Hosted PBX, also called hosted VoIP, is an internet phone system in which the provider houses the IP PBX at their location and looks after all of the technology necessary to run your phone system. Your business telephones are plugged into a router and this router connects them to your provider. All calls, signalling, and features are handled through an IP PBX server which is located at the provider’s location.

Click on the following sections to learn more.

1. Hosted PBX vs PBX?
2. Hosted PBX vs On-Premise PBX
3. Hosted PBX vs Hosted IP PBX
4. Hosted IP PBX vs Cloud PBX
5. Advantages and Disadvantages of a Hosted PBX
6. Where Can You Get a Good Hosted IP PBX Provider?

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Learn more about a hosted PBX system

Hosted PBX

1. Hosted PBX vs PBX

PBX: Let’s your business have one external number

PBX stands for Private Branch Exchange. It is a system developed to let businesses handle their own internal and external telephone calls. A PBX system allows your business’s telephone system to have one external number or line for the outside world that all of the internal lines access.

It gives you a way for all of your internal lines to be connected together. Calls can be transferred and made within your organization without each telephone requiring its own individual outside line. Instead, each user will have their own 3 or 4 digit extension.

PBX works like a bridge:

A PBX acts like a bridge between the phone lines you have and the actual phones you have. It works similar to a power bar that you may have in your home. The power bar takes power from one outlet and then lets you plug in several different electronics.

A PBX works on the same principal. It allows you to have more phones than phone lines, and it also allows free calls between your internal users so that several people can be using the phone line at the same time. It also provides features like transferring, voice mail, call recording and more.

PBX lets businesses handle their own internal and external telephone calls

2. Hosted PBX vs On-Premise PBX

On-Premise PBX is located at your facility:

On-premise refers to where your PBX is located. The first PBX systems were owned by and located at the businesses that were using them. Due to them being located on the business’s premises, they were referred to as on-premise PBX.

It is very expensive to own, run and maintain your own PBX system, so only very large businesses were able to do this. Initially all on-premise PBX systems worked with traditional landlines. However, with the development of IP telephony, you can also have an on-premise PBX system that used the internet to make your phone calls. This is known as IP PBX. IP PBX systems can be either on-premise or hosted.

Hosted PBX is located off-site:

Hosted PBX provides a more cost-effective way for other businesses to enjoy the advantages of a PBX system at a lower cost. This technology was made possible by the ability to use the internet to make phone calls. A PBX service provider would purchase and maintain the equipment necessary to run a PBX system and your business could connect to their equipment via the internet. Your service provider was the host for the equipment and unlike on-premise PBX, you neither own or house your own equipment. All calls, signalling, and features are handled through an IP_PBX server which is located at your provider’s location.

Advantages of IP PBX vs PBX:

The biggest advantage of the IP PBX is that you can almost have an unlimited number of extensions and trunks so you are not restricted when you need to increase the size of your system.

IP PBX also allows you to have more complex features that would be very expensive if you had them implemented on a traditional system such as:

• Automated receptionist
• Reporting
• Ring groups
• Unlimited voicemail
• Call transfers to a mobile device

Learn more about a hosted PBX system

3. Hosted PBX vs Hosted IP PBX:

Hosted PBX and hosted IP PBX refer to the same thing. IP stands for internet protocol. A hosted IP PBX phone system uses the internet to make and receive phone calls instead of traditional landlines. This type of phone system may also be referred to as VoIP (Voice over internet protocol).

In order to use the internet for your calling, you need special phones known as IP or VoIP phones that use digital signals instead of analog like traditional phones do. Many businesses have switched their phone systems to VoIP so you may find that the term ‘hosted PBX’ is actually referring to a ‘hosted IP PBX’ and that the IP has just been dropped.

IP phones use the internet to make calls

4. Hosted PBX is slightly different from Cloud PBX

The terms Hosted PBX and Cloud PBX are sometimes used interchangeably, however, there are slight differences. Both services allow you to:

• Outsource your infrastructure and maintenance
• Use a per-user, per-month pricing model
• Have geographic independence
• Be provided with disaster recovery
• Easily scale your system

Hosted PBX uses IP protocol:

With a hosted PBX service, the call platform and PBX features are both hosted at your service provider’s location and your business connects to these services using an IP (Internet Protocol) which connects the user to your provider for service.

Cloud PBX uses the internet:

A cloud PBX is based on cloud computing technology, so your calls are transferred over the Internet rather than through a computer or hardware device at your service provider’s location.

Hosted IP PBX and Cloud PBX are very similar

5. Advantages and Disadvantages of a Hosted PBX

Here are some of the great advantages of a hosted PBX:

• You have few set-up costs including purchasing IP phones.
• Your provider will handle any new feature installations
• It is very easy to choose and cancel virtual phone numbers
• It is very easy to move your phone system as each IP phone is simply plugged into a broadband connection
• Your provider will look after installing any patches or upgrades to the IP-PBX
• In case of a catastrophic event or loss of internet, your business calls will be sent to voice mail or to a mobile phone so that your business operations will not be adversely affected

Here are the disadvantages of a Hosted PBX:

• Voice quality and connection can sometimes be poor as they are affected by your internet connection
• If your Internet goes down, so does your phone system
• Depending on your provider, you may find that getting your features customized may be slow
• Monthly fees may increase and there may be cancellation fees.

Hosted IP PBX has many great advantages

6. Where Can You Get a Good Hosted IP PBX Provider?

There are many different hosted IP PBX providers to choose from, however, not all providers are the same. It is important to choose one that is going to give you the best service possible. Your phone system is the lifeline for your business or organization so make sure that you find a provider that has:

• Extensive experience
• Great reputation
• 24/ Technical Service

Network Telecom Is a Hosted IP Service Provider You Can Trust

If you are looking for the best hosted IP PBX provider, contact Network Telecom. We have been selling, installing, and servicing every type of phone system for over 40 years.

We can even help with training you and your employees on the features of your new phone system so that you can all use it efficiently.

If your phone system is not working as it should, our trained technicians are available to help 24 hours a day, 7 days a week, 365 days a year. We carry a huge selection of parts in order to quickly solve any component issues that you may be experiencing.

In addition to our accredited and certified technical expertise, we offer:

• Consultative Sales
• Cloud Services
• Ongoing Support
• Voice Mail Systems
• System Design + Consulting
• System Admin + User Training
• PA Systems
• VoIP Specialist
• Network Cabling