Cost Analysis: Choosing Between On-Premise FreePBX or Cloud Hosted Phone Systems.

Cost Analysis: Choosing Between On-Premise FreePBX or Cloud Hosted Phone Systems.

Amazon Affiliate Store

Gear we used on Kit (affiliate Links)

Try ITProTV free of charge and get 30% off!

Use OfferCode LTSERVICES to get 10% off your order at

Tesla Referral Program Offer

Lawrence Systems Shirts and Swag

Digital Ocean Offer Code

HostiFi UniFi Cloud Hosting Service

Protect you privacy with a VPN from Private Internet Access

Google Fi Service Referral Code

More Of Our Affiliates that help us out and can get you discounts!



Our Forums



Our Web Site

VoipMS affiliate link

34 thoughts on “Cost Analysis: Choosing Between On-Premise FreePBX or Cloud Hosted Phone Systems.

  1. I do not like Free PBX or the cloud. I accept VOIP and IP Telephony. The Open Source world doesn't understand voice nor do they understand networking. This is an ingredient to disaster, leading to the customer's users to just go and use the cell phones, which isn't that great either.

    These are really low level phone systems that have the same quality standards from 50 years ago. Not to mention the Chinese-made/grade SIP phones; and how lousy they look, how lousy reliable they are and how it's not designed from a user's perspective. I am not surprised there's a video by this firm because the IT world is to cut corners and go "cheap" – most importantly they don't get voice.

  2. One benefit to a cloud based PBX is resiliency. We have an on-prem PBX solution, redundant ISPs (FIOS, Comcast, and 4G connections), Eaton UPS' with nearly an hour of runtime. All staff have been working remotely since mid March with our desk phones without an issue. Until today. None of the systems we had in place mattered when there was an electrical fire in the building and NStar killed power completely. Once everything shutdown, we no longer have phone service. All incoming calls are being routed to a single cell phone and we "hope" to have power back by morning… maybe…
    So depending on the company size and reliance on phones to generate revenue, an outage could easily cost a company more than the upcharge for a cloud solution.

  3. The MRC for on-prem seems way off. Are you saying that 13 users are equating $25 in monthly minute costs? Ignoring incoming minutes, that would mean each user is only doing 7 minutes a day in outgoing calls…what?

  4. Even though I'm a "one man shop" I still have chosen on-prem. Of course… I'm also a tech guy. One reason for that is for the flexibility of the phone system including integrations with automation systems & the ability to have multiple DIDs for different purposes come into the same system.

  5. I just got a NAS and I been working to get a docker setup so I can have a working copy of a PBX solution. Any chance on future videos of a setup tutorial?

  6. Can’t justify it in the U.K. for small business when you can get unlimited broadband and landline with unlimited calls for just £28pm. I wish I could.

  7. We sell PBX Systems to clients as well. And are always amazed at how many of those clients get taken to the cleaners without even knowing there are other options out there. We happen to be a 3CX reseller but support other systems as well. Like you said you can't learn them all and become an expert at what you do sell.

  8. I'm old enough to know what a real phone is and there is still a segment of the population that appreciates that when you pick up a receiver there is a dial tone. And when it goes down… it just comes back up. The internet, ISPs and VOIP are not that predictable or reliable. I am constantly getting emails from my ISP to reboot my router. Small businesses are a hard sell because every business owner has a high school kid that wants to hack the phone system or business computers. You'd be hard pressed to take one of those on. I deploy a "business in a box" and I have to keep th script kiddies out.

  9. Great video, coincidentally I am getting to relaunch my business as a VoIP provider on a new system. the price comparison site is really useful

  10. So I studied MIS in school thinking it would give me alot of hands on experience with IT as well as business…turns out it gave me a good basic understanding of both, but I wouldn't consider myself an expert in either. I'd like to take a more focused route with anything IT just because I feel it's more valuable in my situation. I have a job so I'm not worried in a professional sense, but I want to be prepared in case anything ever happens. Where would you suggest I should start in order to get a really good IT learning environment? Could be books, websites, a specific programming language, or even a certification. I recently started doing research at Linux, and want to make the switch to something that will give me a good understanding of that environment too. Also you don't have to help me with this lol it could be anyone that just has the time, or willing to share some knowledge. Thank you!

  11. Also, doesnt Ring Central include unlimited minutes in their plan? charges $0.01 a minute US outgoing. Per line if you do 120 minutes a day, that's $36 a month in just charges for US outgoing only.

  12. freepbx support's video calls you need a hard phone or soft phone or video doorbell that has that capability in the GUI go to settings/asterisk advanced settings scroll down to video support click enable and you can choose from multiple video codecs to use

  13. you can also have freepbx installed on a Vultr instance in the cloud so you get the benefit of hosted PBX and low cost, Vultr has already a freepbx image or when you set up an instance you can point it to a iso download URL, and freepbx has a great firewall to run it in the cloud

  14. FLAWED… you should be doing apples for apples
    if RC phones are 100, then your on prem phones should be 100.
    how about updating this video with using EQUAL costs of phones for RC that equal your on prem.

    I hope your example on-prem 6900 is a"we're usin this fugure" else holly crap your over charging.

    DISCLAIMER: I only do on-prem with freepbx and grandstream, I wont suggest hosted pbx even for 2 phones, 1 phone, yes of course, 2 if they are stationed next to each other, but if in different rooms, its on -prem.

  15. Hi Tom, great video. Maybe a good idea to start bringing more content on VOIP Phone systems like FreePBX. Just like you have with pfSense and FreeNAS. Start with the basics.

  16. Good video. About 2 years ago I switched to an offsite hosted freepbx, mainly due to the fact I have many remote users.

  17. You can still build a “cloud” PBX and not have to use someone like RingCentral. Take the ISO of your chosen flavor (FreePBX, 3CX, etc.) and spin up a VM in a public cloud. As to the other component about having video chats, make sure to check out Zulu UC that works with both PBXact and FreePBX. It may not support video yet but it has all the chat and messaging functionality.

  18. We have tried Elastix, FreePBX, Issabel and others. We now use freeswitch and Fusion PBX and have been happy using it as a multi-tenant solution.

  19. +1 for We've been using it for about 7 years at many offices ranging from 5 to 30 phones on self hosted systems. Works great. Good pricing.

  20. THIS WAS GREAT. Seriously, this is great advice. We switched to about 6 months ago and love it. The difference in price from what we moved from is staggering.

  21. I'm not a Sangoma guru, but your price to sell that PBX UC with phones has a good bit of markup on it……..~40-50%?

  22. and vitelity have been great, so far…been using them for years for small offices… really offers a very full featured PBX with their service, unlimited sub-accounts, no charge for calling between sub-accounts (you can setup 10+ext numbers for each phone for "internal" dialing), as many voicemail boxes as you want to setup, conference bridges, etc… , so $3-4/month goes a long way there…as much as normally I push everything on-prem, makes a lot of sense for the less than 20-30 phones customer…and in those situations, I just assist the customer in creating and setting up their account directly.

    I manage a Asterisk system for a municipal government with 300 DIDs and 500 extensions spread out over 40 sites…definitely far ahead going on-prem there – down to 12 SIP trunks from a local CLEC for external connectivity, moved to there from a 23B+D PRI circuit about 3 years ago, and 15 years ago they were paying for 200+ POTS lines at $55/each/month (we though we were saving a lot going to the PRI with a common Asterisk PBX at that time)….So phone costs are now a very small fraction of what they were 15-20 years ago

Leave a Reply

Your email address will not be published. Required fields are marked *