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SIP Trunking versus Hosted PBX


Though increasing numbers of businesses are considering a switch to more cost effective telecommunications platforms like VoIP technology, they don’t always understand the different services offered under the VoIP umbrella. Many business owners hear terms like SIP trunking and hosted PBX batted about and may not know what they mean. The following information will explain.

SIP Trunking

SIP, or session initiation protocol, trunking is ideal for businesses with twenty or more employees. With this type of system, the internet replaces the traditional trunk (a line/link that carries multiple signals at once, connecting centers and nodes in a communications system). This allows both fixed and mobile users communicate effectively all over the world. This service is extremely cost effective for larger businesses because it combines data into a single transmission line. In effect, each feature doesn’t require its own separate media making for a more streamlined system. Because SIP trunking offers the same features as a PBX hosted system, it’s highly popular among mid-size to larger businesses. Big businesses also love the flexibility and scalability of SIP trunking.

Hosted PBX

A hosted PBX, or private branch exchange, system is preferable for smaller businesses with less than twenty employees. This system doesn’t require all system equipment to be stationed on site. More conveniently, a service provider handles the technical aspects of this system and ensures that calls are routed to their appropriate extensions. One of the main issues with a hosted PBX system, however, security. This platform leaves more ports open, which can result in a security breach. Even so, many businesses don’t want the technical headache of dealing with on-site equipment, and working with a good provider has many perks for businesses that want to experience VoIP features without purchasing extra equipment.

VoIP technology, whatever type of service you choose, is definitely a smart direction for businesses to take with its wide range of features and cost-effective solutions. However, businesses still need to consider which platform is best for them. If you’re a small operation and don’t want the burden of more in-house equipment, look more closely at a hosted PBX model. If you want improved security and more flexibility, SIP trunking might be the better option for you.

Tammy Giannone
About the Author
Tammy was born and raised in Central Florida. Her passion for technology is only rivaled by fishing, Single Malt Scotch and fine cigars and not necessarily in that order. She is Vice President of Ideacom Solutions Group which has been providing telecom solutions in Central Florida since 1958. Tammy’s areas of expertise includes VOIP hardware and services, Telecom Expense Management and Carrier Services. During her 30+ years in telecom she’s been a member of several Dealer Council’s and Product Advisory Committees for global service providers and manufacturers. She can be reached at Connect with Tammy on LinkedIn.

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