Introduction: Business phone systems of the future

Business communication is not what it used to be with the heavy and cumbersome desk phones and their wiring wouldn t do anything but trip you. By 2025, businesses are trending to having PBX systems residing on the internet-this will be flexible, cost friendly and feature rich.

However, this is where most of the people begin to mix up the difference between Hosted PBX and Cloud PBX. Does not the same happen? Not exactly.

In this guide, we will simplify it down to simple language, compare both and make a decision on which is the best and most suited to your business.

What is PBX System?

PBX is an acronym referring to Private Branch Exchange which is equipment that controls internal and external phone calls of a company. Legacy system of PBX systems involved use of physical infrastructure whereas current PBX operates over internet; hence, one of the members of VoIP (Voice over internet protocol) network.

What does Hosted PBX mean?

Hosted PBX is a phone system in which the hardware and technology are not managed at the site of a service provider.

You access it through the internet.

Your provider provides maintenance, upgrade and security.

You just pay monthly subscription charge.

Ideal to: Companies that are interested in a plug and go, stress-free phone system with no hardware to deal with.

What is cloud PBX?

A Cloud PBX is functionally the same circumstance; nevertheless, it is strictly cloud based. There is no actual server devoted to your business- it is shared cloud server, which can be accessed anywhere.

Benefits include:

Scalability -Add or subtract lines easily.

Flexibility You can log in to desktop, mobile, or VoIP desk phones.

Decreased expenses- No excesses in terms of investments in hardware.

Best suited: Businesses which prefer the utmost flexibility and the capability to grow relatively quickly.

What are the Differences between PBX and Cloud PBX?

                                 Hosted PBX                                                         Cloud PBX

Location         Offsite server run by provider            Completely cloud based, no dedicated machine

Control           Controlled by provider                      Controlled online dashboard

Scalability       Billions            Trillions

Price        A subscription fee and service fees                        Pay-as-you-go or subscription

Flexibility        Less flexibile compared to cloud PBX    Great flexibility and suited to working remotely

The Selection of the most suited PBX in a Business.

Use Hosted PBX when:

You do not want maintenance to be your headache.

Members of your team have an office-based workforce.

You have a fixed monthly expense which you like.

Select Cloud PBX in case:

You have hybrid or distance teams.

You will require scalability and flexibility.

You need up to date functions and do not want to upgrade the hardware.

Final Thoughts

In spite of Hosted PBX vs Cloud PBX, they both provide dependable communication, so it is up to you to consider the size of your business, flexibility aspect, and budget.

Increasingly, in the world of business today, it is the Cloud PBX that wins out since it is scalable, remote-friendly, and can be easily integrated with other digital options. However, Hosted PBX remains a good option in the event that you desire a managed, set it and forget it type of service.