traditional pbx and hosted voip comparison

8/10/2019 Traditional PBX and Hosted VOIP Comparison

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Traditional PBX & Hosted VOIP

Technology: The Key Differences &

What They Mean For Your Business


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| 2Key Differences Between Hosted VOIP and Traditional PBX

CONTENTS

Summary .................................................................................... 3

Whats The Buzz About? ........................................................................................................ 3

What It Means For Businesses ............................................................................................. 3

What It Means For Employees .............................................................................................3

Introduction ............................................................................... 4

Hosted VOIP On-Premise PBX Comparison ................................................................4

Main Technological Differences ................................................. .................................................... ...... 4

Analog Signal vs. Data Packets ............................................................................................4

PBX Technology ....................................................................................................................... 5

Major PBX Components.................... ................................................... ................................................. 5

Specialized Applications ....................................................................................................... 5

PBX End-Of-Life (EOL) ........................................................................................................... 5

Hosted VOIP Technology .......... ........... .......... ........... ........... ..... 6

Cloud Computing ....................................................................................................................6

Broadband Networks .............................................................................................................. 6

Softswitch Technology .......................................................................................................... 7

Quality of Service (QoS) ......................................................................................................... 7

Cisco QoS Standards Evaluate: .................................................. .................................................... ...... 7

Private Network & Public Internet ...................................................................................... 7

Data Connectivity - Main Differences ................................................. ................................................. 8

Service Level Agreements & Private Network Connections ........................................................... 8

Maintenance & Obsolescence .............................................................................................. 8

Cost ComparisonPBX vs. Hosted VOIP .......... .......... ........... 9

Epiks Total Voice vs. Nortel PBX .........................................................................................9

Conclusion ................................................................................ 12

About Epik Networks...........................................................................................................................12


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SUMMARY

Summary

Whats The Buzz About?

Hosted Voice Over Internet Protocol (VOIP), also known as IP PBX, Virtual PBX or

Cloud VOIP, is the next big thing in business telecommunications. It is changing the

limitations o voice systems and bringing those changes to businesses o all sizes

and industries. In the last ew years alone, advanced VOIP systems have gone rom

an enterprise-only technology to an everyday reality or businesses across North

America. And, amazingly, o the millions o VOIP end-users, many are working on

comprehensive phone systems that arent even located in the same building as their

offices.

Afer decades o PBX systems, what has changed? The answer is at the root o the

technology, in the transition rom traditional telephony to cloud technology, and the

new possibilities that come with it.

What It Means For Businesses

The transition rom traditional PBX to Hosted VOIP is more than just a change in

provider, a new system model, or a new service. It is a new technology altogether,

capable o providing the voice services that people are amiliar with as well as more

than they ever considered. The advantages range rom cost savings and scalability to

enhanced eatures and mobile integration.

What It Means For Employees

Employees can experience an office phone network that meets their consumer

standards or ease-o-use, multiple device integration, and virtual collaboration.

Colleagues are able to track and communicate with each other, better manage

their interace and shortcuts, and, in a general sense, appreciate using a truly

contemporary system. Why should the office toolkit lag behind personal technology

or the average business?


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INTRODUCTION

Introduction

In less than 15 years, Inormation Technology has gone rom a costly, raw potential

to a widely accessible and refined toolkit. From sofware applications to mobile

devices to the sophisticated networks they inhabit, the private sector has undergone a

transormation driven by new technology.

This is perhaps nowhere more visible than in business telephony, where legacy

phone networks are quickly giving way to the IP and Cloud Revolution. As the

telecommunications industry introduces more mobile and multi-media capabilities

while streamlining operations and expenses, PBX networks become increasingly

outdated and limited.

Hosted VOIP On-Premise PBX Comparison

Main Technological Differences

Public Branch Exchange (PBX) Hosted Voice Over Internet Protocol (VOIP)

Uses traditional telephone receiver to convert voice into

analog or digital signalsUses VOIP sofware to convert voice into data packet s

Transmits analog signals via legacy landlinesTransmits data packets via an IP-enabled private

network or the Internet

Internally deployed & managed Hosted off-site / delivered via The Cloud

Minimal integration with computer applicationsAdvanced integration with computer and data

applications

Moves, Additions & Changes (MAC) require internal IT

developments

Moves, Additions & Changes (MAC) require request to

provider

Analog Signal vs. Data Packets

The undamental difference between VOIP and PBX technology is the method o

transmitting audio inormation. In both systems, the sounds entering the receiver

are converted into signals. A PBX uses either analog, transmitted in wave ormat or

digital signals, or digital phone equipment. VOIP uses data packets small pieces

o inormation encoded and transmitted via Internet Protocol (IP), the widely used

standard or encoding and transmitting data over the Internet or other IP-enabled

networks.


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PBX TECHNOLO GY

PBX Technology

A Private Branch Exchange (PBX) is designed to provide phone service to a group

o people without purchasing independent lines and eatures or each user rom a

telephone service provider. It acts like a Public Switched Phone Network (PSTN) on asmall scale, allowing organizations to use extensions and share a common connection

to the PSTN. When calls are made, they are interpreted and rerouted by the PBX to

another internal number via an extension or to an external number via the PSTN.

Many standard office phone eatures were developed on traditional PBX systems,

such as call routing, auto-attendants, user shortcuts, voicemail, ax-integration and

countless others. PBX are capable o connecting complex applications, like call centre

systems that enable large scale call management or Integrated Service or Digital

Network (ISDN) systems that enable digital data to travel over traditional landline

networks.

Major PBX Components

Telephone Trunk Line Multiple shared phone lines or each user

Computer Manages call switching, routing and other eatures

Maintenance Console

Specialized Applications (e.g. Call Center, ISDN, Conerence System,

Auto-Attendant)

Specialized Applications

In order to add new eatures to a PBX, additional hardware and sofware systems

have to be installed. A call centre application, or instance, has to be purchased rom

a vendor and integrated with the PBX by the office IT staff. Any specialized unction

requires a system addition, ollowed by ongoing updates and upgrades or

continual use.

PBX End-Of-Life (EOL)

PBX phone systems, like other on-premise networks, eventually reach their End-o-

Lie (EOL). This indicates when a particular model is no longer in production or when

support rom vendors and manuacturers has ended. In many cases, the system can

continue to operate as normal, becoming an issue only once repairs or updates are

required. While the EOL date is not always pressing, it marks the beginning o the

systems decline and the need to explore new options. EOL usually occurs between 5

and 10 years afer the products launch.


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HOSTED VOIP TECHNOLOGY

Hosted VOIP Technology

Voice Over Internet Protocol (VOIP) converts analog signals into data packets that can

be transmitted over the Internet or any other Internet Protocol (IP) enabled network.

Internet Protocol is the standardized method o communicating between locations

and structuring data over digital networks. Each packet is encoded with the receivers

address and instructions like other orms o data including emails or web pages. By

sending the voice data over the Internet or a dedicated network connection, the Public

Switch Telephone System (PSTN) and traditional phone carrier play a less significant

role in placing interoffice calls, inter-company calls or long distance calls.

Hosted VOIP uses the same principles o transmitting data, but combines other

breakthrough in communication technology Cloud Computer and Broadband

Networks to offer the services and applications in a very different way.

Cloud ComputingCloud Computing is a general term or a number o different services and applications

that can be delivered over the Internet instead o developed at the location o the user.

Many things today use cloud technology to offer sofware subscriptions, server space

or virtual networks. Cloud-based services rely on centralized servers that perorm a

particular set o unctions and then broadband network inrastructure that deliver it to

customer locations as a simplified service.

Broadband Networks

Broadband reers to high-speed and high-capacity data networks and data-handling

techniques. The development and prolieration o broadband has allowed residential

and commercial users to use increasingly complicated and data-laden services at

sustainable costs. Broadband connections, including cable, DSL and fiber optics,

allow Internet Service Providers to stream high-bandwidth voice data with ewer

quality issues. Hosted VOIP services combined with a fiber optic connection can offer

applications like video-conerencing or entire offices without sacrificing the quality o

service.


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SOFTSWITCH TECHNOLOGY

Softswitch Technology

An advanced sofware platorm, known as the sofswitch, unctions like a remote PBX

system. As the brains o the Hosted VOIP network, it handles call routing, switching,

advanced applications and enhanced eatures or the providers entire network.Through various built-in or add-on capabilities, the provider can offer on-demand and

customizable service.

The complexity o the sofswitch will largely determine the capabilities o the Hosted

VOIP service provider. Some providers opt or a basic sofswitch that provides

undamental phone services that a traditional PBX would, without the hassle o

managing it internally. Providers with advanced sofswitches have many more

eatures to offer clients, including upcoming technologies in the telecom market.

Quality of Service (QoS)

VOIP has struggled with quality issues since it first became commercially available inthe 1990s. It proved difficult to achieve the same audio quality and consistency with

data packets and IP-enabled packets, especially during peak traffic periods.

Since, VOIP developers and providers use VOIP-specific Quality o Service (QoS)

standards that measure the transmission o high-bandwidth applications in order to

better manage network perormance. QoS standards are used to shape and prioritize

data to increase, predict and guarantee network perormance.

Cisco QoS Standards Evaluate:

Bandwidth Requirements

Packet Classification

Queuing

Traffic Shaping

Data Compression

Frame Relay

Private Network & Public Internet

Connection quality directly influences Hosted VOIP voice quality. One reason is that

voice data is high-bandwidth, meaning that it can disrupt a standard connection

i it not managed properly or i there are too many users. Private connections also

influence service quality by providing voice data with a distinct pathway between calls

instead o traveling various pathways across the Internet.


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MAINTENANCE AND OBSOLESCENCE

Data Connectivity - Main Differences

VOIP over Private Network VOIP over Public Internet

Guaranteed Voice Quality Standard Voice Quality

Controlled Data Routes Data Travels Unpredictably

Uptime Guarantee Best Effort Service

Service Level Agreements & Private Network Connections

Voice quality and network uptime can only be guaranteed i the Hosted VOIP service is

deployed via a Private Network. The added control o the private connection makes it

possible to guarantee perormance standards that match the reliability o traditional

PBX phones. Hosted VOIP services offered over a generic best effort connection can

only be as reliable as that network. A best effort service increases the chances o

network and voice disruptions or organizations with many users, continual usage or

data-driven applications.

Maintenance & Obsolescence

Hosted VOIP providers can absorb maintenance and update expenses or all o their

customers without incurring major costs. Issues can be detected and resolved offsite

rom the cloud acility, just as updates and upgrades can be ocused on the sofswitch.

Changes made to the central network in turn effect client networks, providing

simplified network maintenance, continually updates and system-wide upgrades. This

is ofen an included part o the service, alleviating operational expenses and the risk o

system obsolescence.


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COST COMPARISON

Cost ComparisonPBX vs. Hosted VOIP

The savings associated with Hosted VOIP services come directly rom the advantages

o the technology; every aspect o an office network can be treated as a ser vice,

allowing the provider to absorb operational and maintenance costs by managing

a single cloud network or countless clients. The client can deploy up-to-date

unctionality without the risk and effort o investing in an advanced system.

The results are reduced capital expenditure and operational expenditure. Depending

on the businesses current system and particular needs, savings can fluctuate

between the two, but are ofen possible in both areas. PBX systems, by comparison,

ofen demand large upront investments as well as ongoing maintenance in the orm

o IT efforts or contracts with PBX vendors. In most cases this translates to more

investment and attention or less unctionality.

Epiks Total Voice vs. Nortel PBXA comparison o Epiks Hosted VOIP service and a clients current Nortel PBX. The

Hosted VOIP service creates 18% savings over 36 months, with the possibility to easily

adjust services and applications along the way.

Figure 1


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COST COMPARISON

In this case, the savings result rom bundling the phone service with enterprise

Internet services rom the same provider, and monthly VOIP long distance ees. There

would be a similar pattern with other voice applications, like conerencing or enhanced

eatures that would be more cost-effective and easier to manage with the Hosted VOIP

system (Figure 1.1).

Figure 1.1

The monthly savings would actually be significantly more as maintenance and update

costs are not always known in advance (an estimated 15-20%) but are includes in

Hosted VOIP services since the system is managed offsite (Figure 1.2).

Figure 1.2


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COST COMPARISON

As demonstrated below, businesses that preer to purchase the onsite equipment

routers, switches and IP phones can pay more upront instead o a monthly ee.

This means that businesses that take on the capital expense will still see significant

savings. Large capital expense is still compensated or by the monthly operational

savings o Hosted VOIP, saving the client 27% over 36 months (Figure 2).

Figure 2

In this example, it is clear how a specific voice applications (in this case conerencing),

long distance and maintenance add up to significant savings. Each o these isinherently more cost-effective than the PBX equivalent because o the underlying

technology.

Figure 3


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| 12K Diff B t H t d VOIP d T diti l PBX

COST COMPARISON

Conclusion

Comparing traditional PBX systems to Hosted VOIP technology is becoming more

and more o an Old vs. New story. The core technological differences and the drop-

off in uture potential put them in practically different categories altogether. Heavily

invested in PBX systems and general office complacency make it difficult to transition

out o traditional telephony, even as employees continue to adopt and develop work

behaviours in relation to high-tech personal and consumer technologies.

The prolieration o VOIP, cloud computing and broadband networks have made

advanced IP telephony widely available and affordable, even more so than standard

PBX networks. Businesses looking or a new system should reconsider what comes to

mind when they think business phone system, because or many companies it is the

last barrier between their operation and todays telecommunications.

About Epik Networks

Epik Networks is the industry leader in advanced data and communication services,

offering turnkey solutions or almost a decade. Through centralized Broadsof

sofswitches and high-speed fiber-optic connections, Epik Networks provides

companies o all sizes with highly customized telecommunications solutions that are

both affordable and completely reliable.

We take care o everything rom the hardware and sofware, to ongoing maintenance.

You will never worry about your voice services again. In addition to all the equipment,

Epik Networks offers one easy-to-understand bill.

Let us show you why over 8000 users have made the choice to use Epik Networks as

their service provider.

Feel ree to call us at 1-866-353-9333. Epik sales consultants are standing by to help

guide you to make the best possible decisions or all your telecommunication needs.

Epik Networks Inc. Head Office

80 Bloor St West, Suite 503

Toronto, Ontario, M5S 2V1

Toll Free: 1-866-353-9333

Phone: 416-921-7000

Fax: 416-855-763

epiknetworks.com

[email protected]

traditional pbx and hosted voip comparison

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