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What is PBX?

What is PBX?

PBX is an acronym for ‘private branch exchange’, so in simple terms a PBX is a private phone network used within an organisation. To put this in perspective, switchboard operators were operating the first PBX systems when they once routed calls by hand.

Why have a PBX?

For may businesses, a PBX system makes sense. The PBX allows for calls to be transferred internally and teams can place outgoing calls on shared phone lines, reducing the cost to the business of extra phone lines and associated additional monthly charges.

Hosted PBX systems also utilise VoIP (internet technology), operating ‘in the cloud’. With this setup, the phone features are many, including: voicemail to email; call queue monitoring; video conferencing; integrations with CRM platforms and much more.

Cloud PBX, hosted PBX or on premises PBX?

You’ve probably heard these terms thrown around in this space. To clear up any confusion, cloud PBX and hosted PBX are actually the same thing.

If you’ve decided on a PBX system for your organisation, the two available options are hosted (cloud) PBX or on premises PBX. Here’s a quick comparison of the pros and cons of each:

HOSTED (CLOUD) PBXON PREMISES PBX
Who is responsible for the technology required to host the system?The provider. Supports multiple locations. Infrastructure is offsiteIn-house staff. As the system is in one fixed location on the premises, it does not support multiple locations. These will need to be set up separately
Maintenance needs: software and equipment upgrades and supportManaged by the provider. Customer support is includedIn house staff are responsible for this
Financial aspectsThe set-up cost varies from provider to provider but costs are usually lower, or per user/lineHigher setup cost, including infrastructure needs. Potentially higher maintenance costs
Onsite hardware requiredOnly phonesPBX system and phones
Customisation of phonesMay be limited by what is required by the providerFull system customisation can be achieved

What’s the best PBX option?

Small to medium businesses stand to benefit more from hosted PBX, whereas the larger enterprise sized organisations are more likely to have the technical staff and budget available for on premises PBX setup and maintenance.

Keen to know more? Fill in the form and we’ll be in touch to discuss whether hosted or on premises PBX is the best option for you.

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