Hosted PBX Service Vs Premise-Based IP PBX System Lifecycle

General Article

Understanding The PBX System Lifecycle

On average, a traditional lifecycle of premise-based PBX will lie between 7-10 years of use.

Traditionally, PBX technology only saw minor improvements within this time span. Even as early as a decade ago, upgrading your PBX system had more to do with replacing worn out products and receiving incremental improvements in the service you received.

However, PBX technology now evolves at a much faster rate than ever before, largely due to the development of all-software VoIP-based systems. While you can still own the same PBX system for 7-10 years, your system’s technology will now reach obsolescence faster than ever due to technological advancement, and not technological breakdown.

The Benefits of VoIP Hosted PBX

Hosted PBX systems offer a wide range of significant improvements over traditional PBX, including the following:

  • Scalability. It’s both easier and cheaper to scale a VoIP system than a traditional PBX system, removing a major limitation on the growth of your organization. Most Hosted PBX Service Providers will allow you to increase or decrease the number of extensions or features depending on your organization’s needs.
  • Flexibility. VoIP hosted PBX allows your organization to use a fully connected outside customer service and sales team working from any location, whether you hire new remote staff or allow your existing employees to work from home.
  • Reduced Overhead. With little upfront cash VoIP hosted PBX also provides a cost-saving service in the long term- especially if you aim to grow your organization.
  • Exceptional Price-Performance. Hosted VoIP services are packed with advanced PBX features at a fraction of the cost of Traditional PBX licensing and hardware.

Why Some Organizations Haven’t Upgraded their PBX Systems

Unfortunately, plenty of companies have delayed taking advantage of the benefits of VoIP hosted PBX. The reasons behind these delays are more due to historical circumstances than any problem with VoIP services.

First, remember that the traditional PBX lifecycle is 7-10 years long. Keep in mind the average organization will hold off upgrading their infrastructure as long as possible, even in the best of economic climates. That means most organizations upgrade their PBX system every 10 years, barring a massive potential crises necessitating a technological upgrade.

The average organization last upgraded their PBX system in the years 1999-2000 to safeguard their telephony systems against the Y2K scare. By the year 2000 VoIP hosted PBX wasn’t a viable solution for most organizations, so most organizations upgraded their system to a slightly improved traditional PBX system.

By upgrading their PBX systems around the year 2000, most companies found themselves due for their next upgrade in either 2009 or 2010- right in the middle of the worst economic climate the country’s seen in decades.

The Recession prevented many organizations from upgrading their PBX services. And some of those organizations who did upgrade their PBX services decided to continue to use traditional PBX services and opted out of upgrading to acquiring a superior (yet more familiar) VoIP hosted PBX system.

Making the Decision to Upgrade to VoIP hosted PBX

PBX technology may have remained largely stagnate for many years, but it has made a quantum leap over the last decade. What has your organization lost by using an obsolete and inefficient system? What will your organization gain by upgrading to the newest, most beneficial telephony technology?

Rather than waiting for the “perfect” time to upgrade your phone service, it’s wiser to upgrade to VoIP hosted PBX as soon as it’s practical to no longer deny your organization the infrastructure growth and improvements offered by this superior technology.