How VoIP Technology Proves Advantageous For Small Businesses

SIP Trunking vs Hosted PBX

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.

Here are some of the popular features of Hosted PBX:

  • Customized Auto Attendant: an automated greeting that can direct callers to more than one physical location
  • Group Hunting: when a caller wishes to reach sales, all the phones in the sales department will ring until someone picks up
  • Virtual Numbers: a business can create a local number in any number of cities which will then route back to their main office without incurring long distance charges


What is a SIP Trunk?


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.


SIP Trunking vs Hosted PBX:



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