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.
Overview
- UniTel Voice
- Yeastar
- FreePBXHosting
- Convergia
- Jive
- Zadarma
- 8×8
- iTel
- XO Communications
- 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?

Key features:
- 30-Days Free Trial
- 30-Days Money-Back Guarantee
- 1 Phone Number
- Unlimited Minutes
- 1-5 Users
- Compatible with All VoIP Devices
UniTel Voice hosted PBX Business Phone System
UniTel Voice gives you the same great features of a traditional PBX business phone system but through the cloud. You also do not have to deal with the complexity of trying to manage equipment or update software that comes with a traditional PBX system.
As a virtual PBX, UniTel Voice is a great phone system for businesses of all sizes and budgets. Business owners can look, sound, and operate with the customer experience in mind. You can take your company’s phone system to the next level with the addition of essential business features.
With each customer call, your virtual PBX can greet the caller, transfer the call, or forward it without any hiccups. Your hosted PBX system ensures your callers reach the correct employee and department extension.
UniTel Voice works with your company’s existing phones and mobile devices. Wherever you are, be it at home, in the office, or on-the-go, you will never miss a call. Using a virtual PBX, your business can take calls anywhere.
Key features:
- 30-days Free Trial
- Access to YMP
- 20 PBX Instances
- 200 Extensions
- 50 Concurrent Calls (How many employees are using the phone at any one time.)
Yeastar hosted PBX Business Phone System
Yeastar hosted PBX enables your business to connect anywhere anytime with its free mobile and desktop softphone.
Adopt a virtual phone system you can access right from your smartphone, computer, or tablet. Unify communications with employees, remote offices, and teleworkers within a single phone system. Rid your business of the use of many applications and platforms.
Yeastar hosted PBX offers advanced PBX Features like Auto Attendant, Queue, Conference, or a Unified Communication Softphone (UC Softphone), and more. As a cloud solution, Yeastar provides users with an easy-to-use Linkus Unified Communications App. UC Softphones deliver consistent communication experiences across multiple devices.
Start-ups can add new users to their team’s communications systems as their business grows over time. Future-proof your telephone system with Yeastar hosted PBX.

FreePBXHosting
Starting Price:
- $19.99/month for VPS
- $50.00/month for Dedicated
2 Solutions:
- VPS (Virtual Private Server)
- Dedicated Server Solution
Key features:
- 30-Days Money-Back Guarantee
- Unlimited Bandwidth
- No Setup Fee or Hidden Fees
- Unlimited Extensions
- hosted in Secure Data Center
- Upgrade at Anytime
- SysAdmin Pro Module
- Endpoint Manager Module
FreePBXHosting hosted PBX Business Phone System
FreePBXHosting lets you start small and grow with ease of use, starting with affordable VPS packages. Choose to upgrade to a larger VPS when your company is ready. From there, you can move to a dedicated server. Embrace the simple upgrade process when switching to today’s business phone systems.
Users of FreePBX will never have to worry about server hardware again. Business owners have access to 5 dedicated server configs and a ton of upgrade options. You can have your new cloud-based PBX phone system up and running in less than a day. CyberLynk maintains that hardware for you, while you control the FreePBX configuration.
FreePBX provides customers with support from CyberLynk for your VPS or dedicated server.
Key features:
- Telephone Lines
- Caller ID / Name Screen
- Local and Long-Distance Calls
- Toll-Free Numbers
- Directory Listings
Convergia hosted PBX Business Phone System
Convergia hosted PBX provides virtual phone systems for small businesses and commercial enterprises. If you are considering updating to a new voice infrastructure, Convergia is what you need.
The hosted PBX business phone system gives you scalable, reliable, and feature-rich services.
You can choose from many groups and business functionalities. Features include Auto-attendant/IVR, Voicemail, Voicemail to e-mail, and Users/Extensions.
Business owners and managers can use the system to create predefined groups and ensure communication reaches the right department and teams.

Key features:
- North American Long Distance Calling
- Customizable Auto-Attendants
- No Busy Signals
- Keep Your Phone Numbers
- Voicemail to E-mail
- Conference Calling (up to three parties)
Jive hosted PBX Business Phone System
Jive hosted PBX is a cloud-based, virtual business phone system. It makes your organization’s phone services more efficient and easier to manage. With Jive, you no longer need to hold on to clunky and outdated phone equipment.
With a cloud-hosted Private Branch Exchange (PBX), your desk phones, cell phones, and smart devices work together. You can easily replace your old system’s hardware and manage the operation online or through the Jive mobile app.
Businesses can improve interactions with clients through robust call features, texting, and integrations. Keep your CRM and other software applications your company is already using and integrate them with your hosted PBX.
No matter the location, your team members can turn any site into a workplace. After transitioning to Jive’s hosted PBX, you can reduce your current expenses and start taking calls anywhere.
In gaining the ability to connect with others from any location, it is clear that Jive Voice puts voice and video conferencing first. By making both vital features take priority, it reduces Internet traffic and congestion. Your business can create communication processes that allow conversations to flow easier and faster.
Key features:
- Unlimited calls to the US/Canada
- 4 Virtual phone numbers
- 1 Toll-free numbers included
- 50 Maximum users/devices (int lines)
- Free CRM integration
- 24/7 Customer support (chat, tickets, phone)
Zadarma hosted PBX Business Phone System
Zadarma hosted PBX or Cloud PBX provides businesses with ready-made phone solutions. Your company saves money by not having to buy expensive equipment. Zadarma also prevents you from dealing with a complex business phone system. Going virtual means you no longer require telephone wires.
Easily connect to the phone system network via the Internet while your phone system is created and maintained on the operator’s servers.
Use essential features like Voice menu (IVR), Call Recording, Call Statistics, Voicemail System, Conditional and Unconditional Call Forwarding.
Zadarma hosted PBX also provides businesses with Call Pick-Up, Call Transfer, Auto-Response Text Setup, External Phone Line Connection, API Interface, Automated Fax Receiving, plus so much more.
Key features:
- Unlimited Calling
- Mobile Apps: Android, iPhone, iPad
- Auto Attendant
- Online Call Management
- Conference Bridge
8×8 hosted PBX Business Phone System
8×8 hosted PBX offers advanced phone features like extension dialing, auto-attendant, ring groups, call recording, and Internet faxing. Your team can communicate and collaborate freely with features they can actually use. A valid phone system with quality features helps customers to connect better with your business.
Business owners can empower their employees to work together more effectively, even from different locations. Through the use of collaboration capabilities like web conferencing and video meetings, employees can stay connected in and out of the office.
A virtual PBX business system takes your phone services to the next level. No longer does your company’s phone system require the use of traditional wires or clunky hardware. When you choose 8×8 as your phone solution, you gain the mobility and flexibility every modern-day business needs to connect with today’s customers.
8×8 hosted PBX phone system offers your business exactly what it needs — excellent communication. Employees will get to use features like a softphone, SMS/texting, and instant messaging/chat.
Your business teams will know when other employees are around with useful features like Presence Detection.
Integrating with 8×8’s phone system is easy. Integrations allow for you to continue using digital tools like Zendesk & Netsuite CRM or Salesforce CRM.
Key features:
- Outbound Caller ID
- Call Labels
- Public Address
- Vanity Numbers
- Toll-Free, Local
- Voicemail Blasting
iTel hosted PBX Business Phone System
iTel hosted PBX helps businesses to design a modern office that customers can use to connect to you. Your staff no longer has to sit behind an office desk to conduct business. Employees can work remotely, collaborate, and connect with leads while on-the-go. Location cannot dictate employee work schedules anymore.
As you review your traditional, on-premise system, you will soon realize it no longer serves you or meets your customer’s needs.
iTel hosted PBX features also include Video Calling, Personal Find Me and Follow Me, Channel Spy, Burst Billing, and Call Tracing, plus a lot more.
As a cloud-based phone system, it uses your IP network to meet your company’s needs. The system goes way beyond what a traditional phone system or on-site PBX system offers.
With iTel, your phone system becomes a single platform for your entire business voice system. Staff can make and take customer calls wherever they work.
The iTel hosted PBX system comes with a broad range of features, which your team can easily access via its user-friendly online portal. As long as you have Internet service, you can update your call flow, user settings, reporting, and auto attendant from anywhere.

XO Communications
- Starting Price: Contact Provider for a Quote
- Solution: XO hosted PBX
Key features:
- Anonymous Call Rejection
- Anywhere Plus
- Automatic Call Back
- Call Forwarding
- Call Return
- Call Transfer
- Call Waiting
- Caller Line ID Delivery Blocking
- Do Not Disturb
- Privacy
- Abbreviated Dialing
- Three-Way Call
- Voicemail/Voice Messaging
XO Communications hosted PBX Business Phone System
XO hosted PBX is a cloud-based Unified Communications (UC) and Private Branch Exchange (PBX) solution for small businesses in the United States. This solution has several vital features every business needs.
Your employees and customers will appreciate the use of alternate numbers, anonymous call rejection, automatic call back, call return, call transfer, call waiting, and multiple call arrangement functionalities. XO hosted PBX also offers you the use of an abbreviated code to call back the last person you spoke with, and employees can transfer calls while already engaged with others.
When you choose XO hosted PBX as your phone system, your business receives an advanced communication system. XO uses the latest cloud technology to deliver a crisp, high-quality voice.
XO Communications is a Verizon company that provides technology that will help your business to compete in a hyper-connected economy.

Atlantech Online
Starting Price: Contact Provider for a Quote
3 Solutions:
- hosted PBX License Features
- hosted PBX Group License Features
- hosted PBX Add-On License Features
Key features:
- Call Center
- Automatic Call Distributor (ACD)
- Call Forwarding
- Basic Call Logs
- Directory Number Hunting
- Calling Number Delivery
- Auto Attendant
- Receptionist
Atlantech Online hosted PBX Business Phone System
Atlantech Online hosted PBX is a virtual, unified communication system that offers a robust set of business telephony features. Atlantech hosted PBX business phone system provides seamless integrations with advanced telephony features, including Call Center and ACD.
Some essential unified communications Atlantech offers include Find Me/Follow Me, Auto-Attendant, and Call Center functionality. Your business can receive business calls directly on their mobile devices.
Stay in communication with customers and staff from a call center, office, home, or while traveling with this PBX phone system.
Conclusion
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.




