On-Premise vs. Cloud PBX

Irrespective of the solution you choose, most VoIP products involve a software-based PBX that
is purchased separately, then loaded on a server (also purchased separately) or a PBX device
with the solution already installed before purchase. So, the next decision is where to put it.
There are basically two options; you can host it On-Premise also known as “on-site” or you can
contract with a hosting company to store it in the Cloud. Be mindful that not all VoIP PBX
devices with the solution pre-installed can be hosted in the Cloud, some are on-site only, so
make sure you understand what yours can do before you purchase.

Before we get too carried away with all the terms and acronyms, let’s start with basics, like
“VoIP”. VoIP stands for Voice over Internet Protocol, meaning the call or “voice” is transmitted
over a data network which requires an internet connection and SIP Trunks. SIP stands for
Session Initiation Protocol, which is a standard communications protocol language that allows
phones and other telephony devices to “talk” to each other. A session is when two parties and
their respective devices or systems are actually “talking” or connected. SIP Trunking Service
provides you with the same dial tone service as a traditional landline connection, given one big
difference. Instead of a physical phone line connecting you, it’s a virtual phone line or Sip Trunk
between you and the other party. The connection is completed using Fiber, Ethernet over
copper, T1 or Cable Modem to connect your PBX to the internet, hence the use of the term,
Voice over Internet Protocol.

Hosting your VoIP On-Premise or on-site means the solution (software) is physically housed on
a centralized server or a dedicated PBX device at your business location. Whatever your
industry, one thing to consider when choosing the on-premise hosting option is creating a space
where you can place a rack for your server, instead of stacking the equipment on a desk or the
floor. A server is a centralized computer that manages access to your network. A rack is
specially designed to house this computer (and other equipment) allowing gaps between units
to help with air circulation (think of a stereo cabinet). Instead of guessing, it’s a good idea to
know the dimensions of your server if you utilize a rack. Many racks come with adjustable
brackets and mounting kits that are handy as long as there is enough depth to house the server.
While many companies have a dedicated server room or telco (telecommunications) closet for
their networking, security or VoIP system, it’s unnecessary if the space chosen is well ventilated.
Even if you don’t have a dedicated closet or room, try to avoid placing the server in high-traffic
areas or it could get knocked over, kicked or someone could spill liquid on it. No one wants to
invest thousands in a new phone system for it to go down in minutes because of a spilled cup of
coffee. Further, the server can be located in any corner or desk, but it must also be cooled. The
in-build fan of the server is not enough to keep the air around the unit cooled, only the unit itself.
If you can carve out a niche, the space should be measured properly to accommodate all the
equipment. If you stick a server in a small, even dedicated closet with no cool air moving, your
server won’t last as long as it should, and you’ll be on the market for another system sooner
than later. You’ll probably be unhappy. You can choose a closet in the back of the building, as
long as it remains cool, dry and well-ventilated to house the server in its optimal environment.
Another consideration is managing your wires and labeling everything, and I mean everything. If
you’ve never walked into a server room, let me be the first to say, it looks like alien technology
with wires and ports everywhere and without labels, the only one who knows what goes to what,
is the one who put it all together. The responsibility for maintaining the equipment could change,
and it usually does. Plus, if something goes wrong and you are forced to hire someone else to
fix it, they won’t know how to navigate the mess of wires, without a map. Labels are the way to
go.

You don’t have the space and you don’t want to create or maintain one, so what now? You could go with a Cloud PBX. Cloud-based means the solution, whether it’s VoIP PBX software on
a server or dedicated device, is hosted in a secure server room/facility off-site. Every business
owner has concerns about security when shopping for a new phone system. You may think it’s
more secure for your VoIP PBX to be at your place of business and if you have the proper
environment and systems in place, as explained previously, you could be right. When you are
deciding whether to pay for hosting services or to self-host, one thing to consider is redundancy.
Redundancy goes a long way toward protecting your business continuity. If your phones go
down, your business goes down. Hosting facilities typically have server farms with redundancies
built-in. Examples may include redundant internet access (at least 2 sources) and generators on
the roof, should the area flood or in the event of an electricity outage. Server rooms should be
meticulously controlled for temperature. If one server creates a lot of heat, imagine hundreds or
thousands. Server farms or rooms will have industrial grade air conditioning units and fans to
maintain the best environment for servers. Hosting companies/facilities also have dedicated
staffing for maintaining the servers and racks, wiring, the server rooms, the cooling equipment,
vacuums to prevent dust build-up, and fans that help to maintain optimum temperature, with
additional staff for securing the physical access to the server. Many hosting companies will offer
walking tours of their server farms and facilities. It’s a recommended step in the decision-making
process so you can see and experience the secure access and physical environment. If you
have extra security concerns and can employ a dedicated staff with networking expertise,
redundant internet access, electricity back-up like generators, and a secure, server-friendly
environment for your networking equipment, then perhaps you’re covered. If not, paying a
hosting company to do all of that for you is a secure alternative.