Get started with Hosted PBX

A hosted PBX is a Private Branch Exchange (PBX) that is delivered by a ‘hosted’ service. This means an outside provider takes care of your PBX system and provides the physical servers and services to run your phone network. Clarity Technologies Group, LLC offers a robust Hosted PBX powered by 3CX Phone System.

What is hosted PBX?

A cloud-based system is all maintained ‘in the cloud’, with the only hardware like IP phones, Analog Phones depending upon each company’s capital investment in your business.

pbxA hosted PBX provides the same services and features as an on-premises PBX but is installed a little differently. A hosted PBX resides in the cloud, meaning you don’t need a hardware system in the office, minimizing installation and maintenance. Your PBX provider or ‘host’ maintains the technology for you completely off-site, while still supplying you with a great connection and other benefits, which we’ll get to later in this guide.

How does it work?

A hosted PBX uses IP communications which allows businesses to make calls over the internet. There are three ways a hosted PBX works. It can transport data over the Public Switched Telephone Network (PSTN) over the Internet (this is helped along with VoIP technology) or a combination of both.

An example of the way it works is by plugging your phone directly into your VoIP enabled modem. The VoIP enabled modem uses the internet to send and transfer data. Information travels over the IP network and is bounced to the cloud, where it gets shuffled to your voice provider’s data center i.e. your server. The call is then pushed back out into the cloud and delivered to the end caller or the network they use.

What are the benefits of hosted PBX?

  1. Cost-saving: One of the main reasons businesses use hosted PBX is that it saves cost that come with an on-premise PBX system. As the hosted PBX is in the cloud and is managed by your provider. This eliminates installation, hardware and maintenance costs. All these costs are included in the hosted PBX package. Maintenance and software updates are all managed externally, leaving you to focus on your business. This is great if you’re a small business or a startup.
  2. Features: A hosted PBX comes with lots of amazing features that benefit your business’ communications and overall, your corporate image. A hosted PBX provides you with features like call routing and switching, auto attendants, phone menus, conference calls, voicemails, greetings, call queuing and recording.
  3. No office boundaries: No matter where your employees are, whether in the office or working from home, they can still connect and make contact through the hosted PBX system. This is a preferred system for companies who have remote workers and employees who are constantly on the move.
  4. Scalability: With a hosted PBX, businesses can adapt their system as their business grows and develops. For example, if your number of employees rises or drops, you can add or remove lines and extensions through web-based portals.
  5. Easy to use: The main reason hosted PBX is so easy to use is that all the maintenance, equipment and upgrading is taking care of for you by your provider. You don’t need an employee who specializes in the system, as any issues or improvements can be instantly made by your provider, meaning you don’t have to do anything at all.

What equipment do I need?

For your hosted PBX to work, all you need is broadband access, a router, and compatible handsets. One of the most appealing factors of hosted PBX is the lack of equipment that you have to manage and monitor yourself. As your provider takes care of equipment and the system is in the cloud, you don’t need any physical equipment in the office. All you need is an internet connection and handsets that work with the system.

To set up a hosted PBX, first you need to find out how many phone extensions you’ll need. If this number changes, your provider will add and remove as necessary. Next is to upgrade your internet. If your current internet supply doesn’t work well with the amount of calls you need, upgrade it to one with better broadband, faster speeds and higher bandwidth. Finally, choose a supplier and the equipment, and set up is taken care of for you.

Traditional PBX vs Hosted PBX:

The main difference between a traditional PBX and a hosted PBX is that the former is on-site, whereas the latter is in the cloud.

The traditional PBX is installed in your office, so you have complete control over your system. This needs to be managed by your own personal in-house team if any problems arise. A hosted PBX resides in the cloud and is managed completely off-site by your provider, making it easy to manage and minimizing maintenance costs.

Who should consider hosted PBX?

Hosted PBX systems are ideal for small to medium businesses and start-up companies. Hosted PBX is easy to set up, comes at a good and competitive price and offers a great range of features that will get your business off to a strong start. As a provider manages the system, you can focus with developing your company and using your phone system to build a strong and reliable brand voice.

pbxHosted PBX is also good for expanding businesses. It is designed to grow with your business, so when your business starts expanding, you can add lines and extra features when you need them.

Can a hosted PBX really help my business?

As mentioned above, a hosted PBX is perfectly suited to small or startup companies to help them in achieving their goals and make them look professional from the get-go. A hosted PBX does so much more than just providing a means of communication – it also helps your business function as a whole. Below are some examples of how a hosted PBX can help your business:

  1. Stay connected wherever you are:

    When you’re starting a business, you’re constantly running around trying to get everything sorted. With a hosted PBX, you can make and answer calls wherever you are and on whatever device you’re using, so you don’t have to stay routed firmly in one place. So, if you’re on the train to a meeting or working from home, you’re always accessible. This is also beneficial if you have a lot of remote workers or a growing team to manage.

  2. Save money:

    As we’ve mentioned all through this article, a hosted PBX costs less money than an on-premise PBX. There’s less equipment and maintenance costs involved, and the setup costs are significantly lower. As you hire new staff, one employee that you won’t need to look for is an IT specialist. While you should have an IT department for your business, you won’t need any staff members that are specifically hired to manage the hosted PBX system.

  3. Endless features:

    Having innovative and endless phone features is great for any business. With a hosted PBX, you can take full advantage of the incredible features that comes with it. These features make your company look bigger and more professional which is great if you want to give the impression that you’ve been in business for a while. With hosted PBX features, you can juggle video conferencing, hunt groups and voicemail to email functions (to name a few), making your business come across as impressive and organized. This is especially helpful for companies with customer service teams or call centers.

  4. Add as you grow:

    With a hosted PBX, you don’t have to worry about buying new equipment or the maintenance of adding a new line. You can add more features and lines as and when you need to and without too much hassle. A hosted PBX is easy to scale up or down, requires minimal work or costs and helps to future proof your business.

  5. Stay protected:

    Hosting in the cloud means you don’t have to worry about what happens if your technology fails. Everything is securely encrypted and kept safely in the cloud, protected by your provider. As your business grows, so do your documents, services, employees, passwords, etc. If anything were to go wrong, you still have uninterrupted access to what you need and you can restore your systems from online backups.


What is hosted PBX?

A hosted PBX is a Private Branch Exchange (PBX) that is delivered by a ‘hosted’ service. An outside provider ‘hosts’ your PBX system and provides the physical servers and services to run your phone network.

How much does it cost?

The cost of a hosted PBX depends on which provider you choose to go with. Typically, you make a monthly cost for your hosted PBX. Click here to get a quote for our latest hosted VoIP phone system, Wave.

Are there any downsides to hosted PBX?

A downside to a hosted PBX system is that you have less control over it than you would an on-premise system. However, this depends on how much control you want over your phone system and if you’d rather someone else take care of it for you. Another downside is if anything goes wrong with your hosted PBX, you will have to wait for support and may experience loss of services if the provider’s network goes down.

Can I use my existing internet service?

Yes, but it should take care of the bandwidth requirements works well with the system and the amount of scalability, calls and services you require. If it does not meet the requirements, you’ll need to upgrade your internet to one that’s faster and has better broadband and bandwidth. You can check your internet speed by searching for speed test tool on Google.

How much internet bandwidth do I need?

This depends on what you want to use your system for. The minimum speed for VoIP calls is between 90kbps (kilobits per second) to 156kbps.

What is the difference between PBX and VoIP?

A PBX is a private telephone network used within a company that provides valuable added services and connects calls using standard telephone lines. VoIP is a technology device that helps in making and managing calls over internet. Both of these can be combined.

Is hosted PBX better than on-premise PBX for my business?

It depends on what want from your business and level of privacy and security your organization requires. If you prefer to have all your equipment on site, on-premise is for you. If you prefer to have a managed PBX, a hosted PBX system is better suited. Of course, there are other factors that are involved (see our pros and cons diagram above) but this is the deciding factor when choosing between the systems.

What are the other names for hosted PBX?

Virtual PBX, Cloud PBX and hosted voice are all other names used or associated with hosted PBX.

Clarity is proud to have been providing On Premises and Cloud Hosted Telephony to the America’s and the world since 2006. Our clients are worldwide and currently using our Unified Communications platform with 3CX Phone System. Clarity is also a proud to be an authorized Microsoft 365 service provider. Select the UC that fits your business needs. Clarity Technologies Group, LLC surpasses expectations.


Call Clarity at 800-354-4160 today or email us at [email protected]. We are partnered internationally around the globe and we are open seven days a week 8:30 AM to 5:00 PM EST/EDT. and

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