Hosted IP PBX vs. Traditional Phone Systems

Is communication a big chunk of your investment in your company? Are you spending a lot of cash, communicating among your dealers and with your customers? Then here is a wonderful solution for you. IP PBX i.e., Internet Protocol Private Branch exchange is a PBX that provides audio, video, and instant messaging communication through the TCP/IP protocol stack for its internal network and interconnects its internal network with the Public Switched Telephone Network (PSTN) for telephony communication.


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Phone System:

Traditional phone system is a voice grade telephone service that is based on analog signal transmission. It was earlier the basic form of communication both domestic and commercial before the advent of other advanced forms of communication technology.

IP PBX (Internet Protocol Private Branch Exchange)

After the development and easy availability of internet, the IP PBX has become a revolutionary leader in the field of communication, especially commercial. It comes handy with long distance communication which also includes overseas communication which fosters commercial growth and is economical. The IP PBX has been increasingly used for commercial purposes especially by multinational companies.

Hosted IP PBX

Hosted PBX is a service where the call platform and PBX features are hosted at the service provider location. Hence Hosted IP PBX is a service where the call platform and PBX features are hosted by the service provider. A hosted PBX allows employees to work from their homes or cell phones while still being connected to the same office

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telephone system. This Hosted IP PBX can work with your existing telephone service or can completely replace it.


Voice-over-Internet Protocol (VoIP) is a methodology and group of technologies for the delivery of voice communications and multimedia sessions over Internet Protocol (IP) networks, such as the Internet. It converts analog audio signals to digital data for transmission over the internet.

There are three different ways in which VoIP service is used

ATA (Analog Telephone Adapter) : The ATA allows to connect a standard phone to r internet connection for use with VoIP.
IP Phones: IP phones have an RJ-45 ethernet connecter instead of the standard RJ-11 phone connecters. IP phones connect directly to your router and contain all hardware and software necessary to handle the IP call.
Computer to Computer: The easiest way to use VoIP. Several companies offer low cost software which can be used for this type of VoIP. The requirements are- the software, a microphone, speakers, a sound card and an internet connection.

Benefits of Hosted IP PBX

The main benefit is cost. There is no need for a large upfront investment by purchasing an office telephone system and maintaining it. The hosted PBX operates and maintains the office telephone system. A hosted PBX implementation is significantly more cost effective over the long run. Also, the employees can work from anywhere in the world, literally.

Another benefit is that the PBX service provider will take care of all the setup and installation .Many hosted PBX service providers may provide deep level of customization.

The setup of PBX solutions is quick as compared to a traditional telephone system. A hosted PBX is way more user friendly than traditional phone system.

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