A Private Branch Exchange (PBX) is hardware or software that divides phone lines into extensions for each employee to use. When someone calls a company’s main phone number, the PBX connects the call to the designated employee’s extension line.
A hosted PBX differs from a traditional PBX in three ways:
- A hosted PBX uses Internet phone service instead of traditional analog phone service.
- A hosted PBX is “hosted” off-site by the service provider. There is very little to none in-house equipment for the company to maintain.
- A hosted PBX translates all incoming and outbound calls into Internet calls, so both internal and external calls are cheap Internet calls. This makes a big difference on the monthly bill.
Hosted PBXs are an increasingly popular choice for businesses. A hosted PBX systems provides all of the benefits of cheap VoIP phone service, which eliminating the hassle of in-house maintenance. As an added benefit, a hosted PBX's cloud-type technology is an excellent fit for companies with telecommuters. Employees can tap into the office phone's network from home or on the go.
Benefits of a Hosted PBX system
Aside from the off-site nature of a hosted PBX, there are multiple reasons why choosing a hosted PBX service plan is a great choice for your business:
- Cheap Internet internal and external calls
- Scalable to accommodate business growth
- No hassles, no troubleshooting, no updating
- Service providers keep security and encryption features up-to-date
- Virtual office capabilities for real-time collaboration by out-of-office employees
- Abundant VoIP Features like call recording, call forwarding, music on hold, virtual numbers, unlimited calling, call logs, auto attendant, and enhanced voicemail.
Compared to legacy, premise-based systems, hosted PBX systems are much more affordable. PBX hardware can cost thousands of dollars, which is not a viable option for many small businesses. Medium-sized businesses can save up to a few thousand dollars on their phone system.
Owning PBX hardware also means configuring, securing, maintaining, upgrading, and troubleshooting it in-house. Hosted PBX systems are completely managed by a service provider. Hosted PBXs are fully scalable, meaning you can easily add or reduce the number of extensions on your plan. Hosted PBXs make it easy for companies to save money, while allowing quick growth as the business expands