What is Hosted PBX?


Unlike a traditional PBX, or Private Branch Exchange, which requires a large investment and ongoing maintenance and training, a hosted PBX is a cloud-based PBX system accessible via an IP network. Rather than being responsible for hardware, software, training, maintenance, and more, a hosted PBX provider takes care of it all. In addition to being completely managed off-site, resulting in no IT or installation costs, a hosted PBX system also provides businesses with the ability to manage their phone systems via a user-friendly control panel. For these reasons and more, hosted PBX systems are becoming increasingly popular solutions for today’s growing small to medium-sized business owners.

Features and Benefits of Hosted PBX
If you own a business with fewer than 300 lines, hosted PBX can provide you with a multitude of features and benefits. For starters, a hosted PBX system is much less expensive than a traditional on-site system. With hosted PBX, there is no need to buy expensive hardware and software, pay for installation, and manage the system. You simply pay a monthly fee and enjoy all of the benefits of the service.

While less costly than standard on-site PBX systems, hosted PBX solutions are teeming with valuable features, such as on-hold music, call waiting, call routing, transfers, and more. Moreover, as the popularity of hosted PBX continues to grow, additional features like auto attendants, extension dialing, and ACD queues are being introduced.

A hosted PBX can also be deployed immediately. In fact, most business owners are able to have their hosted PBX setup and running in under a day. Best of all, newer and more flexible hosted PBX applications are being deployed as well. Adding these applications and features can typically be done with a simple download or click of the mouse.

The ability to add new features as they roll out is just one example of the scalability of hosted PBX. Additional lines, phones, and even an entire new department can effortlessly be added, which would be much more complex with a traditional on-site PBX.


When you opt for a hosted PBX and outsource all the techie stuff, you will find your stress levels lowering as well. With a hosted PBX, a mountain of responsibility will be taken off your shoulders, allowing you to focus your attention on more important matters, like improving your bottom line.

Hosted PBX Tips and Considerations
Hosted PBX systems are incredibly easy to setup and utilize, but there are a few things you need to do when opting for one of these modern business phone solutions, such as:

Make Phone Number Arrangements – A temporary phone number is necessary for the porting process, but if you already have an existing number to port over, you must remain with your current provider until the number is ported to your new PBX provider. If you are getting a new number, it’s important to update others and let them know of the change through an email blast or similar means. While brief, all calls can be conveniently routed to cell phones during the transition period. Just remember, if you cancel your service with your previous carrier prior to porting your number, the number will no longer be yours to keep.

Arrange Your Dial Plan – When switching over to a hosted PBX, organizing the routing of your calls is one of the first things that must be done. In order to do so, you’ll need to define various rules for your calls, including:

  • The buttons used to activate voicemail and other features
  • The hours of operation for your desk phones
  • Setting up your directory
  • The handling of faxes
  • Sequential and simultaneous ringing
  • How off-hour calls are handled
  • Configure your emergency no. settings
  • Review Your Bill

As you can see, setting up a hosted PBX is remarkably easy. However, after doing so, you should review the bills for the first and second month to ensure you’re receiving and utilizing all of the services you’re paying for. Depending on which company you choose as your hosted PBX provider, the first month’s bill may or may not reflect activation fees, setup fees, and number porting fees. The second month’s bill should be a typical bill without added charges for the setup process. By this point, you’ll be well on your way to enjoying one of the most streamlined and hassle-free business phone systems available for small and medium-sized business owners.

Hosted PBX is a service where the call platform and PBX features are hosted at the service provider location. The business end users connect via IP to the provider for voice service.

“Hosted” means to say that the hardware and PBX is hosted at an off-site location from where the VoIP telephone service is being used. An office can have VoIP telephone service that powers their phones in the office, but their PBX could be hosted at their VoIP provider’s data center, thus the term: hosted PBX. Hosted PBX is also sometimes referred to as Hosted VoIP.

Benefits of Hosted PBX
There are many benefits to using Hosted PBX rather than a traditional phone system, or an on-premise PBX. The main benefit is cost- a Hosted PBX system costs much less to set-up than an on-premise PBX. In many cases, there are no set-up fees for a hosted PBX system. Purchasing and setting up an on-premise PBX can cost tens of thousands of dollars. Hosted PBX phone systems fall under operational expenditure rather than capital expenditure, which also makes hosted PBX service attractive to businesses. With hosted PBX service, you pay a monthly fee, and the hosted PBX service provider takes care of the rest.

Another benefit to a hosted PBX system over an on-premise PBX is that hosted PBX service providers will take care of all the set-up and installation, meaning you do not need to be a telecom or VoIP expert in order to get a hosted PBX system. A downside to a hosted PBX is you may have a little less of an ability to customize your solution to your business, but many hosted PBX service providers can achieve a deep level of customization.

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