FEATURE VS. FEATURE

SIP Trunk vs Hosted PBX: Key Differences You Need to Know

Choosing the right communication system can make or break your business operations. But how do you know if SIP Trunk or Hosted PBX is the best fit? Explore the main differences to make an informed decision.

Contact sales
Try for free

Hosted PBX

SIP Trunking

Differences Between SIP Trunking vs Hosted PBX

Parameter

Hosted PBX

SIP Trunking

Infrastructure

Only needs internet and routers.

Requires SIP-enabled PBX or VoIP gateway.

Maintenance

Provider handles maintenance, minimal IT expertise required.

The business maintains equipment and requires in-house IT staff.

Costs

Lower upfront costs due to ongoing monthly subscriptions.

Higher initial costs, often priced per channel or minute.

Scalability

Easily scalable, users can be added or removed through the app.

Limited scalability requires changes to PBX infrastructure for expansion.

Features

Comes with built-in features, easy to add new ones.

Dependent on your local PBX; may require custom development or upgrades.

Reliability

Relies on the provider’s infrastructure and internet connection.

Depends on both the on-premise equipment and the Internet connection.

Flexibility

More flexible, you only need an internet connection and the app.

Less flexible, may require additional setup for multi-location support.

Best suited for

SMBs, remote workers, or multiple locations.

Larger enterprises with existing PBX.

Open whole table

What is Hosted PBX?

Hosted PBX (Private Branch Exchange in the Cloud) is a cloud-based phone system that works over the Internet without the need to install complex equipment in the office.

​​Calls are made using VoIP (Voice over Internet Protocol) technology, meaning they use the Internet instead of traditional phone lines. The provider handles all maintenance and updates, so your business only needs a stable internet connection and the software installed on your devices to get started.

Contact sales
Check Pricing

What is SIP Trunking?

SIP trunking is a technology that lets you make calls over the internet using VoIP. The main difference with hosted PBX is that SIP trunking requires an on-site physical PBX system. SIP trunking acts as a virtual bridge that connects that existing PBX system to the internet, allowing it to use VoIP to make and receive calls.

Contact sales
Try for free

Who Should Consider Hosted PBX?

Hosted PBX systems benefit many types of businesses, especially:

Small, medium, and large businesses looking for a cost-effective phone system: Hosted PBX eliminates the need for expensive on-premise hardware and maintenance, so it’s a great option for businesses that want to cut costs.

Companies with remote or distributed workforces: It lets employees work from anywhere, as they only need a stable internet connection.

Growing businesses that need scalability: Hosted PBX is easy to scale up or down with just a few clicks, without infrastructure changes.

Contact sales
Check Pricing

Who Should Consider SIP Trunking?

SIP trunking can benefit many types of businesses, but it’s particularly well-suited for:

Larger companies transitioning from legacy systems: Businesses moving away from traditional PBX systems can use SIP trunking to modernize their communications infrastructure.

Organizations preparing for the future: As some countries plan to phase out traditional phone lines (PSTN), adopting SIP trunking helps companies stay ahead of these technological changes.

Contact sales
Try for free

FACTS ABOUT CLOUDTALK

Expand business,
reach new levels

Versatile

70+

Premium features

Reliable

99.99%

Uptime SLA

Available

24/7

Customer support

Global

180+

Countries available

Secure

24/7

Security and data monitoring

Hosted PBX vs SIP Trunking: Pros & Cons

Hosted PBX

Reduce Costs Up to 70%

You don’t need to buy new equipment or hire a technician. You can install it by yourself and use your current devices – like computers, phones, or tablets.

Gain Flexibility

With just an internet connection and the app, you can call from anywhere without losing connection or professionalism.

Scale Easily

You can add or remove users as needed with a few clicks. There’s no need to wait for the IT specialist or deal with complicated setups.

Depend on Stable Internet

Without it, you may face issues like delays, packet loss, and reduced call quality.

You May Experience Interruptions

It relies on the provider’s network, so outages or maintenance may cause disruptions. Trusted providers use backups to reduce downtime.

Reduce Control Over the System

The provider manages the system, reducing your direct control. However, reliable providers offer management tools, like control panels, for easy user management.

VoIP

Streamline Communication

It integrates communication methods like voice, video, and messaging into a single network, boosting collaboration without separate systems.

Improve Call Quality

By using high-definition voice codecs, it provides clearer and more reliable communication than traditional phone lines.

Ensure Redundancy

As calls are automatically rerouted to another trunk in case of failure, guaranteeing continuous communication.

Invest More Upfront

As SIP trunking needs on-premise equipment, you’ll need to invest more upfront for hardware and setup.

Face Potential Compatibility Issues

If your phone system is outdated, it may not be compatible with SIP trunking. You may need to upgrade to a new system before making the switch.

Hire In-House IT

You’ll need in-house expertise to maintain on-premise systems. If something goes wrong, you can’t rely on vendor support for troubleshooting.

OUR FEATURES

Discover 4 most popular
Hosted PBX features

FAQs

What is a SIP Channel?

An SIP channel is like a virtual phone line that lets you make and receive calls over the Internet instead of traditional phone lines. Each channel handles one call at a time, and you can have multiple channels for more simultaneous calls. It’s part of how VoIP phone systems work.

What’s the difference between SIP trunking, Hosted PBX, and VoIP?

SIP trunking connects your existing phone system to the internet, requiring on-site equipment and IT staff. Hosted PBX is a fully online phone system managed by a provider with no need for hardware. VoIP is the general technology for making calls over the internet, used in both SIP trunking and Hosted PBX.

What is SIP forking?

SIP forking allows multiple devices to receive the same incoming call simultaneously. When a call is made to a single SIP address, it can ring on multiple devices like a desk phone, mobile, or softphone at the same time. The call is connected to the first device that answers. This feature is useful for increasing availability across devices.

How much bandwidth does a company need for hosted PBX?

The bandwidth needed for a hosted PBX depends on the number of concurrent calls and the quality of the calls. Typically, each VoIP call requires 80-100 kbps of bandwidth for high-quality audio. For example, 10 simultaneous calls would need around 1-1.25 Mbps of upload and download bandwidth.

What is SIP in the server?

SIP (Session Initiation Protocol) on a server is responsible for managing and controlling VoIP calls and multimedia sessions. It handles tasks like setting up, maintaining, and ending voice and video calls over the internet. It routes these calls between users, devices, or networks, ensuring proper communication and connection management. It’s a key component in VoIP and other real-time communication systems.

CloudTalk is a data-driven solution for exceptional customer experience and intelligence is a key part of it.

Schedule a demo today and find out for yourself.

Schedule a demo