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VoIP - IP PBX Hardware Solution vs Hosted Solution

I am considering switching over to VOIP for my small business. I noticed that many VoIP companies have a hotsed solution where you can log into your VoIP acount using their website. Once logged in you can listen to voice mail and adjust options like forwading voice mail messages to email and other simmilar task. Some even offer services where you can run a small "call center" and automatically distribute calls equally amounghts a group of operators.

You can also accomplish all of the above and more with an IP PBX hardware that you can buy from major vendors like D-Link. Such as:

http://www.dlink.com/products/?pid=450&sec=2

What is the atvantage of using a hardware solution like the above D-Link IP PBX? You still have to pay the same monthly fees to the VoIP provider wheather you use their online interface or not. Do any VoIP providers offer a discount when using your own hardware?

Thanks,

Shaun

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Reid Palmeira

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ShaunBarney

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RP

Wow, great answer. I have a couple more questions. I already have T1 service from Speakeasy, and I plan to buy an IP PBX, but if I understand you correctly I will still need to puchase a PSTN gateway. Is a PSTN gateway a piece of hardware or is it just the service I purchase from the VoIP company?

This is the area I usually get lost. Where does the translation from telephone number to IP address happen? It seems all I am really paying for from the VoIP provider is this PHONE NUMBER to IP translation service (simmilar to DNS) and the bandwidth from my T1 to that piece of equipment that does the translating. Am I understanding that correctly?

Thanks for your help.

Reid Palmeira

Depends on the T1. If it's a T1 of internet access you'll need a voip provider that can terminate calls from and originate calls to the PSTN. if it's a plain telephony T1 that connects to a voice switch somewhere you're fine.

a pure data T1 can never traverse the PSTN without some gateway in between. This is typically the role of the voip provider. however if you buy a T1 (or fractional T1) with voice channels then those terminate to a phone service provider's switch somewhere and that's your PSTN connection.

So if you have a voice T1, that IP PBX is essentially doing the "translation" between the IP of the phones and the PSTN. If you have a data T1, it's the voip provider thatt's doing that conversion and PSTN connection.

Cheers,