A hosted PBX is a Private Branch Exchange (a.k.a. phone system, unified communications solution) which is not located within your physical office. Without losing any control of your phone system a hosted PBX allows you to remotely host the PBX software in the cloud. The hosting itself could be offered by the PBX vendor of a third-party hosting provider.

Hosted PBXs are perfect for SMBs who do not have the infrastructure or the internal resources and know-how to manage and maintain the PBX themselves.

• Lower or zero set-up cost, no hardware required
• Providers manage & update the system
• Easily add virtual numbers
• Easily move the phone system – no data hardware to manage
• Loss of internet does not affect business operations – provider can send calls to voicemail

An on-premise PBX is exactly what the name entails. A PBX that is installed on-premise, i.e. physically in your office building. On-premise PBXs are deployed on servers that belong to the business and are managed by the business itself. Therefore, any business choosing to use an on-premise PBX should first ensure that they have the required infrastructure in place, such as servers, network, devices etc.

On-premise PBXs are better suited for large organizations which have the infrastructure, resources and know-how to configure and manage internally.

• User has full control over the PBX
• All data and information are in the user’s hands
• Can use current phone carrier
• Simple tasks can be done without PBX provider, i.e., adding users
• Use SIP Trunks to save on calling costs