Hosted PBX is a service where the call platform and PBX features are hosted at the service provider location. The business end users connect via IP to the provider for voice service is a telephone system that provides calling features while eliminating the need for on-site equipment. Hosted PBX only requires the purchase and use of IP phones; which is why VoIP is often referred to as “Plug and Play”.
Hosted PBX comes with many calling features, such as: Do not Disturb, Call Conferencing, Call Forward, etc., advanced calling features include call forwarding which is also referred to as Find Me Follow Me (FMFM) in which forward calls can be sent to several phones simultaneously, ensuring that you never miss a call.
A SIP Trunk is an alternative to connecting to the PSTN (Public Switched Telephone Network) which allows the user to maintain their existing telephone system and existing telephones. A SIP trunk enables the user to reduce costs by switching from traditional copper wires over the PSTN to the internet.
Check out this useful table to better understand the differences:
| Hosted PBX | SIP Trunks | |
| Equipment Needed | SIP phones | |
| Ease of Installation | Moderate | |
| One-Time Installation Costs | Moderate (can sometimes be lowered if your service provider offers a trade-in on your existing phones) | Low (as long as you have an existing PBX) |
| Monthly Cost | Low to Moderate | Low |
| Features | Advanced calling features and advanced call-routing capability | Some advanced features may be limited to the existing PBX |
| Scalability | Easy to add, move or change extensions and phone lines | May be limited by the PBX |
| Maintenance | Includes remote, automated, maintenance and upgrades | Maintenance and upgrades are still required on the existing equipment |
