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G Suite Admins Blog > Unified Communications

Traditional On-Premise PBX Systems Vs RingCentral



For many decades, the corporate phone standard has been on-premise Private Branch Exchance, or “PBX.”     PBX systems gave companies the ability to reduce the number of individual phone lines on premises by using extensions.   Although larger businesses may have been cautious to adopt this new technology, the benefits and cost savings of a Voice over IP (VOIP) cloud-based PBX are significant.  


VoIP/Cloud PBX System: The New Standard

The new standard is undoubtedly Voice over IP (VOIP) and cloud-based PBX.  These are PBX systems that offer the same functionality as the phone system your company uses now, but that functionality is delivered over broadband internet. Here’s a look at how RingCentral Cloud PBX stacks up against the old standard.


RingCentral Office vs. Standard PBX System:
20 Users and more.


  • The up-front costs for small businesses offer vast savings over old-school PBX systems.
  • On-premise hardware, setup and implementation, and PBX software licenses are FREE. Similar costs for your old PBX system could easily top $10,000 for a 20-user system.
  • Your monthly fees will substantially decrease with RingCentral Office. You’ll get unlimited local and long-distance calling, unlimited web-based fax, 24/7 customer support, and audio conferencing, all completely free of charge.
  • RingCentral will optimize your system for smartphones and tablets, a service unavailable to traditional PBX customers.
  • Total cost savings will top 65%, including the initial phone installation and purchase at about 1/3 the cost of PBX installation.


Advantage: Cloud PBX


RingCentral Office vs. Standard PBX System:
100 Users and More.


As a larger business, your traditional PBX installation will come with a hefty price tag. Your on-premise hardware will run about $8,000, and the phone costs can soar to $15,000. Setup and implementation and software licenses will tack an astonishing $25,000 to that figure. RingCentral Office undercuts that price at an astounding $9,900, which covers everything and adds integrations with the applications you need to run smoothly: GoogleDocs, Dropbox, Outlook, and others.


  • For all businesses, RingCentral eliminates the antiquated service contract that kept you tied to your PBX system.


  • Cost savings will total approximately 58%, or over $90,000. These are not estimations – they are actual figures paid by companies for RingCentral Office vs. Standard PBX systems.


Advantage: Cloud PBX



Additional Advantages of Hosted PBX System


Hosted PBX is an excellent choice if your organization is geographically distributed across a broad area. Your employees can use their mobile phones to access the network with no limitations based on location.

if your company is growing or you anticipate future changes to structure or size, hosted PBX allows you to quickly add lines, even in new locations.

Your phone system will be hosted in the cloud, which means there’s no management required on-site. Everything can be remotely administered through a web portal, even if you’re moving an entire office.

You’re probably accustomed to traditional PBX features like call waiting, caller ID, and conferencing. All of these features are standard with hosted systems, but hosted PBX adds high-tech features that will change the way you do business. Find me / follow me, voicemail transcription, and calling groups are all uniquely designed to streamline and improve the way you communicate with colleagues and clients.

All of these features would be meaningless without reliability, but cloud-based PBX is stable regardless of weather emergencies or power outages. If a server goes out, your system will automatically reconnect to a working server.


  • Software updates are instantaneous and automatic, so you can go about your business without worrying about whether your communications platform needs updates or maintenance.
  • The burden of HIPPA compliance is on the vendor, so compliance is simple.




Making the Switch to Cloud PBX


If you're still using an antiquated phone system, it's time to look at making the switch. Bringing your communications platform up to date means improving speed, reliability, and user technology integration. If you're building from the ground up or performing a tech upgrade, consider making RingCentral an integral part of your business.