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  • Carlos Lahrssen

Understanding the Differences Between Hosted PBX & Virtual PBX Services

Updated: Jul 14, 2023


In the world of business phone systems, there are various options available, each offering unique features and benefits. Two popular choices are Hosted PBX and Virtual PBX services. In this blog, we'll explore the main differences, pros, and cons of these two solutions to help you understand which one may be the right fit for your business.


Hosted PBX Service


Hosted PBX, also known as Cloud PBX or Hosted VoIP, is a phone system where the service provider handles all the infrastructure and equipment required to manage your business communications. Here are the key aspects and benefits of a Hosted PBX service:

  1. Infrastructure and Maintenance: With a Hosted PBX service, the service provider maintains and manages all the necessary equipment, such as servers, routers, and switches, in their data centers. This eliminates the need for you to invest in and maintain expensive hardware on-premises.

  2. Scalability: Hosted PBX offers excellent scalability, allowing businesses to easily add or remove phone lines and features as their needs change. This flexibility is particularly beneficial for growing businesses or those with fluctuating call volumes.

  3. Cost Savings: By opting for a Hosted PBX service, businesses can save on upfront costs since there is no need to purchase and maintain complex phone system hardware. Additionally, service providers usually offer subscription-based pricing models, making it easier to budget for communication expenses.

  4. Advanced Features: Hosted PBX services often come with a wide range of advanced features, including auto attendants, call forwarding, voicemail to email, call recording, and integrations with business tools like CRM software. These features enhance productivity and provide a professional image for your business.

Pros of Hosted PBX Service

  • Lower upfront costs and reduced hardware maintenance.

  • Scalability to easily adapt to changing business needs.

  • Access to advanced features and integration capabilities.

  • Reliable service with regular updates and maintenance performed by the provider.

Cons of Hosted PBX Service

  • Dependence on an internet connection for service reliability.

  • Limited control over the underlying infrastructure.

  • Monthly subscription fees that may add up over time.


Virtual PBX Service


Virtual PBX, also referred to as a Virtual Phone System, is a phone service that relies on cloud-based software to handle and manage your business phone system. Let's explore the main characteristics and advantages of a Virtual PBX service:

  1. Flexibility and Mobility: Virtual PBX systems allow users to work from anywhere with an internet connection. Employees can use their mobile devices or personal computers to make and receive calls using virtual extensions. This flexibility is particularly useful for businesses with remote workers or those with multiple office locations.

  2. Cost-Effective Solution: Virtual PBX services often come at a lower cost compared to traditional phone systems or even Hosted PBX solutions. The absence of on-premises hardware and the subscription-based pricing model contribute to cost savings.

  3. Easy Setup and Maintenance: Virtual PBX services are typically easy to set up and require minimal technical knowledge. Users can manage their phone system settings through an intuitive online portal without the need for specialized IT support.

  4. Essential Features: While Virtual PBX systems may not offer as many advanced features as Hosted PBX, they typically provide essential functionalities like call forwarding, voicemail, auto attendants, and call routing options. These features support efficient call management and enhance customer experience.

Pros of Virtual PBX Service

  • Cost-effective solution with lower upfront investment.

  • Flexibility for remote work and multiple office locations.

  • Easy setup and management through an intuitive online portal.

  • Essential call management features for effective communication.

Cons of Virtual PBX Service

  • Limited advanced functionality

  • Limited Features


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