Difference between Hosted and Virtual PBX Phone Service

Difference between Hosted and Virtual PBX Phone Service

It is a general misconception that all cloud-based systems are the same. But, in reality, there are different kinds of cloud-based phone systems. Two of the most common types of cloud PBX (Private Branch Exchange) are Hosted PBX and Virtual PBX. No matter which option you pick, cloud phone services can help businesses of all sizes to drop their upfront cost.

This is one of the biggest advantages of virtual phone systems and a very important function for businesses because, nowadays, many people prefer to work remotely. This allows them to have access to do inbound and outbound calls from everywhere and anytime.

A hostedsystem is a cloud-based which is accessible through an IP network. Instead of being responsible hardware, software, maintenance, training, and much more, a hosted phone systemservice provider takes care of it all. Such a system is managed of-site completely eliminating the need for IT experts and installation charges. In addition, a hostedsystemprovides businesses with the ability to manage their phone system through a user-friendly control panel. For such reasons, hostedphone systems have become popular solutions among growing small to medium-sized businesses.

A virtual PBX is a phone system which uses VoIP (Voice over Internet Protocol) technology for internet calling. This kind of PBX doesn’t need any large equipment. A user can activate virtual PBX with gateways and certain hardware or software. The connection occurs via the local network or the 3G/4G network on the Smartphone. A virtual PBX has several functions of a mini PBX, but it does not require particularly expensive equipment and complicated technical hardware. Other than providing a quick and reliable phone connection, it allows businesses to establish offices or call centers in any part of the world without needing a physical address.

While both Hosted and Virtual PBX have similarities, there still are some differences between the two which we are going to discuss.

  1. Virtual PBX Transmits Only Incoming Phone Calls

Virtual PBX works by rerouting incoming calls to existing landlines, mobile phones or extensions via an automated call attendant. Basically, a VoIP allows a business to transfer calls and routes them to the right person or department within the organisation.

A business has to use another way to make and manage their outbound phone calls. Hence, the business needs to pay extra for calls which employees make along with Virtual PBX charges, through another telephone company.

  • Hosted VoIP PBX Offers Inbound and Outbound Calls Both

On the contrary, a hosted phonesystem provides businesses with inbound and outbound phone calls both, which makes it a complete business telephone system. Such system can replace the existing telephone companies and allows workers to make a high volume of phone calls despite their location.

  • Technology Maintenance

Since a virtual PBX requires phone lines for outbound phone calls, there’s a need for continuous maintenance on behalf of IT employees within the organisation. While a hostedsystem frees up a business from having to maintain and manage phone lines and handle telephone companies. Everything is managed and supported by a cloud service provider.

When deciding which PBX system is right for your business, you need to consider factors like the size of the business, the number of outbound phone calls; scalability needs and if there are different office locations.

  • Hosted PBX Offers More Enterprise Features

With a hosted phone system, businesses can use a range of enterprise-grade features. These calling features include three-way conferencing, VoIP phone number, call forwarding and extension dialing to reach certain people. This can help increase the efficiency and productivity of businesses. While a virtual PBX system doesn’t provide any of these calling features. Furthermore, a Virtual PBX VoIP phone system lacks the ability for people to use phone extension dialing in order to connect.

Functions of Virtual PBX

  • Offers a limited number of extensions
  • Call management
  • Records voice messages
  • Handles only inbound calls
  • May not include international/long-distance coverage
  • Places callers on hold if they cannot reach a specific extension if the line is busy
  • Plays music or customised business message while a caller is on hold
  • Transfer calls internally between users

Functions of Hosted PBX

  • Handles both inbound and outbound calls
  • Unlimited number of extensions
  • Includes international/long-distance coverage
  • More call control features and services
  • Eliminates the requirement for building and managing an in-house PBX system
  • Enables business communication requirements to grow seamlessly