What Is A Hosted PBX?

This guide will explore hosted PBX or Private Branch Exchanges. They are a common feature in many businesses as they provide a commercial phone system that can be used on multiple desktop phones without the need for numerous phone lines. A hosted system allows you to benefit from cloud connectivity without the need for expensive installations and hardware.

What Is A Hosted PBX?

A hosted PBX system is a cloud-based phone system that relies on an IP network to operate. As it is a cloud phone system, a virtual PBX is hosted by a third-party supplier as an alternative to a traditional phone system. Hosted PBX solutions are generally considered to be reliable, secure and affordable making them popular with businesses.

Many companies are choosing to upgrade to a hosted PBX system to future-proof their business communications. A virtual PBX also allows the infrastructure and hardware to be managed remotely, reducing the need for costly installations that come with traditional phone systems.

How Does A Hosted PBX Work?

Your hosted PBX service provider will manage and host your business communications systems through VoIP (Voice Over Internet Protocol) technology. However, this does mean that a cloud PBX heavily relies on a strong internet connection.

VoIP allows calls to be placed over an internet connection, via the cloud, rather than a standard phone line. Of course, you need VoIP desk phones to access a hosted, or cloud-based PBX.

The important part is that your PBX service provider will manage all of the hardware, including the server necessary to connect your calls externally. This is a fantastic solution for many businesses and set-up is generally fairly quick and easy.

Do I Need A Hosted PBX Service?

We have already covered some of the benefits, but a hosted PBX has many of the advantages of a traditional PBX, but with some additional plus points. Mobile phones are increasingly standard in many businesses, nevertheless, many customers and suppliers still want to be able to reach a traditional landline number.

A hosted PBX is safe and secure and is generally a much cheaper option than installing a server. A hosted PBX provider eliminated the need for on-site professionals to support the day-to-day operation should anything technically go wrong with your hosted PBX system.

One of the reasons hosted PBX are popular is because if you run a business with multiple locations, even overseas, they allow call routing internally for free. It offers a much better customer experience if you have an integrated phone system if you have different teams in multiple locations.

Both hosted and traditional PBX allows you to transfer phone calls and initiate call recording; however many providers offer hosted PBX with analytics data to manage functionality and reporting.

Many growing companies opt for a hosted PBX phone system as they're accessible to upscale when hiring new employees. Your service provider will be able to add a new line to the cloud phone system and all you need is a new handset.

Additionally, because the system is internet-based, employees can access a hosted PBX remotely, provided they have internet access. This is great in a world where working remotely is the new normal without employees disconnecting from the company telephone system.

Which Kind Of Business Would Benefit From A Hosted PBX Service?

Most companies would benefit from upgrading to hosted PBX systems. By using the cloud PBX, you remove the need for expensive servers, licences and specialised staff. For that reason, they are helpful for small businesses.

If your business is a start-up, or you need the flexibility to scale up and down quickly without making large-scale hardware investments, a hosted PBX can provide the solution.

Hosted PBX is extremely common in call centres and customer service centres. Banking, insurance and legal services – which rely on reliable business communications with customers as part of their core business have also adopted hosted PBX in large numbers.

Finally, working remotely has become more standard in many service sectors. Hosted PBX helps businesses facilitate a more flexible work schedule for employees because they provide a flexible and remotely-accessible communication system. You can log on from home, or even on the move. All this without sacrificing security or quality customer relationship management.

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