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Are On-premise PBX Systems a Smart Investment? Find Out Here

Like most other digital solutions, your business telephone is like a long-term investment. It helps you communicate with your team more effectively and allows you to reach prospects for business development.

However, the world of telephony is ever-evolving as technology gets more advanced, and human beings get smarter.

Today's 'new' might be history tomorrow. Technologies like old personal computers (PC) and pagers have faded into obsoletion. With more breakthroughs in technology introduced to the world, it won't take long for more 'modern' technologies to become obsolete.

And it looks like on-premise PBX systems might be next!

When looking for phone systems, you might have come across the term "on-premise PBX" (or "on-prem PBX"). While it might seem ideal for small businesses as upfront costs are low and usable for peoples of all ages, you might want to hold your horses. As it seems like on-premise PBX might be the next technology to fade away.

What is an On-prem PBX System?

What is an On-prem PBX System?

If you have no idea what an on-prem PBX is, listen up.

Essentially, on-prem PBX systems are telephone systems that are installed in business locations. Calls are sent and received either through a traditional phone company or by Voice Over Internet Protocol (VoIP) with SIP Trunking.

Sounds pretty basic, right? It might be a little too basic for a business that wants to thrive in this technologically advanced workspace.

Are On-Prem Vendors Going Out of Business?

The world of work underwent a major transformation this year. While some vendors thrived, it looks like on-prem PBX vendors took a huge hit.

News of major on-prem PBX providers going out of business or stopping the manufacturing of on-prem hardware is not new. But what is worth noting is how global events like the COVID-19 pandemic caused significant upheavals in the world of telephony.

Health measures have prompted businesses to opt for portable telephony solutions like hosted and cloud-based systems to accommodate remote working. Reports show that business spending on on-prem systems have declined by at least 18%!

Disadvantages of an On-prem PBX System

Disadvantages of an On-prem PBX System

But what induced these shifts away from the on-prem PBX? Let's take a deeper look.

1. The Need for Physical Infrastructure

On-prem systems require physical infrastructure to receive and make calls. With spatial constraints, this might be problematic for small businesses.

Not only do these phones take up space in an office, but they also require regular maintenance.

Furthermore, this infrastructure must be disassembled and assembled again if a business decides to move to another location, which brings us to our next point.

2. These Systems are Immovable

Imagine following a business continuity plan where you work from home on alternate weeks; you would need to dismantle your office phone system and set it up again in your home office.

It's time-consuming and troublesome. In today's busy world of work, that's something businesses should not waste any time on.

What's the Next Best Alternative?

What's the Next Best Alternative?

Bidding farewell to the traditional office desk phone isn't easy. But businesses must embrace change to stay ahead of their competition.

Since on-prem PBX systems are not wise investments for businesses, what type of telephone solutions should they opt for?

If there is one system that has blossomed in this new normal, it is the cloud-based PBX. It is extremely portable. All you need to answer and receive calls is a stable internet connection. Since everything is virtual, there are neither hardware nor maintenance costs involved.

The benefits of cloud-based PBX systems are endless. And if you are thinking of getting one for your business, Velox has the perfect cloud-based system for all companies and firms looking to improve their communication systems.


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