A Hosted solution offers many more features than physical phone lines or a premise-based solution and is much more cost-effective, so a growing number of businesses are implementing them. If you’re thinking about doing so for your business, it is important to understand exactly what a hosted PBX system is, how it operates, and the pros and cons.
A PBX system is a business-class telephone system that enables communication both within and outside your organization. This system is different from residential or cell services in that it has additional service offerings, which usually include Interactive voice response (IVR), call conferencing, extension dialing, business-hour settings to route off-hour calls, customer waiting queues, and hold music.
Hosted PBX, is an IP-based PBX solution that’s provided and accessed completely through the internet. Instead of hosting hardware and software on-premise the way in-house PBX systems do, hosted PBX hosts all hardware, software, and data in the cloud.
• A hosted PBX system is a cost-effective business phone system option.
• Hosted systems offer a wide selection of valuable features and reliable service.
Hosted PBX phone systems have become gradually popular in recent years. The ability to add a robust and scalable phone system with all of the features and tools you need, without having to install or maintain any equipment, is particularly attractive to many businesses.
Hosted PBX vs. Traditional PBX
Hosted PBX is a technology extract of traditional PBX which is provided in a more reliable and cost-effective package. The difference in these systems is on the level of functionality, where they are located, and how it is maintained. Another major component that sets them apart is the cost. The traditional PBX involves procurement of PBX equipment, having a dedicated room to host the equipment, have an IT staff to maintain the system, and many times paying a technician to do upgrades. In recent years, we have seen many PBX manufacturers have stopped upgrading their system, or changing the system to a whole new technology, in a way making on-premise PBX infra unusable.
On the other hand, hosted PBX is an Op-Ex model that can be setup quickly without adding any expensive hardware or software to your existing infra. The only requirements for a hosted PBX are an internet connection and a VoIP phone. Since the PBX is hosted, the customer saves on maintenance cost and doesn’t need an in-house technician to manage telecommunication equipment.
How does Hosted PBX work?
A hosted PBX shifts your phone and communications infrastructure over to a secured PBX provider. Instead of individual phone extensions, each phone is replaced with a VoIP desk phone. The PBX provider is responsible for both hosting your PBX system and provide the telecom services. Your desk phone connected to the hosted PBX over the internet, and all the calls and other features are managed by the hosted PBX at the provider’s location.
What are the cons of hosted PBX?
While the hosted PBX seems to be a great solution to most of today’s business telecommunication needs, however, it still requires a stable internet connection to run the whole show. The internet speed these times is pretty good and is stable but adding an extra internet connection will eliminate the times when the internet is down and keeps the business communication up.