hosted pbx phone systems

Hosted PBX Phone Systems: Definition and Advantages

Cloud-based telephony has allowed businesses and companies to manage their communications systems cost-effectively without needing physical hardware or infrastructure. Thus, choosing a hosted PBX phone system makes it easier for businesses to scale by only investing a small amount of upfront capital.

Better read on if you want to know more about hosted PBX phone systems, including some key points on how they can help streamline your business operations.

Hosted PBX Phone Systems: Definition and Advantages

What Is a Hosted PBX Service?

Think of a hosted PBX service as a virtual or cloud-based phone system that enables businesses to make and receive calls without requiring traditional phone lines or hardware. A third-party provider usually manages this service, offering features like voicemail, call forwarding and three-way calling.

Advantages of Using Hosted PBX Services


The beauty of a hosted PBX system is its scalability, as it easily adapts to the communication requirements of your business without the need for significant hardware upgrades. It doesn’t require physical phone lines or complex hardware setups. You can easily add or remove virtual lines and features whenever necessary.


PBX systems come with a cost, but a hosted solution is more cost-effective compared to traditional analog PBX systems. You won’t need substantial upfront investments in hardware. Since the service provider hosts and manages the phone system, you can also scale down your IT team. Moreover, most vendors offer a pay-as-you-go or subscription pricing model, reducing expenses and providing fixed monthly payments.


Let’s face it. Hardware maintenance and updates can cause a lot of headaches. With a hosted PBX, the responsibility of system upgrades, security patches, and maintenance falls on the shoulders of the service provider. You and your team can focus on more important business activities rather than doing technical troubleshooting.

Enhances mobility

Remote work setups are becoming increasingly popular, and a hosted PBX system is your best option. It enhances mobility since employees can connect to your phone system anywhere with an internet connection. You can enable work-from-home and virtual meetings with a hosted PBX.

Advanced features

Hosted PBX systems come loaded with advanced communication features. You’re not stuck with phone lines, extensions, call forwarding, and music on hold. You can enjoy features that make communication more efficient and enhance your business image, such as auto-attendants, voicemail transcription, video conferencing, call logs, data analytics, internet fax, local and toll-free numbers, and more. 

Hosted PBX Phone Systems: Definition and Advantages

Key Features of Hosted PBX Phone Systems

The features of hosted PBX phone systems differ depending on the vendor. But they usually offer these general features:


An auto-attendant or automated receptionist serves as a caller’s first point of contact. Using pre-recorded voice prompts or a text-to-speech system, the auto-attendant greets callers, provides menu options, and directs them to the appropriate extension or voicemail box.

Voicemail to email

Stop missing those important messages. Voicemail to email allows you to receive voicemail messages directly in your email. You can check them anytime using your email app, even while traveling. This feature will enable you to respond promptly to urgent messages.

Call forwarding

Hosted PBX solutions allow you to use call-forwarding features. You can redirect calls to your mobile device, ensuring that you attend to business matters wherever you are.


Many hosted PBX integrate audio and video conferencing abilities in their system. Some service providers offer an all-in-one communication platform that includes conferencing. However, some vendors might require you to upgrade to use this service. Regardless, it’s a helpful feature if you want to enable virtual meetings and foster better collaboration.

Virtual phone lines

Virtual phone lines operate through the internet, removing geographic constraints in communication. Your business can have a local presence in different regions, allowing you to establish your presence anywhere with internet connectivity. Hosted PBX service providers offer toll-free, local, and vanity numbers for businesses.

Hosted PBX Phone Systems: Definition and Advantages

Integrating Hosted PBX Phone Systems With Business Operations

Now that you know the advantages and meaning of hosted PBX, it’s time to learn how to integrate it with your business. 

Here are some steps:

  1. Assess your business needs. Before implementing a hosted PBX, assess your communication needs. Identify the specific features required to support your operations. Remember, not all vendors offer the same features.
  2. Choose your provider. Select a reputable hosted PBX provider. There are tons of options online. However, you should check reviews, ask for feedback from other business owners, and evaluate how the sales team responds to queries.
  3. Customize system settings. Work closely with your provider to customize the settings according to your requirements. For instance, you might need advanced security features if your organization is covered by HIPAA law.
  4. Integrate with existing tools. A hosted PBX system can usually be integrated with other business apps, such as Customer Relationship Management (CRM) software, email, and collaboration tools. Use this to your advantage to enhance efficiency.
  5. Train employees. Expect a learning curve when implementing new systems. To help your staff get used to hosted PBX features and maximize its benefits, offer comprehensive training. Some service providers offer virtual training and training videos for free.
Kent Cañas

Kent is a content strategist currently specializing in HIPAA-compliant online fax. Her expertise in this field allows her to provide valuable insights to clients seeking a secure and efficient online fax solution.

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