What is Hosted PBX? What is Hosted VoIP?
Hosted PBX, Virtual PBX, and Hosted VoIP all refer to the same thing. A Hosted PBX is a service that allows routing of voice communication by hardware that does not physically reside at the location where calls are being made and received. Thus, the hardware that routes calls for your business is "hosted" by a service provider. Hosted VoIP is a related and synonymous term because Hosted PBX requires voice communication to come over an internet line (not a phone line).
In layman’s terms, it takes some technology to properly route phone calls when they come into your business. That technology used to be a physical box at your location, and in some cases still is (prior to this, you had a human operator routing calls by plugging and unplugging cords). Thanks to the internet, you don’t need to worry about that box because it’s owned and maintained by a service provider. You use the hosted PBX via the internet, in much the same way you don’t need to have a server in a closet to house your digital files. Nowadays you can access them remotely, using the internet with a system and environment that is commonly called “the cloud.”
Benefits of Hosted PBX
So, what makes Hosted PBX so great? As described above, you don’t need to have hardware on-premise to get the features that come with it, like call routing, extensions, hold, call forwarding, etc. There are many other benefits of hosted PBX outlined below.
- Cost Savings – Physical hardware is costly to purchase and maintain. Hosted solutions allow you to cut those costs altogether.
- No Maintenance – Hardware is hosted off-site so you don’t need IT resources for an enterprise-grade phone solution.
- Scalability – Since these systems are virtual, it’s much easier to add lines and set up new branches, allowing you to pay for what you need and expand with growth.
- Work Mobile – When your phone system is virtual, you aren’t limited to the office. You can set up systems to route calls to cell phones and set up individual remote workers.
- Sound More Professional – Hosted VoIP includes features like call routing and forwarding, giving your business a more professional feel over the phone.
- User-Friendly – End-user management is done through easy-to-use web interfaces, reducing the need for specialized skills to monitor or change your system.
Is Hosted VoIP Right for My Business?
The availability and efficiency of a hosted PBX system is subject to variables, like the location of your physical address, how new your infrastructure is, and the speed of your internet connection.
In theory, hosted PBX reduces cost by eliminating the need to maintain physical hardware at your location; but every location is different. In some cases, an on-premise PBX system (not hosted) may be superior. If you don’t have a strong internet connection at your place of business, you may not be able to support a Hosted PBX system, which relies on VoIP (Voice over Internet Protocol). Since Hosted PBX relies on the internet to provide service, it’s only as strong (or weak) as your data connection and in cases of very poor internet - can’t be supported at all.
At MegaPath, we consult with you to find the right solution so there’s no risk of matching a weak data connection with a VoIP system that can’t handle it. In fact, if you use MegaPath for VoIP services and business internet, we can guarantee no downtime.