What is Hosted PBX, and what are the benefits of HPBX?

Posted on 13. Apr, 2011 by Richard [archives]

If you’re reading this, 7 out of 10 likelihood that you’re planning something – a move, new install, upgrade, and you’re wondering if a Hosted PBX should play a role in your plan. If you’re just starting out your research, Googling “Hosted PBX” will be like opening a door to a room that is flooded to the ceiling with water. You are going to find yourself hit with a ton of vendor sites touting their particular services, forums, phone equipment sellers and the ever present wiki with +5000 words on the subject. Let me simplify it a LOT for you, so those sites can make some sense when you decide to delve deeper.

What is the PBX part of Hosted PBX?:

Put simply, a PBX (Private Branch Exchange) is the brain of an office’s phone system. Go to an office of 5 people or more and 19 out of 20 are going to have a PBX of some kind. The traditional PBXs are on a wall in the back of that office, connected to phone lines provided by a telephone carrier. When a call comes in, the PBX decides which phone the call gets sent to (i.e. the reception phone, an office admin in a cubical, or possibly to the hated attendant tree, where it takes 15 menus to get to a live customer service rep.) This PBX is purchased by the tenant, programmed by a tech the tenant hires, and installed on the wall.  Finally, the technician connects the telephone lines to the wall-hung box.

So what is Hosted PBX?:

So the brains of the phone system are in a box hung on the wall, routing all of your calls.  But what if your phone carrier did that routing for you, instead? If so, they would be hosting your PBX, hence “Hosted PBX!” That box will actually be a large Enterprise level server, managed and controlled by the carrier in a building potentially miles away from your office. No special box to install in your office. The way a carrier can do this is by using a form of telephone traffic called VoIP. The carrier communicates and routes calls to phones in your office via the Internet. When someone calls your number, the carrier catches that call first (obviously, since they’re your phone carrier), and then forwards it to a specific phone, multiple phones, voicemail, or the dreaded attendant tree – all via the Internet.

So what makes it special:

1. The Internet. Your phone service rides over the Internet. That gives you the potential to use your phones anywhere you have a SOLID Internet connection. Moving desks? No problem, just plug the phone into that other jack. Working from home? Plug it into your Internet connection at home. Out of state office? Different country?  You get the idea.  Your calls would route to your phone the same way, no matter what. That’s because your phone would be programmed to automatically ping the carrier’s server to tell it where it currently is, and route calls there. Here is a great use for it: You have a California and New York office. Send one of your NY phones to California, and all calls to that NY phone will start ringing there. All phones would have a unique ext. Dial the ext of the CA phone from NY and talk to each other for free – no long distance charges.  One thing to be aware of, though: Functionality will differ depending on the carrier you go with.

2. Mantained by the Carrier: Remember the traditional PBX? The tenant had to buy the PBX box, hire a tech to program it, install and then connect it to the carrier’s telephone lines. Have the carrier do all that. Any problems (phone SYSTEMS can have problems) are managed by the carrier, and can be fixed remotely 9 out of 10 times. No tech needed at your office.

3. Upgrades: A serious carrier will have a plan to maintain and upgrade the infrastructure of their Hosted PBX platform over time to account for growth, new features and age of their current equipment. Those costs are built into your service. With a traditional PBX, the office tenant has to plan and manage those same upgrades, including the purchase of new equipment and hiring of a technician to program and install those upgrades.

So those are the core strengths of Hosted PBX (HPBX). There are weaknesess as well, but thats not the title of this article and I want to keep it simple. By understanding the idea behind the service, all your subsequent research will more easily click. I will follow up with another simple article on the strengths/weaknesses of both Traditional PBXs and Hosted PBXs.

Posted on 13. Apr, 2011 by Richard[archives]