Pros And Cons Of A Hosted Private Branch Exchange

Years ago, your company may have been extremely small. Your telephone communication needs might have been minimal and the thought of investing thousands of dollars into a robust solution might have caused a chuckle. However, as your business grows, your staff grows along with it. Suddenly, you need to find a way to manage your inbound and outbound calls without needlessly hemorrhaging cash flow.

A Private Branch Exchange (or PBX system) is a flexible call routing technology. It allows you to handle multiple connections internally without incurring the cost of a leased line from your telephone service carrier for each employee. The problem is that this type of technology can be expensive for large companies. It is not uncommon for businesses with thousands of employees to invest a six-figure dollar amount.

Below, we'll take a close look at the pros and cons of using a hosted Private Branch Exchange for your company.

Advantages Of A Third Party Solution

One of the benefits of a third party solution is that it can handle a decentralized staff's communication needs more easily. If your employees are located in the same facility and rarely travel, this won't be an advantage. On the other hand, if your company has multiple branches, or your employees work from home or on the road, a hosted PBX is ideal. There is no need for multiple installations at each location. Instead, each person can connect directly to the third party software.

Another advantage is easier programming flexibility. Most hosted Private Branch Exchange systems allow the operator to configure settings online. What's more, those settings can be changed quickly. Contrast that with the inconvenience of having to schedule a specialist to configure an in-house system.

For budget-conscious companies, the most significant benefit is the enormous cost savings. First, there is no need to invest thousands of dollars in a conventional in-house system. Second, rather than having to spend valuable capital on regular equipment upgrades, a business can pass that responsibility to the third party PBX provider.

Potential Drawbacks

A hosted PBX system is not without limitations. For example, its ability to meet your needs is heavily dependent on your online access. As long as your connection is stable, you and your staff can access the phone service and make calls. But, if that connection is severed, so too, is your ability to use the service.

Another potential disadvantage is that companies using a hosted Private Branch Exchange need a healthy source of bandwidth. A T1 pipe or DSL line can definitely handle the load, but cable access may not be sufficient.

As your business continues to grow, it is critical that you leverage the most productive technologies for your communication needs. A Private Branch Exchange can be a valuable tool for most small and growing companies. If the initial investment and ongoing maintenance costs are beyond your budget, consider using a hosted PBX solution.

Lawrence Reaves checks into the best websites on the internet on Very Best Sites, and for some riotously fun entertainment, he reads Bizarre Bytes.

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