Hosted PBX

The acronym PBX for those unfamiliar with telecommunication lingo means Private Branch Exchange also known as a phone switch. A PBX basically connects phones in a private office to the Public Telephone Network. Companies with a private phone network have to rely on a PBX in order to connect to the outside world. A hardware PBX is typically purchased for this very purpose. However, there is also the alternative of "renting" a hosted PBX from a service provider.

Since the basic functions between on-premise PBX and hosted PBX are relatively the same, the main difference is in the way companies pay and use these PBX solutions. The typical features included in most PBX solutions whether hosted or on-premise are:

• Present a single business number that gives access to all company employees and departments
• Customized greetings or messages
• Provide menu of options
• Employee Directory
• Call routing and transfers
• and more...

So what are the advantages of a hosted PBX system over an on-premise system? A major advantage that is typically the reason of choosing a hosted PBX systems is the low start-up cost. Companies do not need to acquire expensive PBX equipment when they can just rent from a hosted PBX provider. Another advantage is the ability for companies to go live much faster with hosted PBX by not having to actually implement a PBX system in-house. Given companies "rent" Hosted PBX as a service, therefore they have virtually no support and maintenance cost. hosted PBX solution also allows companies who use it to easily add more users as needed without having to upgrade hardware or software.