Difference between SIP Trunking and Hosted PBX Services

SIP Trunking

Session Initiation Protocol trunking, also known as SIP trunking, enhances the quality and efficiency of your communications. Capable of also providing your business with considerable cost-savings, SIP trunking eliminates the need for expensive Primary Rate Interfaces (PRIs) ISDN Basic Rate Interfaces (BRIs) and local Public Switched Telephone Network gateways.

In contrast to traditional telephony, wherein groups of physical wires would be delivered from the provider to a business, SIP trunking allows you to substitute conventional fixed Public Switched Telephone Network lines with PSTN connectivity via the Internet.

In addition to placing telephone calls, SIP trunking also supports multiple forms of real-time unified communication on the same connection, such as conferencing, whiteboarding, inter-office file transferring, and instant messaging.

Hosted PBX

Let’s start by quickly defining what a PBX is; a PBX, or Private Branch exchange, is where an incoming call can be routed to different extensions. Due to advancements in modern technology, PBXs are no longer required to be on-site, thus the birth of the hosted PBX.

To put it simply, a hosted PBX offers advanced call routing that is hosted by a provider that handles the technical side. One of the biggest benefits of employing a hosted PBX system is the cost-savings it provides due to the fact that there are no required hardware purchases or upgrades. In addition, hosted PBX services make advanced business technology available for even small businesses.

SIP Trunking vs. Hosted PBX

What it really comes down to is the size of your business.

Smaller companies with 20 employees or less should opt for a hosted PBX solution, as it offers traditional PBX features that are managed off-site by a Voice over IP provider.

Larger enterprises and those with 20 or more employees are more likely to benefit from an SIP trunking service. However, SIP trunking requires you to have your own IP PBX equipment, which can be expensive.

It’s important to note that each provider has implemented their own version of what they believe each service should offer, which can lead to certain misconceptions and confusion in the marketplace.

Are you looking to employ a hosted PBX or SIP trunking service for your business? Give one of our skilled, professional account managers a call today! We partner with the leading providers of telecommunications services in order to find you the ideal solution to meet your unique needs at the best available price.