Hosted PBX Systems | Types, Benefits & Comparison

Adam Danil
4 min readMay 11, 2023

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What is a hosted PBX system?

A hosted PBX system is a type of phone system that is delivered and managed by an outside provider over the Internet. It allows you to make and receive calls using your business phone number across multiple devices, such as desk phones, smartphones, or computers. A hosted PBX system also offers various features such as voicemail, call forwarding, call recording, extension dialing, and video conferencing.

A hosted PBX system can be beneficial for your business because it can reduce the cost and complexity of installing and maintaining a traditional phone system. It can also provide you with more flexibility, scalability, and convenience, as you can easily add or remove users, access your phone system from anywhere, and enjoy reliable service from the provider.

What are the benefits of Hosted PBX in Business?

  • Making remote work easy: You can use hosted PBX to communicate with your employees who work from home or in different locations. They can access the same features and extensions as if they were in the office.
  • Saving money: Hosted PBX is more affordable than traditional phone systems because you don’t need to buy or maintain expensive hardware. You also pay only for what you use and can scale up or down as needed.
  • Improving efficiency and productivity: Hosted PBX provides advanced features such as voicemail transcription, CRM integration, conferencing, call forwarding and more. These features help you streamline your workflows and collaborate better with your team and customers.
  • Enhancing security: Hosted PBX uses encryption and authentication to protect your data and calls from unauthorized access. You also get backup and recovery options in case of emergencies.
  • Providing data analytics: Hosted PBX gives you access to detailed reports and statistics on your call activity, performance, quality and usage. You can use this data to optimize your operations and improve customer satisfaction.

How reliable is hosted PBX?

Hosted PBX is generally reliable, as it uses the internet to connect your phones to a service provider’s network. However, the reliability of hosted PBX depends on several factors, such as:

  • Your internet connection: You need a stable and fast broadband connection to ensure good call quality and avoid interruptions or delays. You may also need to upgrade your routers, switches and firewalls to support VoIP traffic.
  • Your service provider: You should choose a reputable and experienced provider that offers high availability, redundancy, backup and recovery options for your hosted PBX system. You should also check their service level agreements (SLAs) and customer reviews to see how they handle downtime, maintenance and support issues.
  • Your network security: You should protect your hosted PBX system from cyberattacks, such as denial-of-service (DoS), eavesdropping or spoofing. You should use encryption, authentication and firewall features to secure your data and calls. You should also follow best practices for password management, user access control and network monitoring.

Is hosted PBX the same as VoIP?

No, hosted PBX and VoIP are not the same thing, but they are related. VoIP stands for Voice over Internet Protocol, which is a technology that allows you to make and receive phone calls over the internet instead of using traditional phone lines. Hosted PBX is a type of phone system that uses VoIP technology to connect your phones to a service provider’s network in the cloud. Hosted PBX is one of the options you have when you want to use VoIP for your business communications.

You can also use on-premises PBX, which is a phone system that uses VoIP technology but is installed and managed by you in your own location. Or you can use SIP trunking, which is a service that connects your existing on-premises PBX to the internet and enables VoIP features. In this context, a human might say that hosted PBX is a subset of VoIP, but not all VoIP systems are hosted PBX.

What are the advantages and disadvantages of on-premises PBX and SIP trunking?

On-premises PBX and SIP trunking are two different ways of implementing a phone system using VoIP technology. On-premises PBX is a phone system that is located at your business premises and connects to the Internet through a broadband connection. SIP trunking is a service that allows you to use your existing on-premises PBX and connect it to an Internet telephony service provider (ITSP) through a virtual phone line called a SIP trunk.

Some of the advantages and disadvantages of on-premises PBX and SIP trunking are:

  • On-premises PBX gives you more control over your phone system but also requires more upfront investment, maintenance, and technical expertise.
  • SIP trunking allows you to leverage your existing PBX hardware and access advanced VoIP features, but also depends on the quality and reliability of your Internet connection and SIP provider.
  • Hosted PBX, which is another option, eliminates the need for any on-premises equipment and is managed by a third-party provider, but also involves monthly fees and less customization.

The best option for your business depends on your budget, call volume, scalability needs, and desired features.

If you are looking for the best Hosted PBX System Service Provider in Perth, you can contact Commandacom.

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Adam Danil
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"Hi, it's Adam here. I invite you to join me on Medium to discuss the various options available for business communication systems .