All You Need to Know about Private Branch Exchange, IP PBX & Hosted PBX

Private Branch Exchange or PBX refers to a business telephone system that enables switching of calls between users in an organisation.

 Private Branch Exchange

Private Branch Exchange helps an organisation to manage incoming and outgoing calls, thereby facilitating internal communication. Apart from internal communication, users can also communicate externally, that is outside the company. Within an enterprise the PBX allows its users to share multiple phone lines. This, therefore, helps to save the cost of a separate phone line for each user. Traditionally, PBX was a hardware system handling routing and call switching. PBX is different from PSTN through it can connect to it. In a Private Branch Exchange, the main communication circuit or the trunk lines connect to the endpoints to handle small amounts of traffic. The connection is exchanged through a switching system, which in turn, routes a large number of calls through limited lines. Some of the calling features that PBX offers are as follows: call waiting, auto-attendant, message or music on “hold” functions, voice mails and more.





All the traditional Private Branch Exchange consists of the following parts:

  1. Multiple telephone trunk lines that terminate at the PBX
  2. A computer to manage call-switching within the PBX
  3. The multiple line network within.
  4. An optional switchboard for operating manually.



Types of PBX

There are 2 types of Private Branch Exchange. Traditional PBX and IP based PBX. These 2 are further categorised into 2 types.

Traditional PBX

  1. On-Premise PBX
  2. Hosted traditional PBX


IP Based PBX

  1. On-Premise
  2. Hosted IP PBX





Present day PBX consists of both hardware and software. It connects to other communication devices like telephone adapter, hubs, switches, routers and telephone sets. Traditional PBX sets a limitation on the maximum number of trunk lines and internal device extensions. Therefore, keeping up with the growing needs, the technological advancements present the IP PBX.

IP PBX enables call switching between VoIP users. While the traditional PBX worked on telephone line and switches, IP PBX uses the internet to channel calls. This system helps to connect telephone extensions to the PSTN and provides a secure internal communication system for the business.




Benefits of IP PBX

One prefers IP PBX over the traditional PBX because it is cost-efficient. In addition to this, there are also numerous latest features. IP PBX systems present scalability, enhanced features and better management. IP PBX systems are mostly software. And therefore, these are easier to upgrade and maintain in comparison to the previous hardware version. While earlier, only the bigger companies used the PBX system, IP PBX has helped the smaller businesses. IP PBX also offers experience in terms of connectivity and reachability.




Hosted PBX

Hosted Private Branch Exchange is a PBX system that a third party service provider builds, delivers and manages. It is an IP based telephony solution that is provisioned and accessed entirely through the internet. The other terms used for Hosted PBX are cloud PBX or Hosted VoIP. It is similar to traditional Private Branch Exchange, without any need for an in-house PBX system. As a third party provider builds and hosts the PBX system on its premises, this, in turn, reduces the hassle for further maintenance. Hosted PBX connects to the customer or clients’ telephone system through the IP-based network or simply the internet. Likewise, on the client’s part, to make a call, one has to connect to the hosted PBX using IP based phones.





Benefits of Hosted PBX

Hosted Private Branch Exchange is beneficial for small businesses. It helps to bring down the production cost. Service Providers offer hosted PBX or hosted VoIP services for a monthly or quarterly fee or as per any chosen plan. The cost for this service is much less than setting up the complete system. These services work on cloud and internet connection is one of the basic requirement.

Some of the common benefits are as follows:


Low Cost & Less Maintenance:

As a third party manages hosted PBX, it reduces time and cost for maintenance. Also as there is no need for any heavy infrastructure, simple stable internet connection is enough.


Scalability & Reliability:

With hosted PBX, communication requirements can adjust accordingly. With hosted PBX, businesses can add phone lines, extensions and mobile devices without any limitations in form of hardware.

The internet-based hosted PBX or hosted VoIP is as reliable as the traditional form. In terms of the call connection, these are no lagging, delay or lapses and also has good call quality.


Various latest features & backup

Some of the features of hosted PBX are Find Me/Follow Me, Auto Attendant, Fax and voice to email, queue management to override call queue. Conference call features further include: individual management of conference call activity, integrated audio and web conferencing, call record history, online call schedule and more.

In case of any disruption through an unforeseen event, hosted PBX handles this well. As the infrastructure is in a hosted environment, the communications remain uninterrupted.




Business Prospects of Hosted VoIP

Hosted VoIP Business is a form of retail VoIP Business. This means the hardware and PBX are hosted at an off-site location away from where the VoIP service is used. This is also at times referred to as Cloud PBX because it allows the business to use the service through a web portal. Hosted VoIP Service is suitable for small or medium-size businesses. As Hosted VoIP Provider manages everything behind the screen, clients or customers, on the other hand, do not require to purchase anything other than IP Phones. Some service Providers offer Hosted VoIP Services in a package including all the necessary details like Softswitch, server, and dialer all three together. To know more about Hosted VoIP Business check here.

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