Hosted PBX and VoIP are 2 terms that are thrown out a lot in the telecom industry. This article explains the differences between the two.
What is Hosted PBX?
A hosted PBX (Private Branch Exchange) is a modern, cloud-based phone system fully managed by a third-party provider. Rather than dealing with bulky on-site telephone equipment (on-site PBX system), the provider handles everything in the cloud in this case. This means services like call routing, voicemail and extensions are delivered over the internet.
Hosted PBX systems are especially favoured by medium to large businesses that want reliable telephony systems without the technical headaches of managing equipment.
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What is VoIP?
VoIP is a technology that enables voice communication over the internet instead of traditional phone lines. How does it work? By converting voice signals into digital data packets that are sent through an internet connection, allowing users to make and receive calls from anywhere using their laptops, VoIP phones or smartphones.
It’s highly cost-effective, particularly for international calls and is ideal for companies with remote teams or multiple locations.
Difference between Hosted PBX & VoIP
Hosted PBX and VoIP differ in scope and functionality. VoIP is the technology that enables voice communication over the internet. It’s the foundation for modern telephony, supporting voice, video and messaging across devices.
Hosted PBX, on the other hand, is a cloud-based phone system that uses VoIP technology. It replaces the physical on-site PBX system with a scalable and maintenance-free solution. In short, VoIP is the underlying technology, while hosted PBX is a telephony system built on VoIP for businesses.
Also, read our article on VoIP vs PBX.
Is Hosted Voice the same as Hosted PBX?
Hosted Voice and Hosted PBX are similar but not exactly the same.
- Hosted PBX is a cloud-based system that takes the place of the traditional on-premises PBX hardware.
- Hosted Voice is a broader term that often encompasses hosted PBX but may also refer to simpler VoIP services offering basic telephony.
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FAQs
No, PBX and VoIP gateways are different. PBX is a phone system that manages call routing and internal communication. A VoIP gateway connects traditional PBX systems to VoIP networks to enable voice communication over the internet.
Yes, Hosted PBX and Cloud PBX refer to the same technology. Both are cloud-based phone systems managed by a provider. It offers services like call routing and voicemail without needing physical hardware in the office premises.
Hosted PBX is built on VoIP technology, so its security depends on the provider’s competency, such as the implementation of encryption and firewalls.
