Skip to content

How A Hosted PBX Can Benefit Any Enterprise

What Is A Hosted PBX?

A hosted PBX (Private Branch Exchange) – also known as a virtual PBX or IP PBX – functions similarly to a traditional on-site PBX in that it is responsible for handling all call traffic – both internal and external. The primary difference between the two is that a hosted PBX is stored in the cloud; eliminating the need for large and expensive on-site hardware. Thanks to recent advances in data storage and transmission, there has never been a better time to make the switch to a hosted PBX.

Hosted PBX Service is an acronym for Private Branch Exchange

A hosted PBX is managed entirely off-site, thereby removing the need for additional hardware, software, training, and costly installation. Due to the cloud-based nature of a hosted PBX, there is no maintenance and a new system can be rolled out quickly and ~ easily – without any configuration required on the users’ end. A hosted PBX handles all call routing and switching and works with both the Public Switched Telephone System (PSTN) and Voice over Internet Protocol (VoIP).

Find out more information in our post on how a digital PBX system works.

What Can A Hosted PBX Do?

Even for small businesses, a hosted PBX can perform many essential functions. From the most basic features – like hold music, transfers, and call-waiting – to more modern, advanced functions – such as ACD queues , automated attendants , and extension dialing – a hosted PBX is capable of offering anything a business needs to stay in contact with their customers.

Additionally, as new features are rolled out, any existing hosted PBX can be immediately updated with no work required from the user. Add new features, lines – entire offices – with only a handful of clicks.  All without the need for any on-site equipment or maintenance.


What Are The Differences Between A Traditional & Hosted PBX?

While both traditional and hosted PBXs serve the same functions, there are important distinctions between the two. A few of the major differences are laid out below:


Traditional PBX Hosted PBX
  • Not dependent on bandwidth
  • No upfront costs
  • Infrastructure handled in-house
  • No maintenance
  • Unforeseen costs of maintenance
  • Moderate bandwidth use
  • Basic call features
  • Training and support included


The single biggest difference between the two systems is that a hosted PBX requires no on-site hardware or software in order to fully function. Additionally, the costs and hassles associated with installing and updating a traditional PBX are often prohibitive, particularly for newer or rapidly growing businesses, while a hosted PBX can be rapidly deployed and scaled.

Hosted PBX services is an acronym for Private Branch Exchange

What Are The Benefits Of A Hosted PBX?

As previously mentioned, one of the primary advantages of a hosted PBX is the saving associated with removing the need for expensive hardware. However, the benefits don’t end there. So, why are so many businesses opting to switch to a cloud-based hosted PBX? Let’s take a look at some of the biggest features a hosted PBX can offer.

  • Support Remote Workers
      • It has never been more important to offer your remote workers the best tools they need to help the company. Using a hosted PBX allows any employee to work from wherever is most convenient for them by having all calls forwarded to any number they desire using VoIP.
  • Rapid Deployment
      • Since a hosted PBX requires no on-site installation, the set-up of a new system can be completed in a matter of days – possibly even hours. New features can be immediately added as they are developed, at the click of a mouse.
  • Custom Scalability
      • Unlike traditional PBX systems, which often required a full-time specialist to manage, a hosted PBX can have features (call forwarding, voicemail to SMS, caller ID, etc.) turned on or off on a per-line basis from any internet-connected device. New lines and phones can be added with ease.
  • Total Reliability
    • Traditional PBX systems – tied to a landline and requiring physical connections – were prone to connectivity issues. However, a hosted PBX is not dependent on any physical connections. Thanks to interconnected data centers, redundant back-ups, and decentralized cloud-based architecture, a hosted PBX can always be accessed.

Selecting A Hosted PBX Provider

Just like with selecting an ISP or cellular network, it is important to carefully consider which hosted PBX provider is best for you. What factors are important to keep in mind during this selection process? Below are a few of the most important things to consider:

Hosted PBX System is an acronym for Private Branch Exchange
  • Upfront and ongoing costs
  • Quality and price of continued support
  • Reputation for up-time and call quality
  • Conformity to data security standards such as HIPAA, SOC, and, PCI
  • Features offered
  • Number and locations of data centers


Once everything is tallied, the choice for most organizations is clear – a hosted PBX is the best choice for nearly anyone’s telephony needs.