What Is Hosted PBX?

Information About Technology

Core Definition

A Hosted PBX (Private Branch Exchange) is a telephone system delivered as a cloud-based service. Instead of housing the PBX equipment on-site, a service provider manages it remotely, allowing businesses to make and receive calls using VoIP technology over the internet.

Benefit Definition

Hosted PBX offers significant advantages for businesses. It eliminates the upfront costs and maintenance associated with traditional PBX systems. It provides access to advanced features like call forwarding, voicemail-to-email, and auto attendants. Additionally, Hosted PBX facilitates remote work and collaboration with its internet-based connectivity.

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Technical Definition

In a Hosted PBX system, the service provider’s data centers manage all the necessary PBX hardware and software. Calls are routed and managed using Voice over Internet Protocol (VoIP), which converts and transmits voice communications over IP networks. Businesses connect to the Hosted PBX using IP phones or softphones on computers and mobile devices.

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