When considering cost and quality factors for an IP PBX vs. Cloud based PBX, I would first say that there are cases where a premise based IP PBX is a good choice. This would be the case when a company has a large amount of intra-company calls from the same geographical location.
This is due to the fact that calls on the same network with an IP PBX do not have to use the Internet, just the internal network. Another case where IP PBX makes sense is if the customer already has a significant and recent investment in hardware. So, for example if a customer has an PBX, it may make sense for them to simply adapt it to SIP using an IP Office. can then supply SIP trunks for the IP Office, and provide backup call paths giving them the best of both worlds.