What is Hosted VOIP?

Hosted VOIP is also known as Hosted PBX. PBX stands for Private Branch Exchange. As the name indicates, it is a private telephone network located within and used by the company. PBX is needed for small or mid-scale companies having a large number of phones. Hosted VOIP or PBX is similar in functionality to the traditional PBX, but the hardware and other controls are installed in the service provider’s location. Calls are placed via the internet through the service provider.

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Hosted VOIP provides many features playing music during call waiting, call forwarding, auto attendant service, call conferencing, etc.

Pros of Hosted VOIP

  • Installation cost is nearly nil as the PBX, VOIP equipment, and other controls are setup and managed by the service provider.
  • In traditional PBX, the expansion of the system involves money as well as manpower. But in the case of VOIP, the expansion is completely handled by the service provider without any additional cost.
  • There is no need to employ IT professionals for managing the system, as all the software updates and maintenance is handled by the service provider. It saves lot of money.
  • Adding or removing new connections to the system can be done very easily with the help of the Graphical User Interface (GUI) supplied by the service provider.
  • In traditional PBX there is a certain limit on the number of internal and external connections, whereas in hosted VOIP there is no such limit.

Cons of Hosted VOIP

  • The company does not have full control over the system as it is fully managed by the service provider.
  • Any customized feature or change has to be implemented by the service provider. So customization is not straightforward.

In short, Hosted VOIP or PBX is the future communication system of small as well as mid scale companies.