between the two:

SIP trunking connects your current on-premise PBX equipment to the internet, while hosted PBX is a cloud-based phone system solution entirely handled by a third-party service provider.

Let's look at VoIP from every angle: implementation, business expansion, logistics, and finances to give a clear distinction between these two terms.


Call Quality


Everything happens through your internet connection when you choose a hosted PBX solution. Outage or unstable connectivity can be detrimental to your business. Your customers could see your business as unprofessional if they have an unsatisfactory experience when talking to your customer service representative.

However, SIP trunking leverages your current IP network to ensure high call quality. This is where SIP trunking is the most advantageous. It also gives you to have a backup connection or use a dedicated line that you can switch to if required.


Geographical Flexibility


Both SIP trunking and hosted PBX are good solutions for employees working remotely across a large geographical area. Hosted PBX does offer more apps available on multiple platforms (for example, PC, Mac, Android, and iOS). Your workforce can still use their phone service remotely without depending on your IT staff if any technical issue arises. Specific SIP trunking solutions offer solutions that allow employees to use their company's phone service remotely, too. However, it's dependent on the support and licensing of the PBX platform.


The Initial Setup Cost


To set up a hosted PBX, you'll need a broadband service, routers, and phones. You won't need PBX servers since your service provider will be looking after them. This way,the setup costs associated with hosted PBX are far less.



On the other hand, the costs of SIP trunking depends on the on-premise PBX equipment you currently have. Certain expenses can come up if you're purchasing new equipment after retiring the old. Note that your lowest-cost option will always be hosted PBX, especially if you have no PBX equipment as of yet.


Maintenance and Technical Expertise


You'll only have to maintain internal changes with hosted PBX. These include changing features or adding users. In SIP trunking, the servers are stored on your property. So, your own IT team has to look after the troubleshooting, updates, and upkeep.


Ongoing Costs


Typically, hosted PBX providers provide an array of packages and charge according to the number of features and the number of users. The greater the number of features and users, the higher the charges. However, SIP trunking services can charge per channel, meaning you can make one phone call on every channel at the same time. Typically, these are charged at a flat monthly rate.The subscription cost for both SIP trunking and hosted PBX turns out to be quite similar. Your cost will come down to your initial costs and current setup.


Size and Expansion of Your Company


Usually, small businesses make the best decision if they go the hosted PBX route. However, if you're expanding swiftly, that's not an ideal option. If your company has more than 20 employees, you'll benefit greatly from the VoIP security and flexibility that SIP trunking offers. This is also true if you're looking for expansion in the near future because SIP trunking offers unlimited connectivity, allowing you to connect with your customers using a single phone number.

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