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On March 14th, 2024

What’s the Difference Between SIP Trunking vs Hosted Cloud PBX?

Companies can utilize a variety of tools to keep in touch with their client base and team members. For today’s telecommunications, SIP trunking and Cloud PBX are two types of technology for making and receiving phone calls. The solutions might sound similar, but they actually work in different ways.

The Quick Version of How SIP Trunking Works

SIP (Session Initiation Protocol) trunking is a method of sending voice and other communications over the internet rather than traditional telephone lines. This often leads to some nice cost savings for companies. Utilizing SIP allows you to establish a direct connection between your company’s private branch exchange (PBX) and an Internet telephony service provider (ITSP). You’re basically making virtual phone lines. From there, you can use your internet connection to make phone calls to anyone with a phone number.

It can be a convenient solution for many companies. But it’s important to note that SIP trunking requires you to have your own PBX phone system on site. You’re not just working with an internet connection and software. Having your PBX software or hardware is what lets you manage the call routing and other features for your communications. Once set up with SIP trunking, though, you aren’t limited to voice calls. These systems are also used for video and messaging applications too.

What You Get with a Hosted PBX Solution

Whereas SIP trunking depends on companies having onsite equipment, going with a hosted Cloud PBX solution lets you have the power of a virtual phone system through a third-party provider. This replaces the need for on-premises PBX hardware. Your call routing, and other features like voicemail, are all handled by the provider’s data center servers.

Companies using Cloud PBX setups are able to connect to the system using their own IP phones, software-based phones, or mobile apps. You can even upgrade your Cloud PBX solution to include useful management tools like automated attendants, call forwarding, and more. There’s a lot of opportunity for scalability and flexibility for companies too. For example, you can adjust the numbers of users or modify your features without requiring big hardware updates. You simply let your provider know that you want to change your plan. Then you’ll be ready to go!

What’s Better for Your Business—SIP Trunking or the Cloud?

When deciding between SIP trunking and Cloud PBX, there are usually three criteria to keep in mind. To start, there’s your infrastructure. SIP trunking requires an on-premises PBX system to manage your calls, while Cloud PBX operates entirely in the cloud, so you don’t need any on-site hardware specifically related to your call management.

Another thing to consider is the level of maintenance required. With SIP trunking, companies are responsible for managing and maintaining their PBX hardware or software themselves. If you’re going with a hosted solution, though, the service provider will take care of those updates and maintenance needs on your behalf.

There are also differences with scalability for these solutions. Cloud PBX is typically more user-friendly for scalability because providers make it easy to adjust the number of users or features for each account. Depending on your growth trajectory, SIP trunking might need hardware upgrades to accommodate the influx of new users.

If your company already has an onsite PBX system that’s been working great, then upgrading to a new SIP trunking option might be the way to streamline your phone system and manage costs vs your traditional phone lines. Then again, hosted solutions with Cloud PBX are also convenient ways to limit your infrastructure investments while staying up-to-date with how today’s communications technology is changing.

No matter which system you’re leaning toward, know that our team at Enhanced Telecommunications and Data can help you design and implement your company’s new solution! It all starts with a consultation. Just send us a message to get started, and we’ll reach out to answer your questions!

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