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Not All PBX is Created EqualFATHOM VOICE | White PaperPublished August 2013

Fathom Voice6311 E. Westfield Blvd. Suite 105 + 201Indianapolis, IN 46220

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© 2013 Fathom Voice Intellectual Property. All rights reserved.1 | Fathom Voice White Paper

Executive Summary

The digital age may be upon us, but one of the oldest forms of communication - telephony - remains an integral part of business. Despite the increase in the use of mobile applications, Web and email, telephony is still critically important across many industries, including sales and customer service. Opening communication channels nationally and globally is important to business.

However, many businesses still rely on traditional analog phone systems for service and do not have integrated communication platforms. The disadvantages to legacy phone systems are numerous, including the lack of standard and advanced features, unprofessional presentation to prospective clients and poor call quality. All of these result in lost business opportunities.

The use of a PBX phone system can allow businesses to overcome these issues. With PBX, organizations are given access to call features and voice applications that will allow them to make day-to-day business processes more efficient. While the advantages to using PBX are vast, not all systems are the same. This white paper analyzes the PBX phone systems currently on the market and provides information on why a cloud-based systems is advantageous.

Introduction

PBX is an acronym for Private Branch Exchange, a private phone network often used within businesses and organizations. A PBX is a computerized telephone system that acts as a modern-day switchboard, managing incoming and outgoing calls. Calls are sent over the internet and routed to specific extensions. Managed through online web portals, PBX systems give businesses access to voice applications and additional features that would not be possible with a traditional phone system.


What’s on the market?


On-Site PBXAn on-site PBX is the switchboard-like function of a business phone system that connects telephone wires to employee extensions and routes calls. These systems are physically housed within a company.

Installation and MaintenanceThe equipment associated with the PBX must be installed and maintained at business headquarters. Whether an employee is hired to manage the system or a technician is brought in, monthly maintenance will need to be performed. Additions and modification of hardware, including extension lines, must also be done manually.

Total Operating CostsNot only do on-site systems have high upfront costs due to third party installation, but they require perpetual maintenance and vendor upgrades, keeping operational costs high.

AccessibilityCallers must be at the physical location of the server in order to make a call from a business phone or receive voicemails. This limits mobility, call routing and business efficiency.

Ideal for: Small businesses looking to upgrade from traditional analog lines who have IT staff on-site to perform system maintenance. Good option for businesses with low bandwidth.

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FlexibilityAn on-site PBX can provide increased flexibility and control. Users have the ability to define inbound and outbound call routing and even choose to use multiple service providers to reduce routing costs. Small businesses that have limited or unreliable bandwidth can use their on-site PBX to interface with traditional PSTN (public switch telephone network) networks, a solution that is especially convenient in situations where failover is necessary.

ScalabilityOn-site systems restrict scalability and licensing, which can be particularly frustrating for companies that have plans to grow. On-site system limits the number of phones a business can have at a particular location, as well as the number of licenses they may hold.

Disaster Recovery and RedundancyOn-site PBX systems are not equipped to handle disaster recovery, as there is no way to automatically store and retrieve lost data if the actual system is destroyed. If the system goes down, business is put on hold.


Hosted PBXHosted PBX functions in the same way as on-site PBX, but instead of the system being housed on-site, it is hosted at a third-party location.

Installation and MaintenanceThere is little to no installation on-site, as the system is housed off-site at a third party location. The vendor hosting the service is responsible for troubleshooting and fixing network errors, but yearly system upgrades and support services are required.

Total Operating CostsOrganizations do not have to install costly equipment and because the system is managed off-site, the need to perform manual repairs is eliminated. However, businesses should expect to pay for vendor upgrades and support services.

AccessibilityMobility is significantly increased as a hosted PBX phone system can be accessed anywhere there is a strong internet connection. With its centralized management system, hosted systems can accommodate businesses with multiple office locations. Using an online web portal, users can route calls to cell phones and send voicemail directly to their

Ideal for: Small to medium-sized businesses that want to enhance their phone system, increase mobility and save on system maintenance and upkeep.

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FlexibilityA hosted PBX gives businesses more geographic flexibility than an on-site PBX, but is still limiting. Routers, switches and specific cabling may be necessary in order to ensure that the data network can handle call traffic and system activity.

ScalabilityUnlike an on-site PBX, hosted phone systems leave room for expansion. New lines and extensions can be added via an online portal and the vendor shoulders the responsibility for install. However, the cost to add and remove lines with this system can become overwhelming and limit growth.

Disaster Recovery and RedundancyEven with advanced system monitoring and management, disaster recovery and redundancy are poor with hosted systems. The PBX is at a single location with tape backups, meaning that the the data center itself is still at risk, despite the system living off-site.


Cloud PBXWith a cloud PBX phone system, service is provided to a company through the internet by a remote service provider. Call data is stored in the cloud, not on the computer or hardware itself.

Installation and MaintenanceAll that is needed to install a cloud PBX system is an IP phone and internet connection. A cloud PBX solution requires no in-house IT support or maintenance, as the system is hosted in the cloud - over the internet - not at a physical location.

Total Operating CostsWith no cost to install the system, limited maintenance and system upgrades, the total operating costs of cloud-based PBX systems are very low.

AccessibilityBecause a cloud PBX is not tied to a single, physical location it is truly accessible from anywhere and does not have geographic limitations. You can add a phone in California to the same cloud network as a phone in a remote branch office in New York.

Ideal for: Small to enterprise class business who need to cut costs, increase phone system accessibility and scalability and advance communication services.

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FlexibilityCloud PBX phone systems can be customized to fit the unique needs of a business. With an online web management portal, extensions can be added or removed with the click of a button. Businesses have unlimited access to licenses and system activity can be easily monitored and managed.

ScalabilityFrom one to one hundred, it is easy to scale with a cloud PBX. Simply add or remove extensions via the online portal. Not to mention cloud PBX phone systems leave room for CRM and application integration. Communications platforms need to work seamlessly together, and a cloud PBX makes that possible.

Disaster Recovery and RedundancyDisaster recovery plans ensure that call data will never be lost, no matter the situation. With the built-in redundancy and mirrored servers of cloud systems, calls do not go unanswered and business opportunities are not lost. If an office location is no longer accessible, all calls can be rerouted to mobile or home phones so that calls are not missed.

Summary

An on-site PBX is a good way for a business to upgrade from a traditional phone system, especially if they’re looking to have complete control over their phone system. The system can be managed directly on-site by employees, including adding and removing extensions. However, it has the highest cost for setup and maintenance and system downtime is unpredictable. Redundancy is poor and mobility is limited.

Hosted solutions can provide small and medium-sized businesses with low maintenance costs and enhanced technology. If current equipment is aging, switching to and deploying a hosted PBX system is easy and affordable. The phone system provider assumes responsibility for maintenance and system monitoring, taking the stress and expense off of the business. Mobility increases significantly and users have more options for call routing and transferring, but companies are subjected to costly vendor upgrades and scalability limitations. While both and on-site and hosted PBX allow businesses to advance their technology, a cloud PBX is more advantageous for businesses in the long run.

Cloud PBX systems provide companies with all of the advantages of on-site and hosted solutions, as well as additional features and benefits. Call data is stored in the cloud, ensuring that nothing is lost if disaster strikes. Mobility is increased and business calls can be made anywhere at anytime. Depending on the vendor, businesses will have access to both international and national data centers, as well as voice applications like online fax and text messaging. Pricing is predictable and bills will remain the same month after month. With a cloud PBX phone system, businesses can scale from one to 1,000, easily adding and removing extensions directly from their web portal. Cloud PBX systems are redundant, customizable and easy to manage, making them superior to the competition.


Features Cloud PBX On-site IP PBX Hosted IP PBX

RedundancyMirrored in multiple data centers across the world

Single location of operation Single location with tape backups

Disaster Recovery Yes No Maybe

Scalable Unlimited licenses Limited licenses Limited cost scaling

Moveable Move desk phones Move PBX & desk phones Move desk phones

Maintenance/Service None Yearly upgrades/support Costly vendor upgrades

Accessibility Anywhere you have Internet Location of PBX Anywhere you have Internet

Hardware Purchases Desk phones & network equipment

PBX, desk phones, licenses & features

Desk phones & network equipment

Dial Tone Provided Must find SIP provider or Carrier Provided

Total Operating Cost Low High Medium

Implementation Plug in desk phonesThird party install PBX and install desk phones

Plug in desk phones

Web User Interface Yes None Limited

Down Time Less than 5 minutes Unpredictable Unpredictable

Peered Internet Service Providers 200+ 1-2 1-5

Number of Contracts for Voice Service One Two or more One

Significant Cost SavingsFathom Voice’s cloud PBX phone system only requires phones and an internet connection, eliminating the need for costly on-site equipment, saving businesses up to 60 percent.

Built-In RedundancyDisasters happen, but the Fathom Voice disaster recovery plan ensures that users will never miss a call. Mirrored servers spread across eight Amazon Web Service data centers, both around the country and internationally.

GuaranteeFathom Voice offers a “five-nines” ServiceLevel Agreement, meaning they guarantee 99.999% uptime for their network in a year with a money-backed guarantee.

Easy to Install & TrainThe Fathom Voice processes make enrollment and training quick and easy. Fathom Enroll, Fathom University and Go.FathomVoice help new clients begin using their products and become experts in a short amount of time.

Month-to-Month ServiceFathom Voice offers service on a month-to-month basis; Go.FathomVoice lets businesses make changes to their account with a click of a button.

Fathom Voice reflects the key attributes that define the cloud-based PBX systems described in this white paper. Their industry-leading software and services are redefining business communications. Go.FathomVoice and applications like Fathom Fax and SMS are simplifying business processes and make communicating with clients better. To learn more about cloud PBX solutions and the business value of Fathom Voice, visit www.fathomvoice.com.


Fathom VoiceFathom Voice is a communications software company focused on building industry-leading technology. Their flagship product is a cloud-based phone system that offers hundreds of advanced calling features and an industry-leading web portal, Go.FathomVoice. With Fathom Voice, the capabilities of the PBX phone are enhanced and users are able to communicate better, faster and easier.

The Receptionist application inside the Indusrty leading web portal, Go.FathomVoice.

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