What Is a Hosted IP PBX?

by Keith H

Overview

In a hosted Internet Protocol (IP) private branch exchange (PBX) system, all Voice over IP (VoIP) call processing equipment is hosted and managed remotely by a service provider. Customers pay a fee for this service, rather than acquiring and maintaining the hardware and software themselves.
How It Works

The call processing hardware and software is installed and configured by the service provider. A customer selects phone numbers or assigns existing numbers to the system. As calls come in, the remotely hosted equipment routes them to the customer through the data network.

Features

Hosted IP PBX solutions allow small to mid-sized companies access to enterprise level VoIP systems without the upfront costs. Features include standard services like voice mail, caller ID, call waiting, conferencing and voice mail to email. In addition, the service provider will monitor the PBX, respond to alerts and define and implement actions to fix problems.
Benefits

Benefits include reduced costs, reduced effort of maintaining the PBX system in house and access to technical support.
Cost

The cost of a hosted IP PBX will vary by service provider. In general, a hosted IP PBX will cost less than the upfront cost of acquiring, installing and maintaining the equipment yourself.
Choosing a Service Provider

Because managing network equipment can be complex, a hosting service provider should have extensive experience managing IP PBX systems. The service provider should always offer a service level agreement (SLA) that ensures equipment will remain up and running at all times.

Overview