What is Hosted PBX AND VoIP?

What is Hosted PBX AND VoIP?

Although various telecoms can be complicated, among them there are various acronyms and the names for different things and among them the most common misconception is that the VOIP and the hosted PBXs is the same thing but they are actually not. Through this article you will know the difference between these two and it helps you decide if the hosted PBX of VoIP is reliable for your business.

What to know about Hosted PBX?
Mainly, the businesses have an on-premise PBX which means there is a literal “box-on-the-wall” and it can dramatically reduce the running cost of your businesses. The hosted PBX uses your broadband connection for connecting your phone to the cloud and in this cloud there is a phone system that acts similar to the box-on-the-wall.

How Hosted PBX is beneficial?
Hosted PBX has various benefits which include –

  • No maintenance
  • Cheaper cost per phone
  • Flexible packages


A hosted PBX is a great way that you can use to save money and they are more flexible as well as affordable than the traditional PBX, making them a great alternative, especially, for the smaller businesses.

What to know about VoIP?
VoIP stands for Voice over IP and it is the most relevant method for transmitting voice calls with “the internet” and you can use this IP telephony for making their journey from one place to another. VoIP sits on the top of the existing broadband connection and you can use that to make and receive calls due to which VoIP is often branded as a “hosted VoIP” or a “hosted VoIP PBX” and it is mainly because a hosted PBX uses a VOIP connection while making and receiving calls. Mainly, the businesses using VoIP have fewer telephone lines which means there will be less running costs and they also have reduced the call charges as VoIP comes with the call packages and will also help your businesses to make things easier.

How a Hosted PBX is different from VOIP?
A hosted PBX is a cloud-based phone system, whereas VoIP is the method that you can use for making calls, and a hosted PBX mainly uses VoIP in its operation and they both work in unison together as a platform as well as method.

If you want to increase the efficiency of the business and cut the costs then you need to combine these two modern telecom technologies as it allows for a more flexible telephony environment that has a custom build system and low running costs.

When it comes to calling features, you can use the VoIP systems as you can get the more configuration options as compared to the PBX systems as VoIP systems are directly managed from the computer and you can easily program or reprogram when required, even if you don’t have the relevant expert-level knowledge. You can also set the VoIP system to transfer calls to various other platforms depending on the specific conditions such as the time of the day or the day of the week if you want them to work efficiently. Furthermore, you can use the PBX system for routing calls to the specific experts or when there is a need to forward all calls to the specific number but it lacks the flexibility of the VoIP setup.

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