It’s Time to Replace Your On-premises PBX

    IT: “We need to replace the PBX.”
    You: “What’s a PBX?”

    For many, the question of replacing a private branch exchange (PBX) phone system is met with confusion and uncertainty. But migrating your PBX to the cloud can result in annual savings as high as 76%, not to mention improving collaboration and communication across your organization.

    While on-premises PBX systems have been a staple in the corporate world for decades, they don’t get a lot of attention. But sadly, on-premises PBX are a technological dead-end, with many hardware vendors shutting down their PBX product lines—creating a number of challenges and risks. But this also creates some big opportunities to save money.


    What is a PBX?

    An on-premises PBX sits in a “phone closet” somewhere and make internal and external calling possible through a network of shared analog phone lines. The PBX switches calls between phones on local lines while allowing you to share a limited number of external phone lines. This setup makes features like call centers and individual phone numbers possible.

    While running PBX systems on-premises was once cutting-edge, the internet and the cloud have made it a thing of the past. These older systems are plagued by operational costs and the looming threat of discontinued support and unavailable replacement parts.


    Why build two networks when you can have one?

    If you have a PBX in your building today that doesn’t know how to talk to the internet, you have wires going to the analog telephone network in addition to your internet connection—so you have twice the infrastructure to manage. Moving your PBX to the cloud means that everything in your office will connect to the same network. The result is that you have only one network to manage and support.

    Even before you migrate your PBX, losing internet connectivity can shut your office down. While consolidated on one network, it’s a great time to add a redundant backup internet connection using a mobile network so you are always up and running.


    Before: On-premises PBX

    Diagram of on-premises PBX

    After: PBX Migrated to Cloud

    Diagram of PBX migrated to cloud


    People communicate differently today

    People simply communicate more today than they did in the past—so you might be hitting the limit of what your system can handle. This is especially true if you experience seasonal spikes in call volumes. This lack of scalability can lead to poor customer experiences, missed opportunities, and ultimately, a negative impact on your business.

    On-premises PBX were designed at a time when remote work simply didn’t exist. But that’s far from the case today. Over the last several years, all organizations have adapted to remote and hybrid work models in some way, and you need a calling system that supports this new reality. Replacing your on-premises PBX with one that can dynamically adapt to these changing needs has become a top priority. Flexibility is no longer a luxury; it's a necessity.

    Hopefully by now you agree that running a PBX on-premises doesn’t make financial sense and introduces a number of risks.

    Moving to the cloud is the right solution

    The answer, like so many things, is that it depends on your exact needs. We’ll get to that, but broadly speaking, the best results come from moving your PBX to the cloud and integrating (or adopting) collaboration tools like Microsoft Teams, Cisco Webex, or others.

    By migrating to a cloud-based platform, you can bid farewell to the operational costs associated with maintaining and managing on-premises systems. The cloud eliminates the need for expensive hardware upgrades, software updates, and specialized technical support, as these responsibilities are seamlessly handled by the service provider. This shift not only reduces costs but also frees up time and money that you can use in other places.

    We can save you money

    Switching to cloud-based solutions like these can help you meet your cost optimization, flexibility, and reliability goals. In fact, many of our customers report annual savings as high as 76% by eliminating the hardware, software, and tech-support costs of running a PBX on premises.

    Moreover, cloud-based solutions offer excellent scalability, so you can effortlessly adapt to fluctuating call volumes and evolving workforce dynamics. With the ability to scale up or down on demand, you can ensure you have the necessary resources to meet peak demands without incurring unnecessary expenses during periods of lower activity.

    annual savings

    Based on one-year costs of 100 phones with on-premises PBX, including hardware maintenance, software licensing, trunk lines, and IT personnel.

    On-premises PBX replacement savings

    Diagram of On-premises PBX replacement savings with Fusion Connect


    A 99% solution isn’t a 100% solution

    Many of our customers need features that don’t come with the standard package offered by many cloud products. That’s why Fusion Connect has solutions for adding specialized functionality to create a system that meets all of your needs. We can help you create call centers, record calls for compliance, and even add texting (SMS/MMS) to your toolbox of communication channels.

    Like any technology, there are always edge cases to manage. Believe it or not, there are still several places in nearly every office where devices that can’t use an internet connection lurk in the shadows. Any guesses? Well, you might not have thought about the phone tucked away in your elevator, but if you ever get stuck it’s sure to be the first thing on your mind. The same goes for your fire alarm and security system. And, yes, fax machines still exist. You need to ensure these are not left behind when you move your PBX to the cloud.


    Optimizing your licensing costs

    You probably don’t remember every detail of the last software license you signed—but we think about them all the time. As a result, we can help you optimize your spending. For example, if you are already utilizing Microsoft's suite of productivity tools, the integration of cloud-based calling support with Microsoft Teams can be a game-changer.

    If your organization already has a Microsoft E5 license, there is no additional charge for adding calling support to Microsoft Teams. Everything you are paying for software and hardware maintenance today is a savings straight to the bottom line.

    Speak to Our Tech Experts

    We can help your business optimize your Microsoft investment. Ask us how!


    Now is the time to start

    The writing is on the wall for traditional on-premises PBX systems. As you strive to remain successful in an ever-changing market, moving to a cloud-based communications solution is simply the right thing to do. By taking proactive steps to migrate to a more modern and flexible platform, you can unlock significant cost savings, improve scalability, and make it easier to adapt to the evolving needs of your workforce and customers.

    It’s time to replace your outdated PBX system, and that’s our specialty. Contact us and tell us more about your needs so we can design the right solution for you and show you exactly how much you can save over what you are doing today.

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