If you’re considering which business phone system to choose for your company, you’ll have heard the terms ‘Hosted PBX’ and ‘VOIP System.’ But what is the difference, and which is the most suitable choice for your business? In this blog, we discuss the differences and benefits of both systems.
What Is a Hosted PBX System?
Typically, businesses have an on-premise PBX, a literal box that your telephones plug into. A PBX (short for Private Branch Exchange) is typically a business’s internal telephone network. Users on a PBX phone system can communicate using internal phone lines as well as make and receive external calls.
Traditionally, intra-office telephone systems are analog PBXs; they use physical phone lines to handle calls. Pre-internet copper phone lines mean analog PBXs can’t use modern-day features like converting voicemail to email, screen sharing, or instant messaging. They also don’t support mobile devices, so they are best for businesses whose workers are on one site or location.
A hosted, or cloud, PBX uses the internet instead of a box-on-the-wall. Your calls no longer use telephone lines. Instead, they use an internet connection to a VOIP (Voice Over Internet Protocol) service provider.
What Are the Benefits of a VOIP System?
VOIP means a caller’s voice signal is converted to data, transmitted over the internet, and returned to a voice signal for the receiver. Replacing a traditional phone line with VOIP can be considerably more cost-effective, saving 20% to 50% on your monthly bill, based on our industry knowledge. Because VOIP systems use the internet, collaboration features like conferencing, screen sharing, and instant messaging are possible, as is connecting mobile devices as handsets. A VOIP system will integrate seamlessly with many CRM tools, Microsoft Teams, and other third-party systems, offering a unified communications approach for your business. A hosted PBX VOIP system is more flexible and cheaper than a traditional PBX, making it a great way to save money – especially for smaller businesses.
Are Hosted PBX and a VoIP System the Same Thing?
No, they’re not. A hosted PBX is a cloud-based telephone system that can replace your traditional on-premise PBX. VOIP is a method for placing calls using the internet rather than conventional telephone wires. Hosted PBX systems will use VOIP to operate, working together in unison.
By combining these two modern technologies, your business can take a unified approach to communications, increase business efficiency, and reduce your running costs. There are considerable benefits to running a hosted PBX using VOIP for many businesses. Contact our team at ARG Communications today to learn more!