Hosted PBX System and Its Key Advantages

What is a Hosted VoIP PBX System?

Hosted VoIP PBX/PaBX or Cloud PBX/PaBX, as its name suggests, refers to a Private Branch Exchange that is hosted by either the vendor or a third-party hosting provider. It is also commonly referred to as a Virtual PBX. 

Incorporating a hosted PBX into your organisation’s communication infrastructure not only eliminates installation costs but also significantly reduces operational and maintenance expenses. 

Since the PBX will be hosted by the service provider, your organization will not need to bear the expenses associated with maintaining and upgrading the PBX system. 

Additionally, with a hosted PBX, you can enjoy increased scalability, flexibility, and enhanced functionality that can improve your overall communication experience.


Why Switch to Hosted PBX System?

Modern organisations have the option to switch to a hosted PBX system and eliminate the burdens associated with managing their own infrastructure

By subscribing to a Voice-as-a-Service (VaaS) plan, the service provider takes care of all maintenance and upgrade responsibilities, freeing up companies to focus their resources on business development. 

This allows organisations to redirect their efforts towards growing their business while leaving the technical aspects of communication to the service provider. 

With VaaS, businesses can enjoy the benefits of a modern communication system without worrying about the upkeep and maintenance of the infrastructure. This makes it easier and more cost-effective for companies to stay connected and maintain a competitive edge.

Moreover, a hosted VoIP PBX system offers a range of useful features that can benefit organisations of all sizes. These features include Interactive Voice Response (IVR), fax services, voicemail, and conferencing capabilities. 

IVR allows callers to interact with an automated system to get directed to the right department or service. Fax services enable users to send and receive faxes without the need for a physical fax machine. 

Voicemail provides a centralised system for storing and managing voice messages. Conferencing capabilities allow multiple users to connect and collaborate remotely, which is especially useful for organisations with remote or distributed teams. 

By leveraging these advanced features, hosted PBX users can improve their communication workflows and enhance overall productivity.

How Hosted PBX System Works?

There are three ways that a hosted PBX works:

    • Via the Public Switched Telephone Network (PSTN)
    • Via the Internet (hosted IP PBX via Internet Telephony or Voice Over IP, VoIP) 
    • A combination of both 1 & 2

Key Advantages of a Hosted PBX System

1. Cost effective

One of the key benefits of using a hosted PBX system is that organisations can effectively manage their costs by offloading operational and management tasks to the vendor.

This eliminates the need for organisations to invest in expensive hardware and software, and the associated maintenance and upgrade costs.

The service provider takes care of all system updates and maintenance, ensuring that the organisation’s communication system remains up-to-date and secure.

Additionally, the Software-as-a-Service (SaaS) subscription model of a hosted PBX system allows organisations to control their expenses more effectively.

With a predictable monthly subscription fee, organisations can budget their communication costs more accurately and avoid unexpected expenses. 

This enables organisations to allocate their resources more efficiently and make more informed decisions when it comes to managing their communication infrastructure.

Overall, a hosted PBX system provides cost-effective and scalable communication solutions for modern organisations.


2. Rich In Features

Hosted PBX systems offer a wide range of rich features that are often not available in traditional PBX systems. Some of these features include Interactive Voice Response (IVR), voicemail, and conferencing capabilities.

With IVR, customers can interact with an automated system to get routed to the right department or service, which can save time and increase efficiency. Voicemail provides a centralised system for storing and managing voice messages, making it easier for users to access their messages and respond to them.

Conferencing capabilities enable multiple users to connect and collaborate remotely, which is especially useful for organisations with remote or distributed teams.

Additionally, hosted VoIP PBX systems can integrate with other services to provide a more comprehensive telephony experience. For example, integration with customer relationship management (CRM) software can provide valuable insights and help organisations better manage customer interactions or a contact centre suite.

Integration with Unified Communications (UC) platforms can enable users to access voice, video, and instant messaging services from a single platform, which can improve collaboration and productivity.


3. Resilience

Compared to on-site PBX systems, hosted PBX systems offer superior resilience and business continuity, especially during natural disasters or other emergency events.

With the entire PBX system hosted in the cloud, employees can continue to use the system as long as they have an internet connection and a device, even if they are unable to access the physical office.

During natural disasters, on-site VoIP PBX systems are at risk of being damaged or disrupted, which can cause significant downtime for organisations.

Hosted PBX systems, on the other hand, are designed to be highly resilient and can withstand disruptions caused by natural disasters or other emergencies.

In the event of a disruption, the hosted PBX system can be quickly restored, ensuring that communication channels remain open and operational.

Moreover, hosted PBX systems provide a level of flexibility and mobility that is not possible with on-site PBX systems.

With employees increasingly working remotely or from multiple locations, the ability to access the PBX system from anywhere, at any time, is critical.

Hosted VoIP PBX systems allow employees to access the system from any device, regardless of their location, ensuring that business operations can continue seamlessly.


4. Scalability

Another significant advantage of using a hosted PBX system is the ability to self manage employee numbers quickly and easily. This can be achieved through a self-service portal that allows organisations to add, change or remove employee numbers almost instantly.

With this feature, organisations can manage their onboarding and off-boarding process for both on-site and remote employees more efficiently.

Traditionally, managing employee numbers in a PBX system can be a time-consuming and challenging task, particularly for organisations with a large workforce.

With a hosted VoIP PBX system, however, the process is streamlined and simplified, enabling organisations to make changes in real-time, regardless of their location.

Furthermore, self-service portals can provide a range of other benefits, such as enabling users to access call logs, voicemail messages and other features, which can improve overall productivity and efficiency.

By leveraging self-service portals, organisations can reduce the workload on their IT team, enabling them to focus on more critical business operations.


5. Realtime and Reporting

Most hosted VoIP PBX systems come with comprehensive dashboards and analytic tools that provide organisations with valuable insights into user behaviours.

These analytics tools enable organisations to track call volumes, monitor employee productivity, and analyse call patterns, among other things.

By leveraging this data, employers can optimise employee efficiency, improve customer service, and enhance overall performance.

With hosted PBX systems, employers can monitor employee productivity through real-time call monitoring, call recording, and performance reports.

These features allow managers to identify areas for improvement and develop strategies for increasing productivity and efficiency.

Call analytics also enable organisations to analyse customer behaviour, identify trends, and tailor their services to meet customer needs.

Furthermore, analytics tools can help organisations to identify and address areas where they can improve their communication infrastructure.

By identifying issues such as call drop rates or call waiting times, organisations can take steps to improve their services and enhance customer satisfaction.



In conclusion, a hosted VoIP PBX system offers several advantages over traditional on-site PBX systems. With a hosted PBX, organisations can eliminate installation costs, reduce maintenance expenses, and enjoy more features and functionality.

The Software-as-a-Service (SaaS) subscription model allows organisations to control expenses more effectively and provides greater scalability and flexibility. Hosted PBX systems also offer superior resilience and business continuity, particularly during natural disasters or other emergency events.

Additionally, self-service portals and comprehensive analytics tools provide organisations with greater control and insights into their communication infrastructure, enabling them to optimise employee efficiency and enhance overall performance.

Overall, a hosted PBX system provides a cost-effective and scalable communication solution that can help organisations to stay connected and maintain a competitive edge.

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