Hosted PBX - Where is it? | WhichVoIP

Where is the Hosted Hosted PBX?

Hosted PBX offerings have become very attractive, especially to smaller businesses that may not have the personnel or resources to install and manage the equipment in-house. This brings up the question though, of where the equipment is physically located. The business is receiving services, they have a working phone system with multiple extensions, but there is no central PBX on site. Where is it?

In a typical on-premises configuration, the PBX—which is the routing mechanism that directs calls to different extensions—is a piece of hardware typically located in a back room or in a wiring closet. When you have a phone problem, your IT guy opens up this closet, fiddles with the mass of wires and equipment in there, and hopefully, solves the problem. In a hosted PBX scenario, that on-premises scenario is eliminated.

Hosted PBX Application

Hosted PBX is just like any other type of hosted application. To use an example, many people take advantage of free Web-based email from companies like Google, Yahoo or Microsoft. When you use your Gmail account, you don't have an email server in your home or office, you are just accessing the email server at Google's substantially large headquarters. In a hosted PBX offering, the equipment is located at the hosting facility that is maintained by the company that sold you the service. When you get a phone call, that call is actually coming into the service provider's facility, and it is then instantly routed to your office; there are therefore two separate "legs" for each phone call made or received. Typically used in a VoIP offering, hosted PBX services place an IP PBX in the hosting center, and it interoperates with the company's equipment on-site through a secure connection.

The hosted PBX option is ideal for smaller businesses, but some larger enterprises with multiple sites may also adopt a hosted PBX model on their own. In this case, the enterprise hosts its own PBX, locating it in a data center, and then establishes the secure connection themselves to each branch office.

The greatest advantage to the hosted PBX of course is lower cost, followed by easier upgrades and expansion. By outsourcing the management, the user does not have to maintain in-house expertise. Furthermore, besides day-to-day management, the user of the hosted PBX system can more easily expand as needed, without having to bear the burden of constant upgrades.

Additionally, a hosted PBX system may allow the user to access more advanced features and functions. The basic function of the PBX is routing calls, but a higher-end system—which would cost a lot more if it were to be located and managed in-house—also handles things like voicemail and fax, conference calling, recording, integration with computer programs, and call escalation. Using a hosted service, it is much easier for a smaller business to take full advantage of these advanced features without having to bear the significant cost that would be required for an in-house solution.

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