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Private Branch Exchange (PBX) is a telephone system within an enterprise that switches calls between enterprise users on local lines while allowing all users to share a certain number of external phone lines.
The hosted PBX is a cooperative level telephony system that connects business offices in the same way a traditional phone system does for a fraction of the cost. Thousand of the businesses are moving the technology out of their offices and into the cloud. All the web hosting companies whether small sized or large sized understand the importance of the hosted PBX.
There has been a shift from the PBX to the hosted PBX system as the former one required the payment for the PBX service provider, maintenance contract, payment for software updates and to the phone company for the phone lines. This was making it an expensive option for the companies which made them to use the hosted PBX.
Customers call in and are greeted by a custom auto-attendant. From there, the calls are routed to the person or department they need to reach. Calls can be routed anywhere, to any kind of phone.
What, you thought it would be complicated?
A local PBX system requires that the business purchase the equipment and store it on-site, usually in an equipment closet. Now they own the equipment, and are responsible to the maintenance and updates to the system hardware and software.
Hosted VoIP PBX, the provider houses all the equipment necessary to run the system. It can also be hosted on servers inside the company using it (on premise PBX). So it has a lower upfront cost, lower maintenance and regularly updated features.