What Is PBX Hosted Telephone System and How Does It Work?

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When we talk about telecommunications, many wonder what a PBX-hostedtelephone system or PBX hosting is. The truth is that marketing techniques increasingly invite you to create terms that your target can easily remember. PBX is the acronym for “Private Branch Exchange.” Well, we agree that it is easier to remember.


Once we know what these acronyms mean, it is easier to deduce what a PBX is about. This automated telephone system allows you to manage the company’s private telephony, that is, the gateway, distribution, and exit of telephone calls with local telephone numbers within the company.


The PBX-hosted telephone system has inspired marketers to start using this term. Curiously, a term that includes all types of switchboards is used to differentiate IP switchboards, which offer such superior features. Let us remember that this type of switchboard is the one that uses the Internet to transport the voice.


How does the hosted telephone system work?


As the technology is so different, it allows telephones to be used in different systems, and the limitation of the number of devices connected to the same switchboard can become unlimited. On the Internet, you can find a lot of information about how these switchboards work.

Now that you know what PBX is find the one that suits you best. Do you want to start with the PBX hosting?


The evolution of PBX systems

The first PBX telephone automated system required human drivers and was also called switchboards. When an external call comes into the business, the caller can ask a department or a specific person, and the operator will contact them. Similarly, if an employee wishes to make a call, the operator will connect them to an available external line. If an organization has a high volume of calls, it will take dozens of operators to handle all the calls.



What is PBX hosting?


A Hosted PBX, also known as Cloud PBX or Virtual PBX, is a PBX or Telephone System delivered as a hosted service in the cloud. The main advantages of PBX hosting for companies are eliminating installation, operation, and maintenance costs “at home” (on-premise) of their IP PBX since the VoIP Service Provider hosts it for them.


As the evolution of VoIP Telephony continues, many companies must decide which solution works best. There are two ways to implement a Phone System of this type: a solution hosted in the cloud or locally or on-premise.


An on-premise (local) solution is an IP-PBX installed on a local server in the company. For SMEs, there are options such as a low-cost Mini-PC to avoid investing in a server if they do not have one to be used on a dedicated basis. 


Having a local Telephone System has certain advantages, such as keeping full control of your system. However, the downsides are increased maintenance and associated hardware cost. If you want to avoid using dedicated equipment and valuable resources from your IT department or if you don’t have IT staff, then Cloud Hosted PBX hosting is the solution.

PBX hosting allows businesses to fully utilize and leverage their phone system features such as voicemail, fax, IVR, conferencing, and mobility. In addition, companies that offer this type of Service (UCaaS) usually also have call termination and routing, so everything is included in the Cloud service of a hosted PBX.


On-premises or hosted telephone system


The PBX telephone automated system can be presented at the organization’s office (on-premises) or at the service provider (offered). Although the terms local and PBX became popular with the advent of VoIP, the concept exists even for landlines.


Advanced companies typically purchased and maintained their own PBX solutions, while smaller companies could opt for the hosted telephone system. This meant that the PBX would be at the service provider’s office, thus relieving the customer of the hassle of maintenance.


The PBX offered today has a different meaning than the original center exploration. It is also called cloud PBX as the service provider provides all the functions to various customers. Principally, it suits a software as a service (SaaS) similar to email or production software.


Analog to IP-PBX telephone system


The first PBX telephone systems were analog machines and had to be manually operated by one person. The boxes are designed to work with the circuit breakers that form the backbone of the PSTN. The copper lines connected the PBX to the public network, and the connections had to be physically connected by company technicians.


There are three ways of operating a Hosted PBX; either through the traditional Telephone Network (PSTN), through the Internet (Hosted IP PBX through Internet Telephony or Voice over IP, VoIP), or through a combination of the two.