Hosted PBX or virtual PBX (sometimes called virtual PBAX) stands for a hosted Private Branch eXchange, which is essentially a highly advanced technology that allows phone calls to be re-routed through VoIP phone systems. In essence, hosted PBX is the call routing system that doesn’t require all the hardware to be held onsite because it is hosted elsewhere, by someone else. In terms of business telephone systems , it is an advanced, cost-effective way to manage inbound and outbound calls.

Who Invented It?

A privately held company in the US called Virtual PBX is widely credited with inventing the technology. It is spearheaded by Stephen Lange, a voice-based application developer who started the company in 1997.

How Does it Work?

The way hosted PBX works is through VoIP technology. Basically, this means that the routing system and technology (and all the hardware that goes along with it) is held by a third party host. Through this host your business sets up routing protocols, answering messages and time-specific voicemail services. This is done through the Internet as opposed to being conducted over telephone cables, which means that your PBX can be hosted from anywhere. In addition, calls can be re-routed to anywhere, including to home phones, mobiles and various locations around the country.

Benefits of Hosted PBX For Businesses

When any new technology comes along, the most important question to ask is how it an work for your business. Let’s have a look at a few of the ways in which hosted PBX can save benefit your company:

Traditional PBX systems are expensive to set up. The initial cost of a PBX is substantial to a company, which is why having the benefits of one is traditionally a privilege afforded to only large businesses with deep pockets. Hosted PBX carries with it none of the usual set-up costs, which means that small businesses can also take advantage of the technology and increase their efficiency and productivity.
VoIP technology means that your phone calls can be made through the Internet rather than through a telecommunications company. Up until recently, telecommunications companies have had a monopoly on the calls we make, which means that phone bills have been steadily creeping up. The potential savings involved in a hosted PBX that uses VoIP technology are mind-boggling.
Staff time and productivity. Hiring a receptionist simply to man the phones and route calls is a waste of your business’s (and your receptionist’s) resources and time. With hosted PBX you have the ability to remotely route calls which means that no matter where your employees are or how many phone calls you receive, your host will be able to direct them–all through the one phone number.
Hosted PBX is set to revolutionise telephone systems around the world, and save your business money while doing it.