Hosted PBX Explained

By June 28, 2018 September 6th, 2018 No Comments

A Hosted PBX system delivers an internet-based call routing service that is created, delivered and maintained by a third-party provider. Virtually the same features available with a traditional telephone service are available through a hosted PBX telephone system, but without any of the hassle and at a fraction of the cost.

The premise of hosted PBX is simple

When calls are sent or received through the system, the provider uses the internet to route the business client’s incoming and outgoing telephone calls.

Since the third-party service provider creates the PBX system at its own site that is also where any equipment is housed and any maintenance issues are resolved. That means the business consumer is provided with a virtually hardware-free telephone system so there is no need to contend with the hassle of technical issues associated with traditional PBX telephone systems. Aside from the worry free aspect, there are many other additional benefits associated with the implementation of a hosted PBX telephone system.

Benefits of Hosted PBX


Mobility is a major perk of hosted PBX systems. Since the calls run through the internet, employees can place and receive calls from virtually anywhere, and a handheld phone isn’t always even necessary. Since PBX systems work using softphone programs as well, employees can be reached anywhere there is a reliable internet connection.

Saves You Money

A major benefit of implementing a hosted PBX telephone system is the upfront cost savings. Since there is no hardware to install, and the system runs through existing telephone lines, the upfront price point is nominal compared to the installation of a traditional system.

Another benefit is the ongoing cost savings. Companies that provide hosted PBX services offer different features and packages, but the rates are significantly lower compared to the traditional options. Tied into that is the fact that, with hosted PBX, there is no need for a business to hire or divert staff to provide ongoing maintenance for the telephones.

Quick and Easy Set Up

The quick initial set up is also a perk of choosing a hosted PBX system since no one from the PBX service provider needs to visit the business site to install hardware. The setup is as easy as installing software, and no technician is required.

More Scalable Than Traditional Systems

Hosted PBX services are also more easily scalable than traditional telephone systems. With a traditional package, there is a limit to how many users can be accommodated based on the number of lines purchased from the telephone company. A virtual hosted PBX does not have the same restrictions. It grows seamlessly with the business.

More Features

The available features are also a draw. Hosted PBX systems offer the same features as traditional PBX and standard telephone systems, but there are also features available that are exclusive to hosted PBX systems. Here are just a few:

  • Click-to-call widget:

    This feature allows customers who are on a company’s website or social networking page (ex: Facebook) to call them directly by simply clicking the widget that appears on the screen.

  • Voicemail to Email:

    Many PBX service providers offer an option that transfers voicemail to email. This allows employees to receive their messages even when they are away from their phones.

  • Performance tracking:

    Businesses are able to generate reports that track calls, including date and time, number of incoming and outgoing calls, and duration of calls. This helps monitor employee performance.

  • Record calls:

    Key for customer service quality, hosted PBX services are able to record calls that can be easily retrieved from anywhere there is an internet connection.

  • Easy customization:

    A business can easily set up customizable greetings and voicemail, department ring tones and hold music, call monitoring, company directories, and telephone access hours, among other features.

For small businesses that want to present a professional image to clients without spending a fortune doing it, hosted PBX is the way to go. A hosted PBX telephone system offers nearly endless benefits with none of the hassle of traditional telephone services. It also comes at literally a fraction of the cost.


Author Digitcom

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