This document compares UCaaS and PBX systems, discussing their differences in terms of cost, scalability, and reliability. UCaaS (Unified Communications as a Service) is a cloud-based communication solution with lower upfront costs and no hardware/software costs, providing greater scalability and reliability through strong internet connectivity. In contrast, on-premises PBX systems have higher total costs of ownership, single points of failure if the system fails, and are better suited for large-scale network creation and PSTN telephone line connectivity. The document concludes that UCaaS will likely acquire 40% of the total market share by 2020 and is the better overall option for most businesses due to its accessibility, reliability and flexibility.