What Are Hosted PBX Services? 

man using hosted pbx services

So, you are considering making the switch to a hosted PBX system but are still unclear what it all means. We are here to help. In this blog, you will learn all about what PBX means and the difference between hosted and non-hosted services. Spoiler: A ‘hosted’ service means an outside provider is taking care of your PBX system and provides the hardware (servers) and services to supply your phone system. Read on to learn more.  

What Are Hosted PBX Services? 

A PBX, which stands for Private Branch Exchange, is a private phone network used by a business, allowing for communication internally and externally. A PBX is on site, so there’s hardware located in the building. 

A hosted system does the same as the on-premise PBX but resides in the cloud. A hosted PBX service really means you don’t need the larger hardware in your office. Your phone provider maintains the technology and connection on their end instead. 

How Does a Hosted PBX Service Work? 

A hosted PBX uses IP communications which enables businesses to make calls over the Internet. Data is transmitted over the Public Switched Telephone Network (PTSN), over the Internet or a blend of the two. Plug in your phone into the cloud-enabled modem and it uses the Internet to transfer the data over the IP network to your provider’s data center (server). The call is then sent back out into the cloud (the Internet) and sent back to the end caller. 

Features Of Hosted PBX Services 

Hosted PBX unifies your communications. If you’re on the phone using your web app or desk phone, you can forward the call to your mobile device and keep the call going. That’s where the traditional phone falls short. There is a plethora of features which will enhance your current phone experience as well. The four listed below are just a few highlights of what can be expected from a hosted PBX solution. 

Call Forwarding 

Call forwarding directs an incoming call to a specific area. You can specify to forward a call to a colleague or voicemail if they are busy, in case of no answer, or if they are out of the office. 

Auto Attendants 

You have flexibility with the auto attendant feature. Create extensions for incoming calls to your main number. Have a sales number? Setup a hunt group for your sales team. If you want a custom message before forwarding to voicemail, feel free to set one up. Auto attendants are convenient and simple to set up. 

Mobile Apps 

Hosted PBX services have mobile apps which allows employees to receive their calls on their mobile devices, while appearing to the caller that they are calling the business line. Instead of a hardwired phone, you have a phone number that’s enabled on any device or network. 

The main benefit of the hosted phone system app is that business owners can buy a single device for both business and personal communications. 

Voicemail To Text 

Do you dread voicemail? If some people miss a call and get that voicemail notification, they tend to ignore it. Voicemail to text transcribes the message to text and delivers an SMS message. A hosted PBX uses natural language processing (NLP) to deliver instant transcription. 

Benefits Of Using Hosted PBX Services 

The benefits of using a hosted PBX service as opposed to a traditional phone number are numerous. Below, we will focus on three high-impact benefits associated with hosted PBX services. 

Lower Costs 

An on-premise solution will require upfront capital to buy the equipment (servers) and you’ll need an IT staff to maintain the equipment. With a hosted PBX service, all you need is a cloud-enabled phone and an Internet connection, and you’re set. The real expense is the initial purchase of the phones. The service is usually a per-user fee, so as you grow, just buy a new license. 


Your business and phone solution can grow and scale effortlessly. As your headcount expands, your phone system can grow right along with it. A traditional phone system will require additional hardware if you need to scale up. With more people working remotely, it’s simple to add users who are working remotely. It’s a perfect option for startups. 

No Boundaries 

With a hosted PBX, multiple locations are all unified. Offices in San Francisco, Israel, Italy, and New York can operate as if they are one. For remote employees, the office is wherever there is a stable Internet connection. It’s simple to connect international offices under one system and the admin can manage the dashboard from anywhere. 

Get Hosted PBX Services Through All Tel Networks 

If you’re ready to make the transition to a hosted PBX service, give All Tel Networks a call. We’ll discuss your needs, as well as your goals you want to achieve with an updated hosted PBX phone system. We want to make your upgrade as simple possible so you can continue to do what you do best; service your customers. Contact us today and let’s get the conversation started.