While PBX systems were historically reserved for large corporations and were analogue, the rise of digital and Hosted PBX has made a PBX system solution much more accessible for small and medium sized businesses, too. Most PBX systems nowadays are IP-PBXs, which just means they use VoIP and IP networks to manage and channel your business calls.
VoIP has taken the business world by a storm, as seen by the graph below outlining the growth and projected growth of internet phones over the last decade.
PBX leverages this impressive functionality to replace traditional phone lines within your company, giving seamless opportunities for collaboration, cost savings and mobility.
On-Premise means just that. The PBX system is on your own business premises, requiring installation, maintenance and some serious IT know-how. It goes without saying that the costs are higher for set-up, but you will have expert support with you every step of the way to get your PBX up and running. This might include staff training, qualifying the network for you, and getting the programming or features exactly right for your company. This choice is great if your company has specific customization needs, or you want your own SIP Trunking hardware for better scalability and flexibility with your solution.
Hosted PBX is handled off site, by whichever company you choose. This comes with a lower initial cost, but will usually incur a monthly fee which can be more expensive than On-Premise. Remember that any hardware at your offices (telephones etc) are your responsibility. The benefits include all patches and upgrades being handled by your provider, easy (often automatic) upgrades of new features, and simple mobility, as the phones are usually just connected to your broadband.
Hosted PBX and Cloud PBX are very similar, with Cloud PBX referring to where the data is being stored, in the cloud. This offers extra security and speed for your business, so is often the preferred choice. Most Hosted PBX providers offer a cloud based IP PBX solution.
A Virtual PBX is usually a virtual call attendant. This means it can handle incoming calls and redirect them to the right staff members, but does not usually make outgoing calls or have many other features. It is the right choice for a small or up and coming business who want to keep costs to a minimum.
The differences between different PBX providers can vary greatly from one to the other, so it’s important to know exactly what you’re looking for when picking your PBX system.
The general benefits expected with a PBX are:

As well as the basics, there are some great additional features to look out for which can help your business.
Auto attendant features are really common, and can give your company more of a professional first impression. Recorded messages, touch tone choices, and automatic extension rerouting - known as
- are just some of the choices. Your business can include hold music, multiple languages, and dial-by-name directories for callers who might not have the correct extension to hand.
Behind the scenes, your company can also set up extension groups so that if the staff member is not available, the right colleague picks up the call. Mode scheduling is another great feature which lets incoming calls be dealt with differently depending on the time of day. This is a professional way to seamlessly handle out of hours communication, or an holiday calls with more than just an ‘out of office’.
Tools to improve and increase mobility are also growing in popularity. Many PBX systems allow your staff to connect from anywhere, not just multiple offices and extensions, but from mobile devices, apps, desktop computers and even through email. Call handling tools include simultaneous ring, call waiting, system speed dials and voicemail to email.
Ask your hosting provider if they have additional features for reporting and analytics. Syncing with call center capabilities, this can help you oversee phone activity, keep track of productivity, and create actionable analytics for success and change.
Getting up and running with any new system can be daunting, especially if your business is used to something different. But Hosted VoIP systems are inherently simple to get started with. There is no PBX or SIP Trunking hardware on site, so nothing physical for the business to manage other than IP phones if your company requires.
Even if your business has a contract with an equipment leasing company, your VoIP provider can often integrate their VoIP services into existing systems. Your provider may also be able to check your Quality of Service (QoS) settings, check network quality and ensure that you have adequate bandwidth allocated. The set-up time for hosted PBX can literally be a few minutes of your time, which explains why many businesses choose hosted PBX over more hardware-reliant solutions like
/ On Premise.
Bottom lines are there for a reason, and anything which can save money is something for a business to consider. Not only are PBX systems a competitive monthly fee compared with the telephone system, but they are also a good long-term investment. Some cost benefits include:
A PBX is clearly a great investment for your business, but there is still a lot of variation between the prices of the best providers. How can you make the right choice for your company? These are all the important elements to think about before signing on the dotted line.
By the end of 2017, there are expected to be over one billion VoIP users, while traditional telecoms are losing an average of 700,000 customers every single month. If you’re behind the times when it comes to what VoIP could do for your business, you’re missing out.
A PBX is a fantastic alternative to traditional phone lines. It will help with collaboration and communication between staff and offices, reduce costs on outgoing calls, and raise productivity and reliability in an actionable and measurable way. Full of exciting new features to give a fresh face to your business, and provided by reliable hosts and powerful providers, you could be up and running in a few simple steps.
Check out our feature comparison chart of the best PBX providers, to help choose the right VoIP for Business solution which meets your needs.
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