What Is the Difference Between Hosted PBX and VoIP?

It’s a common misconception that a hosted PBX is the same thing as a VoIP, and that’s simply not true. They’re very different things, and sometimes you’ll favor one or the other. We aim to explain the differences between the two below, and that should help you choose the best for your business.

What Is a Hosted PBX?

What Is Hosted PBX?

Most businesses have a PBX on premise. It’s a box on the wall, and you plug your telephones into it. However, if your PBX is hosted, then your telephone system will be cloud-based instead. This lets you reduce the cost of running your business, sometimes dramatically.

The premise is simple. Your company office phones and mobile phones connect via your hosted system, and that’s connected to the internet. The internet then connects to a telephone exchange. It uses your broadband connection to ensure your phones are all connected to the cloud, and this cloud mimics the box on the wall set up.

Why You Might Want This

The benefits of this system include flexible packages, cheap cost per phone, and no maintenance. It’s a great money saver, It’s delightfully flexible, and it’s far more modern than traditional PBX.

What Is VoIP?

what is voip?

Voice Over IP is another way to transmit voice calls via your internet connection. The phones connect via IP technology, and this resembles how computers connect to the internet and websites. Rather than your calls traveling through your internet connection and the telephone lines, they only travel through the internet and IP telephone the lines.

A Voice Over IP essentially sits on top of your already existing internet connection, and it has many similarities to a cloud-based PBX. This is a fair comparison, as a cloud-based PBX uses a Voice Over IP connection when you receive and make phone calls.

Why You Might Want This

Businesses that use this system have fewer telephone lines, and this substantially cuts their running costs. You also have a reduced charge per call, as the system often comes with minutes-based packages to offer you the best deal possible.

What Is the Difference Between a Hosted PBX and a Voice Over IP?

The two systems appear similar, but there are differences between them. The former is a phone system that is cloud-based, but a Voice Over IP is a phonecall making method. The hosted PBX uses Voice Over IP in its functioning, and they work together nicely to serve all of your phonecall making needs.

Increase your business efficiency and drastically slash costs by combining these technologies. In the end, you’ll end up with a telephony environment that has more flexibility, lower running costs, and a custom-built system that benefits your business. However, there are many more subtle differences that we can go into more detail on, so we’ll do that for you below.

Top Differences Between PBX and Voice Over IP

1. Upfront Costs

Installing PBX on-site is a big project, and but thankfully, if your PBX is hosted, then it’s less of an ordeal. However, you’ll still need an uninterruptible power supply, extremely pricey routers, software, Voice Over IP gateways, and more. However, going with Voice Over IP is an easier and more cost-effective process. The only thing you need to invest in is IP telephone devices.

2. Running Costs

Voice Over IP providers generally have the same model as a regular mobile phone plan. It’s a subscription-based service. This lets you tailor your plan and your costs to suit your business, and that brings your running costs way down. Any form of  PBX will cost more than this, as it’s not always a subscription-based service, and there’s plenty of maintenance involved.

3. Call Quality

You can expect HD voice calls with Voice Over IP. The system uses PSTN’s audio codec to provide this quality. If you have a questionable internet bandwidth or are dealing with network configuration errors, then your call may be lower quality for a while, but this issue will always be fixed quickly.

However, if you use a PBX system, then the quality of a lot of your hardware will determine the quality of your calls. Using Voice Over IP is a more reliable method of keeping your calls high quality.

4. Reliability

Both systems are incredibly reliable, but in the end, it comes down to the quality of your IT team or providers. Setting up PBX is usually incredibly reliable, but you need highly skilled IT workers to do it. Voice Over IP Reliability is in the hands of your provider, so you want to go with someone with a good reputation. We’ll be happy to help with that, as everyone we work with has a fantastic reputation.

5. Scalability

You can rapidly scale your technology with Voice Over IP. You can add more users to your plan, order more compatible telephones, and so on as needed. The most difficult thing you’ll face when doing this is adding a network switch or getting a better internet plan to support all of the new connections. You can even use the same Voice Over IP plan across multiple offices or branches.

It’s not quite as simple with PBX. The service may be cloud-based, but you still need extra phone lines, and in some cases, you’ll need an entirely new PBX system.

6. Security

The security of your Voice Over IP will depend on how good your service provider is. All of the service providers we work with have incredible security, so you’ll never have to worry once you contact us. PBX alone is slightly less secure, but a great service provider will be able to combat any security woes that you face.

7. Domestic Calls

Making domestic calls Is easy with Voice Over IP. Many plans treat all local calls equally. Long-distance and local calls are typically treated the same once they’re all domestic, but it does vary depending on your plan and your service provider.

If you have PBX, then this can differ. Some long-distance calls will have per minute charges as opposed to calls made within your local area. Again, though, it depends on who’s providing your hosted service for PBX.

8. International Calls

You often have to pay regular phone company rates for international calls with PBX, and this is incredibly expensive. However, international call rates are typically much lower with Voice Over IP. Talk to your service provider about the best plan for you when it comes to making international calls, and you’re sure to get a great deal.

Which System Is Better?

We feel that Voice Over IP is the best system to use, as it’s more secure, more cost-effective, and the plans are flexible all around. However, what’s best for your business will depend on how you choose to run your office. We can say that choosing Voice Over IP will likely be the easiest choice for most businesses, and we can’t recommend it enough for your needs.

Contact VoipVirtual to shop your VoIP options. We’d love to help you out with everything you need. We can help you find the best phone system to fill your needs, and we’ll get you a personalized quote to ensure you know what you’re getting into when shopping for Voice Over IP.

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