What is Hosted PBX(Private Brand Exchange), and How Does it Work?

Are you still using an outdated traditional phone system for your business? If so, you are likely facing dropped calls, high maintenance costs, and declined growth.

In the 21st century, effective communication is essential for effective business growth. That’s where hosted PBX(Private Brand Exchange) steps in. It is a modern solution that handles business phone systems, offering flexibility and reliable communication.

You can adapt it to eliminate expensive on-site equipment and IT support. In this blog, we’ll explain hosted PBX and how it works. You can also learn about its benefits and how to choose the right one for your business so that you can make an easy decision without confusion.

What is Hosted PBX?

Hosted PBX can be defined as a phone system that is hosted and managed by a third-party service provider. It basically lets internet technology handle the calls, eliminating the need for physical hardware for your office.

This system lets you connect calls over the Internet using VOIP(Voice Over Internet Protocol) technology. This technology provides the same services as a traditional PBX without the maintenance and hardware costs.

Difference between Hosted PBX and On-premise PBX 

Basically, a PBX system is known as cloud-based, where the PBX software and hardware are located outside of the data center.

The differences between them are given below:

Hosted PBX has various benefits than traditional PBX systems. If you prefer to use on-premise PBX for your business, then Dialaxy App is available on various platforms: iOS, Android, macOS, and Windows.

Working Mechanism of Hosted PBX?

Basically, hosted PBX shifts and business communications infrastructure to a trusted VOIP provider.

1. Setup

The first step is setting up the business, subscribing to a hosted PBX Service, and configuring the phone system with the help of the web portal.

The setup process basically involves creating the extensions, setting up the rules for call routing, and configuring the user settings.

2. Call Handling

After making a call, it is sent over the internet to the hosted PBX provider. The provider servers manage the call routing, which makes sure that it reaches the correct destination.

This must be an internal extension, an eternal number, and mobile devices. This system basically uses VOIP technology to convert the voice signals into data packets that travel over the Internet.

3. Management

The business manages its phone system settings, extensions, and features with the help of an online dashboard, which is basically provided by the service provider.

This dashboard allows real-time adjustments like adding new users, changing call routing, or accessing the voicemail settings. Detailed analytics and reporting features can be seen. Provides businesses insights into call patterns and system performance.

What are the benefits of Hosted PBX 

There are many valid reasons why businesses switch from an on-premises PBX so that they can host their business phone system in the cloud. While comparing these two, you will notice that hosted PBX offers lots of features which is because there are dozens of VOIP features to implement.

I. Flexibility for remote workers

The important reason why businesses switch to hosted PBX is due to the flexibility it provides to remote workers. With the help of VOIP, staff are able to use apps and instantly have calls forwarded to any number or device anywhere in the world. so, to make changes to your business, you require a hosted PBX provider and reliable internet.

II. Easy setup and Maintenance

Another important benefit is easy setup and maintenance. Hosted PBX can be set up in a day it doesn’t require any on-site infrastructure. You don’t need to hire dedicated staff so that they can manage changes and solve troubleshooting issues. This cloud-based nature makes the overall system simple to implement and maintain.

III.Customization and control

With the help of a hosted PBX, the overall call settings and routing can be adjusted instantly. Businesses can easily add settings and new features whenever needed. It has features like call forwarding, conference lines, caller ID, and voicemail to SMS can be easily toggled on/off. You may call your service provider and adjust the features according to your needs.

IV. Improved reliability and redundancy

As hosted PBX isn’t tied up to physical wiring or an on-site box, many infrastructure failure points are avoided. By building failover and interconnected data centers, cloud phone systems provide redundancy that allows companies to run smoothly. For businesses, increased reliability is considered an important benefit.

V.Call security and encryption

Hosted VOIP calls transmit call data packets among the cloud PBX and IP of phones and computers. Most VOIP providers have the ability to encrypt the voice packets by using Secure Real-time Transport Protocol(SRTP) and Transport Layer Security(TLS), making it nearly impossible for data that needs to be intercepted. Encryption makes the call data secure without impacting the voice quality.

Drawbacks of Using Hosted PBX

With its impressive set of features, hosted PBX also has some limitations. You need to carefully analyze these drawbacks to decide if they align with your business goals. Let’s look at them.

1. Reliability on Internet Connection

A hosted PBX system completely depends on the Internet to operate, which can be a burden at times. If the internet connection is unstable or slow, it can affect customer interaction sessions. Poor call quality and dropped calls may also be encountered if the internet isn’t reliable.

2. Limited access to system updates

Since the service provider manages the hosted PBX, businesses have less control over updates and upgrades. You may need to wait for the provider to roll out new features or changes, which might not always align with your immediate needs. Some providers may also charge extra for certain upgrades or advanced functionalities

3. Security Concerns

Your communication data is hosted and managed by a third-party provider. This reliability may develop concerns about data privacy and security, especially for businesses with strict compliance needs.

How to choose the right Hosted PBX Provider?

While selecting a hosted PBX provider, various factors are there which can guide your decision:

A. Cost

First, evaluate different pricing models, which include setup fees, monthly charges and other additional features. Be sure that the cost aligns with your budget and business size.

B.Features

Identify the essential features that your business needs, which can be call routing, voicemail, conferencing, and mobile integration. Look for advanced functionalities like CRM integration and analytics that enhance your operations.

C.Support

The customer support must be reliable. Look for providers who offer 24/7 support and various support channels like phone, email, and live chat. Identify the providers who check the customer reviews for insights into providers’ responsiveness and problem-solving capabilities.

D.Security

Communication security is important to look at and verify the security measures of the providers. This basically includes data encryption, secures the data centers, and maintains industry standards like GDPR or HIPAA, which are applicable to your industry.

What is the future of hosted PBX?

Over the years, the workplace has undergone a dramatic transformation. With improving technology, remote and hybrid work is now the norm rather than the exception. This shift has also invited the adoption of hosted PBX, which is a flexible, scalable, and cost-effective solution.

The shift from on-premise PBX hardware to cloud-hosted solutions is set to continue. This is due to the need for agility, reduced maintenance, and seamless remote access. Businesses also need to keep up with the changing business phone systems to stay competitive.

Business owners and IT teams value solutions that just work. Nobody wants to wrestle with outdated servers and legacy PBX software anymore—it’s not worth the hassle or hidden costs.

Cloud-based PBX is the future. The modern office is moving away from bulky equipment, and softphones are replacing desk phones. Call centers are trading in their old systems for hosted PBX setups that let agents work from anywhere with just an internet connection.

So, as work keeps evolving, can your PBX keep up?

Conclusion 

Hosted PBX offers you a modern, flexible, and cost-effective solution that is suitable for your business to handle communication needs. By shifting from traditional phones to cloud-based PBX, businesses will have various advantages: the cost will be reduced, the maintenance will be easy, and improved scalability.

Investing in a hosted PBX system is crucial as it makes communication smooth and supports future growth. Business who are looking to improve their communication, hosted PBX is the right choice. The decision is yours. With the right provider like Dialaxy, a hosted PBX can change how your business communicates, improve efficiency, and provide customer satisfaction.

FAQS

How much does a cloud PBX cost?

The cost of a cloud PBX phone system varies as it depends on features and number of users. Cloud PBX costs less than the on-premises PBX systems. The cost ranges from $15-$50 per user for one month.

What are the benefits of hosted PBX?

The benefits of hosted PBX are that it reduces the cost, the setup is quite easy, and it has improved features.

Are PBX and VOIP the same?

No, they aren’t same A PBX basically is a Private branch exchange, which is a private telephone network and VOIP is voice over internet protocol, which makes the phone calls over the internet rather than the traditional phone lines.