Hosted PBX vs Traditional PBX: Why Smart Businesses Are Switching

Businesses rely upon hosted PBX services rather than traditional PBX services to cut costs and get access to better telecommunication features that unify the workforce. Hosted PBX is a Private Branch Exchange hosted at a remote location by a third-party service provider. It allows users to make and receive calls via the Internet, and its features have made it a very popular alternative to traditional PBX.

Hosted PBX is a Private Branch Exchange hosted - Ariatech 

TRADITIONAL PBX Vs HOSTED PBX

Traditional PBX is also known as on-premise PBX or analogue PBX, and it works with the help of physical hardware like copper telephone wires, on-site hardware and a dedicated IT team.

On the other hand, hosted PBX sends voice traffic via the Internet and it is known for its high-quality communication that is delivered with a high-speed Internet connection. VoIP phones or soft phones are used rather than traditional desk phones.

Hosted PBX sends voice traffic via the Internet - Ariatech 

Significant differences between on-premise PBX and hosted PBX are listed below.

ON-PREMISES PBX

  • On-site hardware and software
  • No use of the Internet for telephony
  • High initial setup costs
  • Requires IT staff
  • Expensive to scale
  • More control over the PBX system
  • Basic calling features

HOSTED PBX

  • Infrastructure is managed by the provider via the Internet
  • Relies on Internet connectivity
  • Minimal setup costs
  • The provider handles maintenance
  • Easy scalability
  • Hand over control to the service provider

Additional calling features, such as interactive voice response (IVR) and automatic call distribution (ACD) systems, can be included.

HOW DOES HOSTED PBX WORK?

Hosted PBX employs IP (Internet Protocol) for communication, and the calls are delivered over the IP network rather than the physical lines. The voice traffic is transported over the PSTN with the help of a VoIP phone system or a combination of both. This hosted PBX system comes with numerous benefits for businesses, and we have covered some below.

Hosted PBX system comes with numerous benefits - Ariatech 

BENEFITS OF HOSTED PBX PHONE SYSTEM

More and more organisations are switching from traditional on-premise PBX to hosted PBX due to benefits like increased flexibility, cost savings, a more secure network, and other features.

LOW-COST SETUP

Hosted PBX has very low upfront expenditures related to hardware, licensing and setup. This means hosted PBX is more cost-effective than a traditional PBX system or any other communication technology.

Hosted PBX has very low upfront expenditures - Ariatech 

OPERATIONAL COST IS ALSO VERY LOW

Another feature of hosted PBX is that you pay a flat per-minute or monthly rate rather than paying for the number of phone lines you use. The operational costs are very low, and organisations also save on maintenance costs as there is no need for a dedicated IT staff for maintenance and upkeep.

 

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