Hosted PBX Phone Systems in 2022

Business owners certainly need to keep their teams connected while working, but they also need to be aware of the cost and suitability of the telecoms services they are using. Any business that is dealing with customers or keeping in constant communication with partners needs a telephone system they can rely on, which is why PBX phone systems are so important in modern businesses.

But which PBX phone systems are businesses using in 2022  — and beyond? Many are opting for hosted PBX services that provide enhanced call reliability and clarity while reducing the cost profile. We'll be looking at this in more detail in this post, examining what these systems can do for your business.

hosted pbx phone systems

 

What Is a PBX Phone System?

PBX stands for Private Branch Exchange. This exchange is used to route calls within the business, which may include internal calls between users in the same building, or calls to or from external telephones. The point is, the exchange is private and dedicated specifically for a single business.

Any business that handles a lot of calls and different telephone devices needs a private exchange. Utilizing a PBX means the business has control over the infrastructure that handles the calls and can also add features, capability and capacity when required. It also makes calling more reliable and cost-effective, as calls do not need to be routed through an external exchange.

Do Companies Still Use PBX Phone Systems?

The short answer is — yes, PBX systems are still in use by companies across the world. However, this question is a more complex one. This is because there is more than one kind of PBX. A modern PBX phone system may be a cloud-based solution — a hosted PBX system that operates on the same lines as a more standard physical system but is provided as a managed service. But what about traditional PBX systems — are these still in use now that we have a more efficient alternative?

Again, the answer is yes. This is mainly for practical reasons. Traditional PBX systems need to be installed on-premises in what is often an expensive and disruptive process. Once the PBX is installed, there is no reason to uninstall it if it is still providing a solid and reliable service. Many businesses operate an "if it isn't broke, don't fix it" approach to upgrades, and this makes sense. After all, why would you need to completely overhaul a solution that is already working just fine?

Supplementing Traditional Systems with Cloud PBX Features

Despite this, businesses do need to maintain a long-term view. The traditional PBX system will not be a viable solution forever, and businesses will need to upgrade to a cloud PBX provider or hosted solution eventually. Many businesses opt to supplement their traditional PBX system with IP PBX functionality — for example, call holding or call forwarding capabilities supported by an IP local area network (LAN).

This represents a stepping stone between the traditional systems of the past and the hosted PBX infrastructure of today.

 

How Do PBX Phone Systems Work?

A PBX system is basically a telephone exchange. Just like analog telephone calls are connected via an intermediary switchboard that joins the caller's phone to the recipient's, the PBX does almost exactly the same thing — except it is deployed within the business. So, rather than competing with other callers who may be using the exchange, businesses have their own private exchange that connects calls instantly and seamlessly.

Generally, the PBX will do more than just connect calls. Businesses will benefit from other features too, such as call holding, forwarding, and transfers. Users from within the business can make calls to other users on the business network, or they can make calls to external users and devices outside of the business network.

Traditional PBX systems connect calls between multiple analog phone lines and are physically installed on the business premises. However, there are other more modern options for businesses, including PBXs that operate using digital phone lines or which use Voice over Internet Protocol to connect digital calls via an internet connection.

Why Do Companies Use PBX?

Businesses use Private Branch Exchanges for a number of reasons. These may include:

Reduced cost

With free internal calls and reduced-cost external calls, PBX is a useful way for businesses to manage their spend on telecoms.

A more reliable network

Businesses do not need to worry about third-party outages, as they retain control over the exchange. Managed service providers also offer close support for hosted PBX systems.

Full control over call features

Business owners can add or remove call features — such as call waiting and call queue features — from their phone systems, ensuring that all users have the functionality they need. This also means business owners can scale up their capabilities, adding extra features when required.

Support for digital transformation

An IP PBX handles calls via an internet connection, meaning businesses can upgrade from an analog system to a digital-only solution, leveraging the flexibility and reliability advantages that come with digital transformation.

What Is a Hosted PBX System?

A hosted PBX system is a PBX delivered by a managed service provider and hosted in cloud infrastructure. While the calls handled by the hosted PBX are digital, this should not be confused with a digital PBX. Digital calls can still be managed via a standard PBX system.

Instead, hosted exchanges operate exclusively via an internet connection. There is no need for an analog phone line or analog exchange at all.

How Does a Hosted PBX System Work?

Unlike with a traditional PBX, there is no need for physical internal infrastructure at your business premises. Instead, the exchange is handled via an internet connection and hosted by a service provider.

The business connects to this PBX via the host company. As part of the agreement with the host, the connection is always active, providing seamless connectivity for the business teams.

Employees then place calls using their VoIP-enabled devices. While the human voice is an analog signal, the protocol will convert this into a digital signal ready for transmission. This digital signal is then sent to the hosted PBX.

The hosted PBX will immediately route the call through to where it needs to be — generally, the VoIP or digital phone used by the call recipient. The recipient phone may simply deliver the call to the user as a digital signal, or it may convert it back into an analog signal depending on the device being used. Any conversion takes place instantaneously, so there is no lag.

The caller and the call recipient can converse freely and naturally. The whole process is immediate and designed to facilitate easy communication between users.

Do I Need a PBX Phone System for VoIP?

No, a business does not need a PBX system in order to use VoIP. If the user has a VoIP device, they can connect it to the internet and use it just as they would a normal phone. The user dials the number, waits for the recipient to answer, and then they carry out their call. The recipient phone does not even need to be VoIP-enabled.

While VoIP and PBX are not the same, they are inherently linked. PBX systems are used to make VoIP calling — and all calling — more effective and efficient. We've already touched on the benefits of a PBX system above, but essentially this system is just an internal exchange that is reserved for use by a specific business. The network becomes more reliable, more cost-effective and easier to use with a PBX system in place, and it is certainly recommended for businesses with many different team members and telephone devices. It is better for businesses to operate PBX systems and VoIP together. However, the PBX system is not required to make VoIP calls.

 

Choosing the Best PBX Phone Service for Your Small Business

Your small business doesn't just need a PBX phone service — you need to make sure you are working with the best PBX phone service for your needs. This means selecting a cloud PBX provider that is both reliable and cost-effective and also offers all the features and capabilities your business needs. Let's take a look at this in more detail.

Consider Your Existing Infrastructure

There are three main options when it comes to PBX: a traditional PBX service, a self-managed IP PBX, or a hosted PBX service. When you choose PBX phone service, you are essentially choosing the third option, and you are looking for a provider that can manage this service.

However, you may already have telecom infrastructure in place. For instance, you may already have a traditional PBX system and you want to upgrade this system to match your longer-term aims. In this case, you might want to look for a provider that can offer supplementary services to help you carry out your upgrade in a managed and cost-effective way. 

Alternatively, you may not have a prior PBX infrastructure, but you already have telephone devices and hardware. You need to know whether you can keep on using these devices or if you will need to invest in completely new technology.

Think About Your Future Needs

Your business is not static. It will grow and evolve over time. With this in mind, you need a PBX provider that can support these future developments. Which features does your business need currently? How many separate VoIP phones and phone lines are you working with? Will you have the option to add more features, devices and lines to your network in the future? 

Work with providers that can offer the scalability you need. Take your time to find a partner offering flexible managed plans that support small businesses as they grow.

Weigh Up the Cost Elements

Different hosted service providers will have different terms. It's important to get to know the specifics of these terms before you make your choice. Find out how much the hosted PBX costs for the managed service and determine whether the billing is carried out on a monthly basis or every year.

You'll also need to identify any additional fees you may need to pay. Some providers may apply fees to extra support services or features, and you'll need to know this ahead of time so you can find the best PBX provider for your needs.

Consider the Features and Customization You Need

Think about the different features your business may need. For instance, do you need call waiting, call queue or call transfer features? Make sure your PBX phone system provider can offer everything you need at the right price.

You may also need a flexible service that can be customized to your needs. Check that the provider is able to offer this kind of tailoring of their services.

Hosted PBX vs. Traditional PBX

We've looked at some of the technical differences between how hosted and traditional PBX systems work, but which one is the best exchange option for your specific business? Let's examine some key points of difference.

Installed Infrastructure

  • A hosted PBX requires no on-premises exchange infrastructure.

  • Traditional PBX requires cabling and hardware to be installed onsite.

Ongoing Maintenance

  • A hosted PBX is offered as a managed service and can be administered remotely.

  • Traditional PBX infrastructure will need to be maintained and upgraded through work carried out on-site.

Support for VoIP

  • A hosted PBX will support VoIP telephones for reduced costs and better call quality.

  • A traditional PBX may support VoIP telephones, but upgrades and adapters may be required to do so.

Flexibility and Customization

  • A hosted PBX is flexible, and you should be able to add more features and configurations as your business grows.

  • It is more difficult to add features and manage configurations with the traditional option.

 

Discover More About PBX Services for Your Business

Generally, a hosted PBX service is far superior to a traditional PBX system. The hosted option can be managed with greater ease and is a far neater solution than relying on physical infrastructure installed on your premises.

To find out more about the different PBX services open to you and how a hosted PBX provider can revolutionize your telecoms, check out our resources page. You can also find VoIP equipment and other solutions on our product pages — products that make your business communications a dream and essentially future-proof your organization.

Matt WheelerComment