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What is a Hosted PBX Anyway? | WhichVoIP

A PBX, or Public Branch eXchange, is the hardware that is used to route incoming phone calls to multiple extensions. When a company moves to a Voice over Internet Protocol (VoIP) platform to enjoy the flexibility and cost advantages afforded by that technology, the old PBX must be replaced with an IP PBX, or alternately, a hosted PBX.

In a hosted PBX environment, the hardware is no longer on premises, and the call routing is done through a service hosted by a third party. The actual hardware is housed and managed in the provider's data center. Traditionally, a PBX delivers a variety of services; besides routing calls, it is used to manage voicemail, conferences, and transfers. The hosted PBX is no different, and in fact, it often delivers services that the traditional PBX cannot.

Hosted PBX for Small Businesses

A hosted PBX is a perfect solution for a smaller business, because it eliminates much of the management overhead and expense typically associated with managing a physical PBX. Also, a hosted PBX solution gives the user constant access to the latest hardware and software, with seamless upgrades and negligible upgrade costs—giving small businesses with small budgets access to high-end, big business technology. Finally, a smaller business can enjoy competing on an even playing field with much larger ones, since the hosted PBX allows for the same call routing and auto-attendant features that are commonly in use by much larger companies.

In many cases, a hosted PBX can deliver services that are not even available on a much more expensive traditional customer-premises PBX. Depending on your hosted PBX provider, you may be able to access features such as incoming fax management, call conferencing, and queuing, all without the management burden that would otherwise be shouldered through a traditional PBX.

Hosted PBX for multiple locations

The hosted PBX service also makes it possible to facilitate a "virtual company" model, where multiple phones in different locations, branch offices, or telecommuters' homes can all be combined into a single "virtual office", each one with its own extension of the main phone number, regardless of geographic location.

Typically, a hosted PBX is also highly scalable, and allows a small business to grow with ease, without the headaches of having to upgrade to new hardware. Adding additional lines is quite simple, and even if you find that you need to move to a larger headquarters, the service follows you transparently without any need for a major re-installation. In some hosted PBX services, you may even have the ability to have your phone extension follow you while you travel.

When comparing hosted PBX options, compare prices and features in detail. Look for a service that offers a high degree of reliability, and a redundant data center with automatic failover to keep downtime to a minimum. Billing options can also vary a great deal. Beware of hidden costs such as "double-leg" billing, which bills you both for the inbound call to your main phone number and also for the outbound call to your extension.

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