Traditional PBX is located at a business’ server or technology room. It uses physical telephone networks to receive and transfer calls to legacy landlines. A hosted PBX in the cloud uses voice over IP (VoIP) technology to connect calls to assigned users. A virtual PBX offers more advanced features than traditional telephone networks, such as call queuing and auto receptionists.

Hosted PBX uses an internet router and remote VoIP technology to connect calls and transfer voice traffic. A selected internet telephone service provider (ITSP) provides and maintains your PBX. When combined with a SIP trunk, callers can connect via the public switched telephone network (PSTN).

Hosted PBX systems are exclusive to businesses, giving them greater control over their expenses and security. Companies can benefit from considerable cost savings, as all calls transferred over the Internet are free. Remotely hosted PBX systems eliminate the need for large-scale on-site maintenance, which reduces business continuity risks. Cloud VoIP technology also facilitates communication from any location.

Although a traditional PBX effectively transfers voice calls, its capabilities are limited compared to voice over IP or VoIP. Unlike VoIP, physical PBX relies on the availability of the end-user and does not facilitate other forms of communication. VoIP technology enables end-users to forward, cue, and re-direct calls, improving internal communication and customer satisfaction. Similarly, it’s compatible with IP phones, mobile devices, and computer integrations.