The key to a good business is good communication. Part of this is the ability to get a hold of employees when they are needed. Traditionally, businesses would rely on a dedicated phone system stored in-house. Could the option of Hosted PBX, help with your businesses communication needs? Should businesses use the cloud to handle business communication? Here’s why your company should consider the switch to Hosted PBX Solution.

Why do Businesses use Traditional PBX?

A traditional PBX is currently the option for many larger businesses. Here the PBX is stored at the same location as the business. Calls are handled through a traditional phone company. That means that if the power goes out, and your business can still make calls, communication can still continue.

The initial investment is costly, however, the monthly cost may be less overall. A Traditional PBX is also great if your company has a dedicated IT team that can make sure servers are up and running. Also, the system is yours. Your business may need to rely on a technician if something goes wrong. However, you’ll more likely know when a tech worked directly with your system. Best of all, when service technician initially installs your PBX, they can tell you what the top connection speed is at your exact location.

The High Price of a Traditional PBX Solution

Having a PBX on-site, also known as a traditional PBX, used to be a necessary evil, and still is! It requires a larger investment on the behalf of the company and a higher initial higher cost. Not to mention, a technician would be necessary to install it. Should the server need maintenance, a technician would need to install updates or patch software. This could lead to additional fees.

88% of customers prefer good customer service over innovation (source)

Having an on-premise PBX also hurts customer service. A study by Harris Interactive, on behalf of Verint Systems, found that 88% of customers found good customer service is more important than if a company had a hot, new product. Customer loyalty is a valuable commodity. If a customer is on hold too long they will likely get frustrated with your company.

Worst of all, an on-premise PBX has a single point of failure. This means that if your PBX system goes down, your company may not be able to receive phone calls. When it comes to business, it’s important to make sure your business’s systems are still operational. During Hurricane Sandy, many SMBs were able to keep running thanks to hosted PBX solutions.

What is Hosted PBX?

Hosted PBX is a cloud based solution for business communication. A cloud based phone system is one where the provider is responsible for housing the Private Branch Exchange (PBX). Providers are also responsible for maintaining and updating servers that run the phone system in the first place.

Traditionally, businesses would rely on a dedicated phone system that would require the server to be hosted on-site. Connected to this PBX were the telephones for the office. This worked as long as employees were all working from one office.

The Advantages of Hosted PBX

First of all Hosted PBX come with lower costs with regards to equipment and set-up. This makes it much easier if a business needs to relocate, a hosted PBX makes a transition much simpler. Not to mention, if an update or patch needs to be applied, it can be done by the provider. There is no need to have an outside technician come to the office.

Most importantly, a Hosted PBX solution improves communication. This is because it provides your workforce with unified communications features, mobile integration, and the ability to get to connect with employees faster. According to Information Week, 62% of companies say that employee communication has improved since switching to a Hosted PBX.  Also, the loss of Internet or catastrophic event has less effect on your business’s operations. Unlike an on-premises PBX, it isn’t a single point of failure. A Hosted PBX relies on safeguards and the ability to run on back up power sources.

One disadvantage is the need for a dedicated broadband connection. If your location isn’t wired for high-speed traffic, you’re PBX will hardly live up to its full potential.

Switch to a Hosted PBX

On August 8th, IVR Technology will provide a new Hosted PBX solution. The new platform will be equipped with a full suite of features to help your business. Our solutions will help meet your needs. To stay updated on the news, follow us on Twitter here.