What is an On-Premise Phone System?
An on-premise phone system, also known as an on-site PBX (Private Branch Exchange), is a telephony solution where the hardware (typically a PBX server) and software that manage calls are physically located within your office or company’s data centre. Unlike cloud systems, which are hosted off-site by a service provider, an on-premise system is completely managed in-house.
Core Components:
- PBX server (hardware or virtual)
- VoIP phones or analog handsets
- Gateways to connect with PSTN or SIP trunks
- Internal network infrastructure
How Does an On-Premise Phone System Work?
- Call Management: All internal and external calls are routed through your on-site PBX server.
- Connectivity: The system can connect to the public telephone network via ISDN, PSTN, or SIP trunking for VoIP.
- Features: The PBX handles voicemail, call forwarding, conferencing, call recording, IVR menus, and more.
- User Extensions: Employees access phone lines through desktop handsets, softphones, or mobile apps linked to the on-premise system.
Top Benefits of On-Premise Phone Systems
- Full Control and Data Ownership: Your IT team manages the system, ensuring no third-party access.
- Lower Total Cost of Ownership (TCO): Long-term savings by avoiding recurring subscription fees.
- Independence from Internet Reliability: Operates even during internet outages.
- Customisation and Integration: Tailor the system to your needs with integration options.
- Scalability on Your Terms: Expand the system without upgrading to a higher subscription tier.
On-Premise vs Cloud Phone Systems: Side-by-Side
| Feature | On-Premise Phone System | Cloud Phone System |
|---|---|---|
| Location of Equipment | On-site (your premises) | Off-site (data centre) |
| Data Control | Full internal control | Managed by provider |
| Upfront Cost | Higher | Lower |
| Monthly Cost | Minimal | Subscription-based |
| Customisation | High | Limited |
| Scalability | Requires local changes | Easily scalable |
| Internet Dependency | Low or optional | High |
| Security | Internally managed | Depends on vendor |
| Compliance Ready? | Yes, with internal controls | Requires third-party checks |
How to Choose the Right On-Premise Phone System
- What’s your current call volume and user count?
- Do you have an internal IT team or provider?
- Do you need integration with existing tools?
- Are compliance and data privacy top priorities?
- Do you want a system that can grow with you?
