Introduction to Business Hosted PBX

by | Jul 2, 2024 | Business

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Often small businesses can’t afford the start up costs of an advanced VoIP phone system. It is a pricy up-front cost but not with a business hosted PBX. When you heard about a business hosted PBX, the question pops up, “What in the world is that?” The idea that something of great value is probably slipping through your fingers as of right now is scary, especially when it can save you a lot of money as a new business owner.

Very small businesses don’t have a high volume of phone calls, but some businesses that are still categorized as small businesses do handle higher volume calls than they can afford to pay for. That’s where a business hosted PBX comes in. A PBX is a private branch exchange, which is basically a phone system without a switchboard. Users of a PBX share a specific number of outside lines for making telephone calls that are not within the business.

A lot of medium and large companies use a PBX, because it’s cheaper than paying a lot of money for an external telephone line at each telephone within the business. Another bonus is when you have a business hosted PBX, you can dial three or four digits to reach somebody within the business. This cuts down on a lot of memorizing and dialing, especially if somebody has to dial a lot of numbers in one day to reach everybody they need to reach.

A PBX is cheaper than getting an external phone line for each phone, but why would somebody use a business hosted PBX? A traditional PBX system is very expensive to set up. When you have a business hosted PBX system in place, you are saving money, because you don’t have to purchase all the expensive hardware involved in setting up a traditional PBX system. Smaller businesses can go with a business hosted PBX and still get all of the benefits that a traditional PBX system offers plus no upgrade charges, because they don’t have to change the hardware when the time comes.

While figuring out which company you should go with for business hosted PBX, remember that regardless of who you pick, you’d be saving lots of money and be able to have the same benefits that big businesses have. It’s a great investment, because there’s no investment, except maybe a contract with the business.