What exactly is Hosted IP-PBX?

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What exactly is Hosted IP-PBX and how does it differ from a normal PBX?

To dissect the name of the latest buzz-word worthy telecom product titled Hosted IP-PBX first let’s compare the primary differences between IP-PBX and PBX. A PBX is a miniature switch that resides at the premise of the user and performs the function of switching calls from the users of the PBX onto a number of analog lines that connect to it. The analog lines connecting to the PBX terminate at the local CO where the call is then switched by the Telephone Company to its destination. A PBX also serves up features such as Caller ID, the ability to transfer calls between stations, 3-way calling, and on sophisticated PBX systems, an automated attendant that greets callers and presents them with a list of available extensions.

An IP-PBX differs from a PBX in that it does not use analog lines as its medium for traversing a call. Instead, an IP-PBX connects to a high bandwidth circuit such as a T1, converts the voice conversation to an IP packet, then sends and receives voice conversations via Internet protocol. This process is often referred to as IP Telephony. Hosted IP-PBX delivers the same common features as a traditional PBX and typically offers additional features that are only available via IP communications. Features inherent to IP-PBX are “Find Me Follow Me” which allows the user to designate multiple forward-to numbers on the fly, and “Unified Messaging” which is an enhanced voice mail retrieval platform where by users can access voice mail via a web portal, as an e-mail .WAV file, or traditionally at their handset or remote access code.

The term Hosted refers to the physical location of the IP-PBX. With traditional PBX systems, the CPU of the PBX resides on site with the user. This means that the user owns and operates the equipment. It also means that maintenance, management, and upgrades are the responsibility of the owner. Often, costly maintenance programs are offered by PBX venders as a means of additional revenue for the vender. A Hosted IP-PBX however, is located at the premise of the provider who is offering the Hosted IP-PBX service. The only equipment that resides at the customer premise is the IP handsets that communicate with the IP-PBX via IP telephony.

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