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hosted vs premise pbx security concernsBusiness communication is not a do it yourself job anymore. Innovation and the need for specialized equipment or systems make it important to rely on experts in communications. An expert telecom company can help you assess your needs and find the right fit for you.

One of the most common business communications system is PBX which comes in either on-premise or hosted. On-premise means your communications run through traditional phone cables, telephones and other equipment within your office. Hosted, on the other hand, uses an internet based system hosted at your service provider. Your phone system connects wirelessly using VoIP enabled phones.

What are the major differences between on-premise and hosted PBX?

Hosted PBX is designed to:

  • Be scalable to your business
  • Have clearer voice quality
  • Incorporate mobile phones 
  • Route calls to the appropriate phone within a network
  • Work seamlessly between several office locations
  • Be less expensive to install and make phone calls

On-Premise PBX is designed to:

  • Allow you to control your entire phone system
  • Use high quality phone equipment
  • Be reliable
  • Facilitate international calls
  • Be much more secure because it is closed


The case for hosted PBX is strong. But there are two strong reasons to choose on-premise which I will explore. One is security, the second international calling. Many businesses choose hosted PBX because of the scalability and integration of mobile phones. If your business is very concerned about security, Hosted PBX is internet based which creates several security issues.

Hackers can get into business phone systems to make international or premium calls at your expense. They get inside a PBX system through voicemail or the internet infrastructure of your entire system. They can also crack passwords into individual accounts. In contrast, on-premise systems, are very secure. They can be integrated within an intranet system so that your business can control and monitor the entire phone system.

International Calling

If you do any international business, you know that making international calls can be difficult. You must dial the correct country code along with the telephone number. Some calls get dropped. Charges can increase quickly. It can be very frustrating with so many barriers.

International calling is an important part of many businesses. Both on-premise PBX and hosted PBX can be used for international calls. However, on-premise PBX systems make international calling easier and is more secure.

Choosing hosted or on-premise PBX depends largely on the needs of your business. If cost and flexibility are your primary concern, Hosted PBX is your best option. If, instead international calling and security are your primary concern, choosing on-premise PBX is best. Contact Beacon Telecom about your PBX needs.