In this blog entry, the professional TriState area commercial telecommunications and network solutions service team here at QTech will detail the important things to know about hosted PBX systems, and the ways that your business can benefit from implementing these easy-to-use networking systems to connect your team with your customers at a fully scalable level.
What exactly is hosted PBX?
Hosted PBX is a cloud-based phone system that allows you to manage your business calls without the need for complicated physical equipment located at your business location. Different from traditional PBX systems that require a range of specific hardware, hosted PBX systems are managed by VoIP providers over the internet. The cloud services of hosted PBX can handle all of your business’s voicemail, call-routing, chat, and other functions over the internet instead of over a local network, greatly reducing the costs of hardware and IT maintenance, and enabling your employees to work remotely without being locked to a single physical location. Hosted PBX systems allow your company to benefit from a range of high-end telephony features with no need for an on-premises system.
What are the main differences between Hosted PBX and On-Premises PBX?
Hardware Locations
On Premises PBX- Located at the property of your company, requiring special installation procedures
Hosted PBX– Located at a remote data center maintained by service providers, removing your need to pay for maintenance and hardware
Maintenance
On Premises PBX- You will be required to maintain and update the PBX system software and hardware either through internal IT procedures or by paying an external source
Hosted PBX- Your service provider will handle all maintenance and updates to the PBX system hardware and software, allowing you to focus on other aspects of your business
Cost
On Premises PBX- Hardware, software, license, and installation costs are high, as well as costs for ongoing maintenance and system updates
Hosted PBX– Cost will be priced according to monthly subscriptions, making it easier for you to manage your budget. Zero initial hardware and software costs, and updates / maintenance is included in the subscription price
Scalability Options
On Premises PBX- Available to scale according to business growth, but will likely require extra hardware and software purchase costs
Hosted PBX– Hosted PBX systems are easily scalable with the provider, with additional resources being added by them to remove the responsibility from you
Special Features
On Premises PBX– Offers features like voice mail, voice calls, video conferencing, and more
Hosted PBX– Includes all advanced features of on-premises PBX systems, and more, like CRM and collaborative tool system integration with zero need to invest in extra hardware or software
How do hosted PBX systems work?
Hosted PBX systems use IP technology to transmit voice communications using VoIP service. Phone systems will be routed to VoIP providers, with VoIP desk phones replacing traditional landline phones. All functions of calls and PBX like routing, recording, and conferencing will be managed by the cloud-based VoIP service, with call info transmitted over an IP network to the provider’s cloud server, and then routed securely to any type of telephone network, including other people’s PSTN local networks. Users can easily manage all call functionality and system settings through online portals accessible through internet browsers, greatly simplifying the management of phone systems and allowing employees and operators to manage it with any SIP-enabled device. This helps you drastically reduce costs and improve operational efficiency by removing the need to pay for and maintain complicated physical hardware.
