Cloud PBX vs On-site PBX: Which is 200% Profitable? & Why Callersuite!

Cloud PBX vs On Site PBX

Are you thinking about upgrading your business phone system, but not sure whether to opt for cloud PBX or On-Site PBX? Well, there’s no need to worry as we’ve got you covered. Today we will be talking all about the difference between an on-site and a cloud-based PBX, and which one is a better option for businesses.

Read down below to find out more.

What is a Cloud-based PBX?

A cloud-based PBX also called a hosted PBX is an IP-based PBX service that runs over the internet. When it comes to cloud PBX, there’s no need for any hardware installation at your location to use the service.

Sound is converted into data packets via the handsets when your staff places or answers a call. These packets to the hosted PBX provider over the internet. The provider establishes a clear calling path between both parties. The data packets are converted back into sound signals when the destination of the signal is reached. All of this is done within milliseconds.

Cloud PBX comes with several features that can come in very handy in a business and office environment, such as; call recording, call forwarding, IVR, and more. To run a cloud PBX, all you need is an internet connection.

Cloud technology means the cloud services and data can be accessed from any device connected to the Internet. Hence, you can use any internet-compatible device to make and receive calls including desk phones, cell phones, laptops, tablets, and more.

What is On-Site PBX?

On-site PBX is also known as the IP-PBX phone system. Unlike cloud-based PBX, for an on-site PBX, equipment needs to be fixed at a proper location such as at a phone closet, or a computer equipment room. The signaling is done with an IP phone to the IP-PBX server using LAN.

Calls can go through a traditional telephone company as well as VoIP using SIP trunking. The system is connected to the traditional phone service supplier using gateway cards. The provider can be the one that already provides service, though a SIP trunk can be configured for use with an Internet service telephone provider (ISTP).

Cloud PBX vs On-site PBX: Which one is better for your Business?

There are many differences between a cloud PBX and an On-site PBX. To choose the right option for your business, you must be aware of the features of both. Let’s look at what makes cloud-based and on-site PBX different.

cloud pbx vs onsite pbx

Cloud-based PBX for Business:

  • The initial hardware and set-up costs are minimal
  • Picking and canceling virtual numbers is easy and fast
  • It is easier to move a phone system
  • Low monthly service cost
  • There is no need for maintenance

On-Site PBX for Businesses:

  • Initial hardware and set-up costs are higher
  • Ongoing maintenance costs are usually higher
  • Lower monthly cost once expenses are covered
  • Option to SIP trunk to achieve lower price calls

The major difference between both is that an on-site PBX requires additional hardware, whereas cloud-based does not. Also, there is almost no maintenance cost for cloud-based PBX, whereas for on-site PBX you might need to spend on maintenance every few months.

Cloud-PBX is a great option for businesses because it provides flexibility and growth, whereas a traditional PBX usually comes with hard-coded dialing prefixes and restricts long-distance calls. Furthermore, cloud-based PBX offers many more features as compared to on-site PBX.

Another difference between the two is the cost. As compared to on-site PBX, a Cloud-based PBX saves you up to 60% of the cost, especially if your provider provides international call packages. Also, since the servers for cloud-based PBX are maintained by providers when new software is launched for the cloud PBX system, it can be integrated into the system easily without the need for a subscriber to make server changes.

The only concern that comes with cloud-based PBX is that you are required to have a reliable internet service to make use of it. However, there’s no need to worry as long as you are connected to a stable internet connection.

All in all, a cloud-based PBX is a much more flexible, affordable, and scalable option. It is a great choice for small and medium-sized businesses. Cloud PBX systems are going upwards in the telecommunications sector, and every day more and more companies are switching to this option to avail the numerous benefits it offers.

Caller Suite: The best Cloud-Based PBX Provider for Small Businesses

Now that we are aware of how a cloud-based PBX works, and what its advantages are, let’s discuss the importance of having a reliable cloud-based PBX provider. Each cloud-based PBX provider offers its own set of features and pricing rates, so you must choose the one that suits your company the most.

Caller Suite not only offers the best features available, but is also one of the most affordable cloud-based PBX and IVR systems in the market these days.

With its services available in more than 80 countries, Caller Suite is the best option for small and medium businesses. We make it much easier to place and receive international calls, allowing you to expand your business overseas without any hassle.  You can sign up for our free 15-day trial today. Our features include:

  • Local & Toll-Free Numbers
  • Call Routing & Forwarding
  • Custom greetings
  • Call Recording
  • IVR
  • Call Queues
  • Softphone
  • Mobile PBX
  • Voicemail
  • SMS & FAX
  • 24/7 customer support and more.


You have to look at your needs today and tomorrow while weighing the pros and cons of a Cloud PBX. You need to ask yourself where you want your business to be in the next year or two. A cloud-based system can help your business in multiple ways and can help you form a good brand reputation in the long run. Sign-up with Caller Suite today to avail the best cloud PBX experience for your business.

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