Supporting Customers In New England Since 1987!

Hosted PBX vs Cloud PBX: Understanding the Difference 

hosted pbx vs cloud pbx

Do you ever feel like you’re stuck in a rut, as a business owner? Running a business isn’t easy for many reasons, but one of the main issues business owners worry about is how to modernize their business to keep up with current trends. One of the first things you need to consider when modernizing your business is the communication tools you currently use.   

Believe it or not, often, using the right communication tools is just what you need to improve efficiency so your business can grow. But we also know that choosing the right tools for your business is complicated lately, with so many options in the market.  

And yeah, we know it can sometimes sound like they are all offering the same thing, so what makes them different, and what makes them the solution you are looking for? We are answering that question below by giving you an answer to what makes hosted PBX different from Cloud PBX so you can make an informed decision when upgrading your communication system. Let’s explore Hosted PBX vs Cloud PBX.  

Understanding Hosted PBX   

Hosted PBX (Private Branch Exchange) is a modern phone system that has changed business communication by outsourcing the management and maintenance of the phone infrastructure to a third-party provider. Unlike traditional on-premises PBX systems that require significant hardware and maintenance efforts, a hosted PBX operates on the provider’s servers, offering numerous advantages to businesses of all sizes. Hosted PBX has become a popular option for many businesses and is projected to reach USD 17.37 Billion by 2028.  

How Hosted PBX Works:   

In a hosted PBX setup, your business connects to the service provider’s infrastructure via the Internet. The provider manages all the essential components of the phone system, including call routing, voicemail, and advanced features.   

Primary Features and Benefits   

  • Reduced Hardware Requirements: Hosted PBX eliminates the need for extensive on-site equipment—no more bulky and costly PBX hardware installations. You only need IP phones or softphones, enabling a more streamlined office environment.   
  • Simplified Maintenance: Say goodbye to the complexities of maintaining on-premises PBX systems. The service provider handles software updates, security patches, and system optimizations with a hosted PBX.   
  • Cost-Efficiency: By avoiding costly hardware and ongoing maintenance costs, hosted PBX offers a cheaper alternative. You can scale your communication needs without worrying about the associated infrastructure costs.   
  • Embracing Remote Management: Imagine a scenario where your business can focus on growth and innovation while a dedicated provider ensures your phone system runs smoothly. Hosted PBX’s remote management aspect offers this peace of mind, allowing you to enhance communication efficiency without the headaches of hardware management.   

Exploring Cloud PBX   

Cloud PBX, or Cloud-based Private Branch Exchange, is a communication solution that modernizes business communications. It harnesses the power of the cloud to manage and streamline phone systems. Cloud and Hosted are terms often used interchangeably, but they aren’t quite the same. You’ll find a few differences when analyzing Hosted PBX and Cloud PBX. We’ll explore their differences shortly, but first, let’s talk about the cloud.   

  • Defining Cloud PBX: Unlike traditional on-premises PBX systems that rely on physical hardware, Cloud PBX operates entirely in the “cloud.” This means no bulky equipment installations within your office premises, similar to hosted PBX. Instead, a service provider hosts and manages the entire phone system remotely, offering a more modern and versatile approach to business communication.   
  • Scalability and Flexibility: One of the standout features of Cloud PBX is its ability to scale effortlessly. Whether you need to add new lines due to business growth or reduce capacity during quieter periods, Cloud PBX adapts to your real-time communication needs. This makes it an ideal choice for businesses that experience seasonal fluctuations, sudden expansion, or even remote work requirements, providing the ability to align communication capabilities with your business’s ever-changing demands.   
  • Cost-Efficiency: Cloud PBX offers cost savings by eliminating the need for on-premises hardware and reducing maintenance efforts. You pay for the services you need without the capital investment in physical equipment, making it an attractive choice for businesses seeking cost-effective communication solutions.   

Key Distinctions between Hosted PBX vs Cloud PBX:   

As mentioned above, these two might seem very similar. With Hosted PBX vs. Cloud PBX, you have two main differences: where they’re based and how calls travel before reaching the person you’re calling. For hosted PBX, everything is hosted at the location of a third-party service provider. This includes all the PBX features and the call platform. However, in a cloud PBX system, some parts are kept at the provider’s place, but a big chunk is also in the cloud.   

When you use hosted PBX to make a call, your business connects to the service provider using Internet Protocol (IP), and the call happens through the hardware or a computer at the provider’s location. But with cloud PBX, it works differently. Your calls go over the Internet without going through the provider’s hardware or computer systems. Hosted PBX vs. Cloud PBX are both great options; the decision lies in what works best for your situation.   

Unitel, Your Partner in Business Communications   

Take your business communication to the next level with Unitel’s advanced Hosted PBX solutions. Let us help you experience seamless connectivity, enhanced collaboration, and unmatched flexibility. Contact us today to find the perfect hosted PBX package tailored to your needs.