Most businesses these days are opting for a VoIP (Voice over Internet Protocol) Business Phone System. This is because of the many benefits VoIP offers, such as cost savings, advanced features, and scalability. However, it’s important to understand that VoIP is an umbrella term; i.e., there are many different types of VoIP systems. Two of the most common options are SIP Trunking and Hosted PBX. It can sometimes prove challenging knowing which to opt for. Both work by placing calls over the internet rather than by using traditional copper wires. However, there are differences that make one system more valuable to certain businesses than others. Here’s what you should know so that you can make an informed decision:
What Is Hosted PBX?
Hosted PBX (Private Branch Exchange) essentially offers classic phone calling features without having the need for on-site equipment. It typically comes with do not disturb, call conferencing, call forwarding, etc. The start up costs are very small since your provider owns and maintains all of the hardware. It is also easy to scale with a Hosted PBX, making small, growing businesses ideal candidates for this type of system.
What Is SIP Trunking?
One of the biggest benefits of SIP Trunking is that oftentimes businesses can continue to use their existing phones and take advantage of SIP benefits. For example, if you have non-IP or digital PBX phones you can still use them but significantly lower your monthly phone bill by placing calls via the internet rather than the PSTN. This is partly because your voice and data are carried on the same line. SIP Trunking has most of the same benefits as Hosted PBX, but efficiency and quality is often vastly improved because you are removing primary interfaces. Oftentimes larger companies use SIP Trunking, but it is equally beneficial to smaller companies.