ONNETBD IT Back to Articles
IP-PBX & Call Center

IP-PBX vs Cloud PBX vs Hosted PBX

Choosing the right PBX model impacts call quality, control, cost and future scalability. Let’s compare on-prem IP-PBX, cloud PBX and fully hosted PBX in simple language.

1. On-Premises IP-PBX

An on-prem IP-PBX is a physical or virtual server installed in your office or datacenter, running software like Asterisk, FreePBX or Issabel.

Pros:

  • Full control over dial plan, integrations and security
  • No per-extension license in many open-source systems
  • Can integrate deeply with LAN, local CRM and recording storage

Cons:

  • Requires in-house or outsourced technical skills
  • Hardware, power and cooling responsibility is yours
  • Remote branch connectivity needs VPN or SBC

2. Cloud PBX

Cloud PBX is a virtual PBX server running on public cloud infrastructure (AWS, GCP, etc.). You or your vendor manage the PBX software, while the provider manages hardware and uptime.

Pros:

  • No hardware at your office
  • Easier scalability (add more CPU/RAM as needed)
  • Accessible from multiple locations over the internet

Cons:

  • Requires good internet and QoS for voice
  • More complex security (public IP, SIP attacks, etc.)
  • Ongoing cloud costs based on resources

3. Hosted PBX

Hosted PBX is typically a service where the provider gives you extensions, numbers and features. You pay per extension/feature, and they manage all infrastructure.

Pros:

  • Very quick setup: just configure IP phones or softphones
  • No need to manage servers or PBX software
  • Support, updates and security handled by provider

Cons:

  • Less control over advanced dial plan and custom integrations
  • Monthly per-user cost can be higher for large teams
  • Migration away from the platform may be harder later

4. Which Model is Right for You?

It depends on your size, budget and technical comfort:

  • SMBs with few extensions: Hosted PBX is often easiest
  • Mid-size businesses: Cloud PBX with customizations can be a good balance
  • Large enterprises / IPTSPs: On-prem or carrier-grade cloud IP-PBX with full control

OnnetBD IT PBX & Call Center Solutions

We design and deploy:

  • On-prem IP-PBX (Asterisk, FreePBX, Issabel)
  • Cloud PBX instances with HA and monitoring
  • Hosted PBX platforms for IPTSPs and ITSPs
  • CRM/CTI integration, call recording, analytics and reporting

👉 Visit IPTSP, IP-PBX & Call Center or talk to our VoIP engineers about your telephony roadmap.