If you’ve decided to finally move your business into the arena of VoIP, you have likely already discovered that there are dozens of systems available to you. As with anything, it is important to be a savvy buyer when it comes to a VoIP system because your business communications will be constantly relying on this system. In this post, we will discuss a few factors that you should consider before purchasing a VoIP system and prepare you for your next step into adopting this efficient and beneficial technology for your business.

Two PBX Systems – Traditional & Hosted

The two types of phone systems available to you are the premise-based (onsite) system and the hosted (offsite) system. The conventional phone system is the premises-based PBX in which a switching system handles incoming and outgoing calls for your company. This setup requires a company to purchase equipment like servers and phones but allows for more control over equipment transfers and upgrades or additions.

A hosted PBX (offsite) is quickly becoming the more common option among modern businesses who recognize the advantages of this system over the traditional PBX system. Hosted PBX systems manage and route calls over an internet protocol (VoIP) rather than conventional phone lines. Adopting a hosted PBX means that companies do not have to buy servers or other hardware, but can set up their system using only “softphone” software on a computer and a microphone. While many vendors will allow companies to manage their system in a limited sense, the vendor will be responsible for updates and maintenance, not the company.

Understanding the two types of systems that are available to your company will help you to make an informed decision regarding a communication solution for your particular situation. While there are many different factors to consider when choosing what type of PBX system to adopt into your company, we have listed the most generally applicable factors to help you make an informed decision.

What Kind Of System Do You Need?


Traditional PBX – requires substantial upfront costs for equipment and regular maintenance

Hosted PBX (VoIP) – requires only a computer and mic, but includes an ongoing monthly fee

IT Training and Maintenance

Traditional PBX – requires dedicated IT personnel to oversee upgrades, additions, and issues

Hosted PBX (VoIP) – vendor handles all maintenance and upgrades, IT oversees implementation

Ownership & Control

Traditional PBX – owning all equipment means that you directly control all upgrades, additions and customization

Hosted PBX (VoIP) – vendor handles all equipment requirements, you have little to limited control over upgrades or maintenance

Remote Workers & Multiple Offices

Traditional PBX – multiple locations requires multiplied investment costs in equipment and IT personnel.

Hosted PBX (VoIP) – multiple locations and remote workers can access same calling features, requiring no equipment costs other than a mobile phone or computer and mic.


Traditional PBX – company expansion requires accounting for equipment and IT personnel costs at any new locations

Hosted PBX (VoIP) – company expansion can occur in any location with a computer, mic, and good network connection

FATPBX – Your VoIP Solutions Provider

We are proud to offer California businesses VoIP solutions that will positively transform their company’s internal and external communication. Contact us today to learn more about how VoIP technology