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Hosted PBX vs. Virtual PBX

A lot of people think that Hosted PBX and Virtual PBX is the same thing. Both technologies share a few similar benefits including low-cost services compared to the traditional PBX system. However, both these systems are quite different in functionality and the benefits that they provide to businesses.

Virtual PBX VoIP solution:

Virtual PBX systems are essentially a part of the hosted PBX systems and are technically not a complete communication system by itself. Both the systems allow organisations to transmit incoming phone calls and direct them to the right person while also offering them with an automated answering system. Phone calls might be routed to Voice Over Internet Protocol phone extensions, landlines or mobile phones.

Whilst both PBX systems might lack a few features which come with a complete hosted PBX system, but virtual PBX systems can be specifically beneficial for smaller companies and those companies with remote employees. The cost to set up and maintain a Virtual PBX system is considerably low in comparison to a hosted PBX or physical PBX and businesses can use SIP trunks to forward virtual DID (Direct Inward Dialling)/virtual phone number to any phone which they would like. People can also use low-cost softphones with a virtual system. These PBX systems might also offer features like find me or follow me including other kinds of advanced phone call forwarding.

However, businesses who want to implement virtual PBX systems have to keep in mind that this phone technology can only handle inbound phone calls. Further, these systems will have to maintain a system to make outgoing phone calls to customers or clients. Whilst they might use something like VoIP Business phone system to decrease the cost, they will still have to pay some extra charges for phone calls that employees make. Additionally, a Virtual PBX system doesn’t have extension dialling which can be used to connect teams, and also they don’t have any call control options.

Hosted PBX Systems:

A Hosted PBX system is a complete enterprise-level telephone system which can offer outbound phone calls along with inbound call routing. Businesses that have over a dozen workers and those businesses that handle a large sum of phone calls need to go with a hosted phone system since it will better suit their business needs.

Hosted PBX phone system providers can generally replace a company’s existing phone provider. This way a business can switch to using IP phones and all communications will go through a router which is connected to an internet connection. These phone systems are ideal for businesses that are geographically disbursed and have several locations while providing the main business number to handle all incoming phone calls. From the main business phone number, the outside calling parties can reach the person who they want to speak with through extension dialling.

Furthermore, a hosted VoIP phone service can offer businesses calling features like conference calls, auto attendants, and voicemail to email, music on hold, call forwarding and ring groups. Essentially, this is a complete phone solution which mimics a physical PBX system but has much lower cost since businesses can take benefit of SIP trunking and calling which is cheaper compared to what they would pay to a traditional telephone company.

The Bottom Line:

Hosted and Virtual PBX phone systems are quite similar in a lot of ways; however, there are some significant differences. Often, it’s best for businesses to set out with a virtual PBX system and then swtich to a hosted PBX service as the growing communication needs. With this, businesses can get what they need from their communication system while scaling the business and lowering the overall cost.

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