A hosted PBX is a PBX that is hosted in the cloud by a VoIP provider. 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.