Cloud Hosted vs onsite PBX

which system is best for me?

Cloud Hosted

SIP service provider - Internet - onsite handsets

Cloud hosted is a relatively simple to implement solution and is most suited for:

high call volume business (call centres or estate agents)

Homeworkers

Small business (from 1 user to 5 users are the most cost effective)

Cloud Hosted has a good set of features such as voicemail to email, auto-attendant (dial 1 for ... dial 2 for...) online access and full setup via a web browser for follow me diverts, speed dials and setup of the system.

SIP service provider - Internet - onsite telephony server - handsets

Site Hosted PBX telephony server

On-site PBX telephony server will always remain the most cost effective solution for low contention/high handset quantity business.

On-Site PBX can be fully Virtual, such as 3CX or Panasonic NS-V which run on Virtual Server machines.

Fully IP & hybrid options are available, meaning that business can retain large numbers of legacy or analogue handsets or even non SIP lines, making this a truly flexible solution.

Click to dial from any number that can be highlighted on a windows PC (not limited to Chrome)

Call Queuing, Auto-attendant, voicemail to email, remote workers and softphones/virtual PC phones.

On-site hosted PBX will nearly always offer a greater feature-set than hosted, although the majority of users  rarely use all of the features available.

On-site equipment is generally the preferred choice for larger numbers of users with low-medium call volumes, such as printers, typical office, car dealer showrooms, warehouse & factory environment, schools etc.

On the far end of the scale, a typical secondary school may have 60+ extensions/users, but due to the limited number of calls being made in and out of the school, 4 or 6 IP trunk lines may be all that's required.  This can work out to be many hundreds of £££ cheaper than Cloud hosted PBX each month.

There are many flavours of Cloud Hosted  telephony available, most using the Broadsoft platform.

Names such as Gamma Horizon, Voicehost, Voiceflex & byphone are just a few of the many providers out there.

Take for example Gamma Horizon, one of our favourite providers for on-site hosted SIP lines, yet one of our least favourite for Cloud Hosted telephony.  Typically sold by many a wide boy salesman masquerading as a consultant, this offering pays big commissions  to the sales company yet is expensive & has no feature benefits over other offerings to the end user.

Gamma Horizon is typically £15-18 per user per month often with long term contracts (we often see 6 year lease contracts being signed for Gamma Horizon)

The Modern Telecom Cloud Hosted is in our opinion the easiest system to configure, and unlike most Hosted platforms, the user has access to all areas.  Many choose to have Modern either guide them through making changes or have Modern change the config for them, all part of the service we offer.

Our packages start from as low as £8 per user per month, for the majority of sites we are between £10-£12 depending on the features required on the system.

Handsets can be rented for as little as £3 per month over 36-months meaning a full system can be installed & setup with no initial outlay.

The Numbers Game - below are a few examples, nothing is 'typical' anymore, each business's requirements differ in so many ways, which is why Modern does not limit ourselves just to selling one solution as a fit all solution.

In may cases, cloud hosted is usually the simple, easy & cost-effective go-to solution for up to 7 users, the numbers work.

For medium sites with 10+ users, careful consideration is required, but the fuller featured onsite PBX often provides greater cost savings.

For large sites with 50+ users, on-site hosted PBX nearly always wins on the numbers & features game.  We have seen savings of £45,000+ over a 10-year cost of ownership assessment  of Cloud Hosted vs On-site Hosted.

3 user system

Cloud vs PBX

In this scenario we would usually recommend Cloud Hosted as the rental cost per month is the same either way, but cloud hosted has a lower equipment cost.

5 user system - typical call volume

Cloud vs PBX

Cloud typically £12 per user, plus £3 per user per month handset rental = £75 per month

onsite PBX based upon 3 simultaneous calls/line £45 per month plus £25 equipment rental over 60 months

10 user system - typical call volume

Cloud vs PBX

Cloud typically £12 per user, plus £3 per user per month handset rental = £150 per month

onsite PBX based upon 4 simultaneous calls/line £60 per month plus £35 equipment rental over 60 months

20 user system - typical call volume

Cloud vs PBX

Cloud typically £10 per user, plus £3 per user per month handset rental = £260 per month

onsite PBX based upon 6 simultaneous calls/line £90 per month plus £55 equipment rental over 60 months

Making the numbers work 

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