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10 Best Hosted PBX Phone Systems

By: Christina Davies
Updated on: November 18, 2022

A hosted PBX is a Private Branch Exchange, which is a cloud-based telephone service. It is where a provider manages and hosts PBX features and hardware at its off-site location. Some PBX features include call logs, call forwarding, and call transfer.

Businesses using a hosted PBX telephone system gain many advantages. Virtual services cut the need for installation, operation, and maintenance costs. It is also why many people refer to it as virtual PBX.

Many businesses choose their phone system to be a hosted PBX service. It provides flexibility, reliability, and excellent support. With many business cost savings, PBX service providers also save you money. Small companies can focus on their core abilities and priorities.

Business owners no longer have to waste time worrying about their phone solution. Instead, they can place their efforts on providing excellent customer experiences.


  1. UniTel Voice
  2. Yeastar
  3. FreePBXHosting
  4. Convergia
  5. Jive
  6. Zadarma
  7. 8×8
  8. iTel
  9. XO Communications
  10. Atlantech Online

What is the Difference Between on-premise PBX Vs hosted PBX?

To run a business with many employees, you need a multiline telephone system. Many companies are starting to step away from using traditional phone lines. Instead, they are switching to on-premise PBX or hosted PBX. Both of these business services will direct incoming and outgoing calls efficiently.

Since an on-premise PBX and virtual PBX systems are two ways of achieving the same end goal — to make and receive phone calls — how are they different?

Below is a brief breakdown of how both phone systems work and their differences.

On-Premise PBX System

An in-house or on-premise PBX gives your business more control. Many companies choose on-premise PBX for their phone system for this very reason. Phone lines and extensions are under the administration of your company, including integrations.

In-house PBX phone systems work well with other digital tools your team is already using. The integration of these tools is often a smooth one.

Without the need for outside vendors for maintenance, etc., you can change how your small company’s phone system functions as needed.

Before you choose this phone system, consider a few things. Think about the time, space, and maintenance costs your business needs to run and host an on-premise PBX.

The average cost of an on-premise PBX phone system ranges from $800-$1,000 per user

It is often a one-time cost that includes the phone, PBX, license, depending on the system provider.

As an in-house PBX is a phone switch located inside your company’s office, you will need to dedicate space for it. The size of an on-premise PBX phone system can vary. Some systems will only have 2 lines, while others might have thousands of phone lines.

Along with the cost and storage space, your business must also consider the maintenance of an on-premise PBX system. It is your responsibility to ensure it is running properly, which can be costly and time-consuming.

If you prefer not to deal with an on-premise PBX, then you will want a hosted PBX. Virtual or hosted PBX phone systems offer businesses similar functionality and features.

The key difference is the location of the two PBX phone systems, the system you choose will determine whether it is on the premise of your company’s location or in the cloud.

Hosted PBX Phone System

A hosted PBX is an Internet phone system that gives your business more flexibility. Your PBX service provider handles the technology of the hosted PBX system. Hardware does not need to be housed at your company as it resides in the cloud.

In return, service providers charge monthly fees. Service plans can include a minute package, per-minute call, or unlimited calling and other features. Extended features may come with extra costs.

On-premise PBX and hosted PBX telephone systems both provide many of the same essential business features like:

  • Call routing
  • Call switching
  • Call queuing
  • Auto-attendant
  • Phone menus
  • Greetings
  • Plus much more

After exploring the main difference between these two phone systems is the way they connect to business users.

If your business prefers to control and maintain its telephone network system, then choose a hosted PBX system. If you would rather not have the responsibility of managing or maintaining your business’ phone system, then use a hosted VoIP system.

Simply put, on-premise PBX is an on-site phone system you host and maintain. A hosted PBX is an off-site cloud-hosted service that requires a service provider to host and manage your company’s phone system.

There are many pros and cons to both PBX systems, but the decision is ultimately up to your business goals and needs.

As your business wants to evolve with its customers and remain competitive in this modernized world, it must embrace technology that offers mobility and flexibility. Hosted PBX solutions enable employees to work remotely, lowering overhead costs. They are also continually developing new features, which is not usually the case with most on-premise PBX systems.

If you agree, want an upgrade, and focus more on customers, take a closer look at hosted PBX providers. Find a cloud-based PBX phone system that is right for your small, multi-location, digital, or growing business.

Which hosted PBX Phone System is Best for Your Business?


A business phone system should not cause complications or distractions. It does not have to use equipment that takes up office space or needs constant attention from you. Your time, energy, and effort should instead be focused on customers. You must be in-tuned with their experience with your business.

Virtual PBX systems reside in the cloud giving access to business data no matter their location. With a wider range of workplace options, it is perfect for remote employees or for staff that is constantly on-the-go. Unlike an on-premise PBX, it offers geographical flexibility and mobility. Your employees can communicate, generate leads, and convert them from any location. You also do not have to stop working after business hours. Your business can make inbound and outbound calls from mobile phones or home offices.

Your business already has what a hosted PBX system needs, an Internet connection. Yet, your employees do not need to use that specific IP address to access the hosted PBX services. Staff can connect to your business phone system from any Internet or Wi-Fi connection.

By using a virtual PBX provider, your business can save on expensive phone equipment and scale operations easier. Leave the heavy lifting to the best-hosted PBX providers.

Refrain from placing your energy on the maintenance of an in-house PBX. Use a hosted PBX phone system and maintain your customers instead.


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