By admin Published on: April 5, 2019 Updated on: IP PBX Software
Cloud Hosted PBX Software -Best and Easiest Way for Business Communication

Cloud Hosted PBX Software Is The Best and Easiest Way for Business Communication


Nowadays, Hosted IP PBX System have become a primary choice when it comes to choosing cloud-based phone systems. A hosted PBX software provides professional enterprise-grade business communication solutions. If we simply talk about IP PBX software, the best thing about it is that it suits businesses of all sizes ranging from small businesses to large enterprises. In this blog, we will get an insight into cloud-hosted IP PBX systems. By the end of this blog, you will be able to understand why a hosted PBX system is the best and easiest way for business communication. 

A cloud-hosted IP PBX allows smooth connectivity with extension dialing regardless of the location. It allows businesses to route calls (inbound and outbound calls) via IP Phones, VoIP softphone, and PSTN.


So, What is hosted IP PBX?

A hosted IP PBX, or hosted VoIP PBX software is a carrier-grade phone service provided over the internet. The service allows businesses to make and receive calls. With this IP PBX phone system, there is no need to install any additional wiring, hardware, or other tools. In simple language, a hosted PBX is an IP-based phone network that provides users with better mobility and features. 

Let’s get a sneak peek of the first hosted PBX software for businesses. In 1996, California-based Virtual PBX released the first hosted PBX system. The key features introduced with this system included:

  • Find me/follow me
  • Web portal control

One important thing to note about the first hosted PBX system is that the system does not use VoIP. Instead of VoIP, it relied on copper wires of the PSTN to connect within an organization. Companies that can’t use internet telephony or don’t want to use internet telephony, still use PSTN to provide a hosted business phone service.

Also Read: What is PSTN Complete Guide?

A hosted IP PBX not only lets businesses place and receive calls over the internet but also helps in routing the calls to the right destination. The IP PBX system routes incoming calls to the appropriate people or departments within the company. Using hosted PBX, one can get unlimited local and long-distance calling, which cuts down on monthly phone bills drastically. Moreover, it offers various advanced features such as:

  • Voicemail
  • Call transfer between employees
  • Auto-attendant, and more. 


How does hosted IP PBX work?

Well, a hosted IP PBX system works by moving a company’s phone and communication structure over a reliable VoIP provider. With this system, there is no need to set up individual phone extensions. Instead, a VoIP desk phone will take place of each phone.

Once you implement the hosted PBX, the PBX phones will connect to the PBX host through the internet. The connection supports the unified communications requirements of the entire office. It remains open all the time to place and receive calls. The VoIP service provider will provide all the key PBX features such as:

  • Call recording
  • Call routing
  • Conferencing, and more.  

Also Read: Top Multi-Tenant IP PBX Features and Benefits

The best thing about a hosted VoIP IP PBX system is that instead of using an exclusive phone, it lets users use any SIP phone for the utmost compatibility. The service provider is responsible for maintaining the entire phone system. In case one of the data centers stops working, the system will route the calls to another data center. This ensures that the phone system will always run smoothly. 

Since the service provider is responsible for configuring and maintaining everything, the users just need to log on to an online portal. Doing so will enable them to make and receive calls via the internet. Any changes in the settings can be implemented instantly within the online portal with just a few clicks of a mouse.


Reasons to choose a hosted IP PBX system

Whichever way one looks at it, a hosted PBX solution is far better for business communication. Hosted IP PBX system help businesses in improving their operational efficiency. It also lowers the risk chances as businesses need not manage or buy an entire on-premise PBX system. Here are some good reasons to choose a hosted PBX system for your businesses:

#1. The latest and the best

If you were to go in for an in-house proprietary solution you will need to upgrade at frequent intervals. Maintenance and upgradation are necessary to keep in step with changing technologies. However, this step necessitates costs and manpower. 

Hosted PBX software does away with all this since the provider takes care of maintenance and upgrades.

#2. Savings in cost and space

If you deploy a PBX solution in-house, you will need to invest in IT infrastructure. Besides, you need to pay for running costs as well as for the space that it takes up. 

If you opt for hosted PBX, you free up space inside your premises and reduce reliance on IT personnel. Besides, you can use existing computer systems and mobiles to use the software. Employees using their own mobiles can retain numbers. There are no upfront charges involved in hosted PBX systems. Call costs, especially international call costs, reduce dramatically.

#3. Globally available

With VoIP PBX software in place provided as SaaS, you can access the software from anywhere using any device. You can even use mobiles to make and receive calls. 

Cloud PBX is usually multi-tenant and enterprises with branches in various locations can use it with ease. Moreover, a multi-tenant IP PBX system provides multilingual capabilities to callers by customizing their inbound calls with advanced Auto Attendants.

#4. Least cost routing

The Least Cost Routing (LCR) feature of Hosted VoIP IP PBX system can help reduce business communication costs by up to 75%. Even VoIP service providers and ITSPs can enjoy the benefits of integrating their system with billing and payment gateway. They can use it to offer PBX services to local businesses.

Setting up the LCR gateway ensures smooth call routing through the most cost-effective way between various communications networks. This results in greater efficiency for the company and at the same time provides significant cost savings. 

#5. Scaling

One of the attractions of a hosted solution or SaaS is that you can scale up or down as per business requirements. This is a feature that most call centers and enterprises will appreciate. 

As compared to traditional telephone systems, hosted PBX is much easier to scale that too without incurring any extra costs. All the lines, extensions, features, and functionalities can be added simply via the computer interface.

#6. No downtime

In-house systems can go down and your communications come to a halt. This may result in the loss of efficiency as well as costs. 

In contrast, cloud hosting means redundancy, backup, and switchover that ensure continuity of communication and business. This is perhaps the most important feature for businesses like health care, stock traders, finance companies, etc. Any upgradation or changes can be done easily with minimal disruption to the business. 

With so many features to recommend, hosted PBX software is the best and easiest way for business communication. 


On-premises V/S Hosted PBX

When considering an IP PBX phone system, many businesses have a common question, whether to go for a hosted system or get an IP PBX software installed on-premises? Well, both ways you can enjoy the assorted benefits and features offered by IP PBX. In both ways, the technology supports cost savings and robust communications.

On-premises systems offer more flexibility and scalability for big and growing organizations. Besides, a professionally installed on-premise PBX ensures utmost security to the companies as there is no need for constant inspection. As per a report, about 94% of businesses have seen an improvement in security after switching to the cloud. On the other hand, hosted systems are more appropriate for organizations that don’t have an IT infrastructure.

If you are considering installing an IP PBX system on your server, then you must go for the HoduSoft IP PBX System. HoduSoft PBX Software can be customized to meet the precise needs of businesses. It is a perfect solution for medium to large enterprises. This is a perfect IP PBX system for enterprise that needs to make a lot of phone calls. The system can easily be installed on the client’s server and they can host the services from their end to their customers.



To conclude, there is no doubt that technologies like VoIP and cloud phone systems including hosted IP PBX systems have completely transformed business communications. Medium to large businesses can choose to install an IP PBX system on their server to meet their precise business communication needs.

As mentioned above, HoduSoft can be your one-stop destination to avail the best PBX system that can help grow your business.

For more details, or to get a demo for free, connect with HoduSoft’s team today!

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