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Hosted PBX vs. On-Premise PBX

PBX – a computerized telephone system is typically used in business environments and switches calls for users using a set number of local lines coming into an office. It also allows users to share the local lines that are coming into the office.

Although new technology means allowing consumers to reach customer service centers and virtual call centers through many different means, The American Express 2011 Global Customer Service Barometer found that 90% of US consumers still prefer to resolve their service issues by telephone, rather than face-to-face interactions (75%) and web/e-mail (67%). However, without a PBX system in place, consumers or potential customers attempts to reach a business may be futile. All businesses should utilize a PBX system, in order to appear professional, not miss any calls, and have all calls automatically routed to the correct person or department.

So why utilize a hosted PBX rather than an on-premise PBX? Hosted PBX’s have many benefits, ranging from cutting costs, to freeing up staff time, to having higher customer satisfaction.

Cloud Based PBX

In a recent article by Osterman Research, it was shown that choosing a hosted PBX rather than an on-premise PBX could save a company over $20,000 in the first three years alone. Due to setup fees, hardware prices, in-house IT staff, and yearly maintenance, on-site PBX rapidly became the more expensive choice. However, with no setup fees and a set price for all three years, hosted PBX systems had no surprises when it came to pricing.

With a hosted PBX system, it’s completely unnecessary for employees to try and run the PBX system themselves. Employees would only be using their work phones when a phone call came directly to them, rather than trying to send their customers to the correct department instead of completing their own work.

Customer satisfaction would also be improved with a hosted PBX system because there would be no more annoying missed calls, or endless rings with no one ever on the other end. A hosted PBX would be there to answer the call, lowering frustration and increasing satisfaction.

David Wise

David Wise

Chief Executive Officer, Founder at AVOXI
David has more than 18 years of management experience in the telecommunications industry. A graduate of the Citadel, David worked as a Senior Account Executive with Intermedia Communications and later co-founded Rapid Link, a leading provider of International callback and VoIP. David then founded AVOXI in 2001with a focus on providing niche international call center markets with customized voice and data services. read more
David Wise
David Wise

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