What is a premise Based Phone System?

Most people who use mobile telephones have little or no idea of how their telephone system works. In the world of business phones, most end-users take their service for granted. They never question how that call from England ended up on their phone while they were at a ball game in Yankee Stadium.

There is a complex array of hardware, software, cables and communication satellites behind the scene that move our conversations and visual data forward.

Switchboards like the premise-based phone system are an integral part of this network.

History of the Telephone

When Alexander Graham Bell was awarded the first U.S. patent for the invention of the telephone in 1876, our basic system of communication was changed forever.

One hundred forty one years later, the telephone has evolved from a simple two-way voice communication device to a technical marvel. Now we that can access the entire world on phones that are only about the size of a man’s wallet with a seemingly infinite number of functions. We can buy and sell things on our phone. We can watch movies and live-streamed sports events. We can monitor our business, our families and even our pets from hundreds of miles away. We can take photos and videos and share them with the entire world, And yes, we can even have talk to each other.

Evolution of Phone Switchboard Systems

Before the invention of the telephone switchboard, telephones were connected in pairs directly with each other.

In 1878, the first commercial telephone exchange opened in New Haven, Connecticut and twenty one customers were linked together.

In 1887, the multiplex switchboard was introduced to the country and it became the genesis for all future switchboard systems. The early systems were designed to service business phones only

Up until the early 1950’s, some residential telephone systems were still on what was known as a “party line.” As many as a dozen homes would be linked to one line that was hooked up to a central switchboard manned by an operator. Each home had a special number of ring tones that meant the call was for them. If one long and two short rings was your number, you answered the phone. The problem was that all of the other customers on your party line could pick and listen in on your conversation.

Today, most switchboards are managed automatically without human assistance.

What is a Premise Based Phone System?

Premise based phone systems are often referred to as a PBX or simply a phone system. The word “premise” is derived from “premises” which is defined as an area, property,or site.

Therefore, an on-premise phone system is where you physically have all of the equipment necessary for operating a switchboard system within your physical location.

The premise phone system receives a dial tone from a traditional telephone trunk provider. The dial tone comes directly into your location and connects into your phone system.

On-premise systems have a server on site. You the end user are responsible for any upgrades, maintenance and expansion of the system.

Hosted Phone System

Unlike the on- premise system, the hosted phone is cloud-based. You pay a monthly fee to lease all of the telephone equipment which is located somewhere off site. The internet is used to connect the provider with the customer.

Which System is the Best Use of Your Money?

Of the two switchboard systems described above, which one best fits your company needs? In strictly economic terms, the on-premise system takes a capital investment to purchase and install the equipment. The hosted system requires only a monthly operational expense to secure the service from a cloud provider.

That said, the primary financial benefit for premise-based users is that once the capital has been invested, there are no ongoing and never-ending monthly equipment payments required by hosted switchboard providers.

The Advantages of Owning an On-premise Phone System

• No danger of fee increases.
• Ownership cost is lowered as the system grows.
• You maintain complete control with full flexibility.
• You can even switch solutions or mix-and-match.
• You have total control over every detail of your telephone system.
• You can do what you want with your equipment.
• You will know the full capabilities of your telephone system because you are handling development.

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