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In House or Hosted - the SIP Trunking Debate

Updated on October 10, 2011

Basics of SIP Trunking

Many organizations have a PBX system to help manage calls into and out of their office. Functionalities include extensions, business hours, answering systems, department calling, helpdesk management, basic IVR choices, and free inter office calls. However, with the introduction of the Internet, many businesses realized they could switch over to IP based PBX systems for even more flexibility as well as the power to make free calls to offices in a different region of the country since the calls would go entirely over the Internet.

Successful as these systems were, they obviously suffered from a huge limitation - namely the inability to call regular PSTN phones which were on an entirely different network. They needed to merge their advanced PBX systems with a telecom company in order to do that. Some time ago however, innovative Internet Telephone Service Providers or ITSPs realized that they could provide PSTN connectivity for these in house IP PBX systems via an "SIP Trunk." The ITSP would manage the connection to the traditional telephone system and the company would pay the ITSP a fee for the use of that trunk.

This magnified the worth of an IP system many fold and an SIP trunk became the standard way to provide such connectivity.

VoIP SIP Providers
VoIP SIP Providers

Hosted PBX Systems

Successful as the IP systems were, they still required significant technical know how and capital expenditure for setting up the IP PBX system. There was also the danger of lock in, obsolescence, and management problems along with hiring a technical team who knew what they were doing, finding space for the servers etc. This put such systems out of reach for small and medium sized businesses who didn't want to deal with the hassle.

But the recent introduction of hosted PBX systems has changed all that. Businesses can now avail themselves of VoIP services in the same way they use website hosting services. Someone else builds and manages the IP PBX and allows firms to link in for a small monthly fee. This allows specialized staff to provide advanced services such as VoIP HD voice servers which might be beyond the capability of even experienced businesses.

Companies no longer have to worry about their systems going obsolete since the management and upgrading of the infrastructure is no longer their problem. They can instead focus on what is important to them and not get distracted. Contact a VoIP SIP provider to find out how to ditch the telecom companies and get going in less than 15 minutes!

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