What are IP PBX, Hosted PBX and Hosted VoIP Phone Systems?

What in the world is IP PBX, Hosted PBX or Hosted VoIP and what does it mean for my business?

IP PBX typically refers to a traditional, on-site phone system solution that operates over an Ethernet network via Internet Protocol.  This is a representation of VoIP (Voice over Internet Protocol) technology that may or may not rely on connectivity to the public Internet.  Most IP PBX solutions have the ability to take traditional phone line services for connecting to the rest of the world.  Many of them are extremely user friendly and easy to administer.

Hosted PBX and Hosted VoIP are phrases for basically same thing – a virtual phone system arrangement that allows you to have many of the features and functions of a phone system without the investment, care and feeding of one.  The ability to provide “Hosted PBX” services over IP (Internet Protocol) networks like your LAN (Local Area Network) or the Internet is what has rocketed these solutions to popularity although variations of non-IP based Hosted PBX have existed for a long time.

The Hosted solutions work by essentially renting call and voice-mail processing power and features from a company that provides call processing services and interconnection to the rest of the world.   Typically these services are charged “per phone” and “per feature” in lieu of paying up front (or via a monthly lease payment) for a phone system plus the phone lines that feed it.  In many cases the Hosted Service provider will rent or lease the phone sets as well, further avoiding an up front capital expense.

Generally, another benefit is the connection between how many phones you have and how many “phone lines” is severed so that each person can now pick up the phone and make a call without worrying about the lines getting busy or somebody not getting through when calling in.  Smaller companies also get the benefit of phone system features like automated attendant, voice mail to e-mail the ability to use a laptop with a headset as a telephone station and other things.

The solution provider pays for the centralized hardware, phone lines, software upgrades, hardware maintenance, electricity and support staff and that is built into the cost of the monthly services they provide.

Some hosted providers offer volume discounts as the number of stations increases which helps them put the cross-over point, the point at which an on-site system and monthly service for it becomes more cost effective, further out.

In the case of an IP PBX, phone stations can be moved around an office by merely unplugging them walking them to wherever you need it to be and plugging it back into the Ethernet LAN.  Setting up VPN tunnels to remote users allows for phone extensions to be placed at remote locations.   A business owner, for example, might have a station at a home office and one on a desk at “the” office both operating off the same extension and ringing at the same time.  A caller would never know one was working from home.

In the case of Hosted IP PBX and Hosted VoIP a phone user may, in many cases merely unplug from their office network connection, take the phone to a different location (like home) and plug it into a network hub/switch there and, voila, the extension is moved to the new location without ever calling the “phone guy” or having to make changes.  [note: Providers and IP Phone hardware vary. Work with TelecomIndy staff to verify before purchasing and to ensure that certain things to preserve phone call QoS (Quality of Service) are in place - but, YES, it really is pretty simple when done right up front]

In either case, hosted or on-site, companies are generally able to vastly simplify their wiring infrastructures by not having to worry about maintaining both a voice and a data wiring infrastructure.  Many of the phone sets even have an Ethernet switch port built in which allows one connection to serve both your phone and your PC.  This is another way companies can save money and resources.

There is a lot to consider when sourcing VoIP Phone System options so please don’t hesitate to let TelecomIndy help you through the mine field and the analysis process.   We can assist with Hosted PBX solutions nationwide or with both Hosted and on-site VoIP solutions all across Indiana including Indianapolis, Ft. Wayne, Bloomington, Muncie, Lafayette and other cities and surrounding areas.