Generally speaking, a Hosted PBX refers to a voice solution where the call control equipment resides in a service providers location, which business customers connect to via voice-over-internet-protocol (VoIP).
More plainly, a business customer can choose to pay a service provider to provide all of the necessary equipment to run a telephone system. End users connect to the service via the internet (usually). VoIP phones can be used from the office, at home, or any where there is a reliable internet connection. The end-user does not have to pay a large one-time price for all of the processing equipment, but must pay a never ending monthly charge and generally must purchase all of the phones.
Here are some pros and cons of a Hosted PBX:
Pro
Con
One big thing to consider when going with a hosted solution is the company behind the product. You need to be sure that they will be around for the long haul and have the finances to succeed. There have been several cases where service providers have gone out of business, seemingly overnight, leaving there customers stranded. In 2007 SunRocket suddenly closed shop leaving 200,000 customers scrambling to find service.
VoIP has many forms and is here to stay. It can be made to work right and to save your company a lot of money. If you think a hosted solution may be right for your business, contact me and let me help!
Larry Nazworth