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November 21, 2021

When Is a Hosted PBX Necessary?

VoIP providers have an incredible number of features that can be useful for businesses of any size. However, it can be hard to determine which ones you really need. VoIP can save you money, but if you’re not careful, it’s easy to end up paying for features you’ll never use. Avoid the unnecessary upsell and get the perfect package by following our feature guides. This time we’re looking at the Hosted PBX feature. Do you need it? Let’s find out.

Understanding PBX

A “hosted” PBX is also known as a Cloud PBX. It’s hosted in the cloud, so the two terms mean exactly the same thing. As for the PBX part, that stands for Private Branch Exchange. With traditional phones, this is how the public telephone network connects to businesses that use extensions. A standard phone call travels down copper lines, reaches your building, and then the PBX handles it from there.

With a PBX, you can wire up your whole building and make it so that each phone jack has its own extension. Essentially, this splits your lines into an infinite number of extensions so that a call can be routed to anyone in the building.

The Cloud Difference

A cloud PBX does the exact same thing, only it works virtually. Instead of running physical wires through your walls, you have a data server that knows which lines are yours and what devices are connected to each extension. This is perfect if you want a more open office with fewer wires. It’s also useful if you still want to have extensions instead of purchasing tons of separate lines.

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So, does getting a PBX make sense for your business? Let’s consider a couple of cases. First, we’ll look at the most common application: Enterprise VoIP service.

Enterprise Cases

Big businesses often have lots of phones. A cloud PBX makes perfect sense in these cases. If you have a large physical office space and you need to have control over many phones, you’ll definitely want a PBX. The biggest advantage of going to the cloud is that your IT staff can manage all of your locations’ phone lines and extensions from anywhere. If you have multiple offices, this greatly simplifies your phone system management.

A traditional PBX resembles an ethernet switch. If you need to change a phone’s extension, you have to physically move wires to do so. But with a cloud PBX, you can just log in, make a few clicks, and now calls will be routed to another line or device. It’s that easy.

SMB Cases

Do small and medium-size businesses need a PBX too? Even though it’s an obvious boon to big businesses, the little guys can make use of it too. If you have a small office, it can save you money as opposed to wiring up phone lines or buying more virtual lines. In addition, it gives the impression that your company is much larger when you have several extensions, even if they all go to the same phone.

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Ultimately, we’d recommend a hosted PBX for big businesses and any small or medium business with high call volume and a physical location.

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