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Is Premises-Based PBX Dead?

- Blog

By Kyle Miley

If I conducted a poll today as to whether premises-based PBX is dead, the answer would be an affirmative "Yes!" However, did you know that your grandparents were way more cool than you ever suspected? They used “cloud-based" service long before anyone knew what cloud was! Everyone had a telephone at home, and that phone line was provided by a PBX that was “hosted" off-site. Today many businesses are seeing the value of doing that same thing. In fact, according to one industry executive who spoke at a recent trade show I attended, approximately 2.8 percent of the market is using cloud-based communications systems. This is expected to be the largest growth opportunity for channel agents for the next few years. So if you aren’t selling it, you should be!

However does this mean that the clouds are building on the horizon for premises-based PBXs?

Not likely. Just as your grandparents used the early "cloud-based" solution, there was still something behind the curtain providing the dial tone on the back end.

Synergy Research showed that ShoreTel's premises-based equipment market had “17 percent sequential revenue growth from its third fiscal quarter."  

From Sonoran Integrations' own experience, we too are seeing a significant increase in our premises-based solutions. We are also seeing a large growth in our cloud offerings. In our discovery with each customer we are able to determine if hosted or premises-based is the correct fit, and we design the solution that best meets their needs.

Where will it all end? Who really knows? Many of our grandparents don’t have land lines any longer and are even using their cellphones for — shock of all shocks — shopping online. Similarly, the premises-based PBX will most likely be use in combination with cloud-based offerings. What percentage of each? Your guess is as good as mine!

Kyle Miley is president and CEO of Phoenix-based Sonoran Integrations , a Certified Gold ShoreTel Partner with offices in Arizona, Colorado, California and Costa Rica. During his more than 20 years in the industry, Miley has grown multiple communications companies from startups to companies with in excess of 40 employees. He is a member of the 2012-13 Channel Partners Advisory Board.


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