SIP Trunking vs Hosted PBX: Understanding the Key Differences

Two Paths to Modern Business Calling

When upgrading your business phone system, you will encounter two main options: SIP trunking and hosted PBX. Both use internet-based voice technology but serve different purposes.

Key Differences

• Hardware required: SIP trunking requires an existing PBX. Hosted PBX needs only IP phones.
• Management: SIP trunking — you manage the PBX. Hosted PBX — provider manages everything.
• Cost: SIP trunking saves on line costs. Hosted PBX eliminates line and hardware costs.
• Features: SIP trunking depends on your PBX capabilities. Hosted PBX includes modern features as standard.
• Scalability: Both scale, but hosted PBX scales faster.
• Disaster recovery: Hosted PBX has automatic cloud failover.

When to Choose SIP Trunking

SIP trunking makes sense if you recently purchased on-premise PBX equipment or have specialized configurations (Asterisk, FreeSWITCH, 3CX). See our SIP trunking services.

When to Choose Hosted PBX

Hosted PBX is right for most businesses, especially for eliminating hardware maintenance and supporting remote workers. See our cloud phone system or Cloud PBX vs On-Prem comparison.

VirPhone Offers Both

VirPhone offers both SIP trunking and hosted PBX. Contact our team for a free assessment.

Frequently Asked Questions

Can I start with SIP trunking and move to hosted PBX later?

Yes. Many businesses start with SIP trunking then transition when ready to retire on-premise hardware.

Does VirPhone support SIP trunking for 3CX and Asterisk?

Yes, VirPhone SIP trunking is compatible with all major PBX platforms.