Rationale for Centrex

Centrex Positives and Negatives

CENTREX OFFERS:
- Personnel savings
- Network cost savings
- Less management effort
- Ease of use
- Space and power savings
- Automatic upgrades

CENTREX MAY RESULT IN:
- Loss of control
- Possible cost increase over time
- Delays in making changes
- Limited systems integration
- Hybrid Centrex-PBX networks

When we talk to telecom managers about choosing Centrex service or PBX systems, their reasons are remarkably balanced. The one absolute advantage of conventional Centrex, over the in-house PBX option, they see as saving of space. This is particularly important for large organizations that rent expensive floors in downtown office towers. Good second reasons for choosing Centrex are the savings on personnel—both system administrators and console operators—and the expected relief from problems of technological obsolescence. For 40 years Centrex has been steadily, although not spectacularly, sold on the basis of the two Ss: simplicity and space. These are still the reasons given by small business owners as the rationale for renting single-line Centrex packages.