To figure that out, one must understand the concept of hosting as well as PBX. PBX stands for private branch exchange. Private bank exchange refers to a telephone exchange of a specific office, as opposed to a telephone company that operates for the general public. PBX allows for connection within a specific office while linking them to outside communications (the public switched telephone lines) with the use of trunk lines. A PBX usually includes an internal switching network, micro-controller for data processing, logic cards, telephone sets, switchboard, interconnecting wiring, uninterruptible power supply, and outside telco trunks.

In recent years, VoIP PBX has become popular, which uses internet protocol to complete communications. Additionally, PBX now has a range of functions including auto attendant, auto dialing, automatic call distributor, autodialing, call accounting, call blocking/forwarding/pick-up/transfer/waiting, conference calls, music on hold, interactive voice response, and a range of other features.

So what about hosting? A hosted PBX allows for PBX function without as much hassle. The Public Switched Telephone Network (PSTN) delivers PBX by utilizing the equipment within the telephone company’s exchange. This saves the customers money as they do not have to purchase and install hardware/software. Either the customer can lease the equipment or the telephone company can use existing equipment. Thus, customers contract out PBX functionality to the telephone company. Hosted-PBX systems offer the added features of allowing a single number to be used for the entire company, allows multimodal access, reduces need for on-site hardware maintenance and allows flexibility in scale.

Hosted PBX is particularly helpful for small businesses, who may be limited by costs. It requires very little time to set-up and to start working. It can streamline communication while saving money.