KompareIt > Business > Office Equipment > PBX vs Regular System

What’s the Difference Between Hosted PBX and a Regular Business Phone System?

Until recently, almost every business used traditional Private Branch Exchange (PBX) phone systems. PBX systems rely on telephone hardware and switches to route calls. That hardware must be stored on site, and it requires ongoing maintenance.

The trend these days is toward hosted PBX, also known as business VoIP or cloud-based telephony. With these systems, calls are made through the Internet via an offsite data center. A third-party VoIP provider handles all of the maintenance and support.

Get Free Office Phone System Quotes

  • Cost - Hosted PBX is less expensive to install and maintain. The system might cost anywhere from $3,000 to 15,000 to install in an office of 20 to 30, while traditional PBX could run $500 to $2,000 per user. Maintenance is the responsibility of the provider, not your in-house IT staff.
  • Installation - Hosted PBX systems are installed much faster and easier. In some cases, the systems are “plug and play,” meaning you can set them up yourself.
  • Ease of use - You get all of the same features and capabilities with hosted PBX, but the phone systems are more user-friendly and intuitive. Often, you can add users or enable a certain feature without IT support. Hosted PBX systems can also connect users across multiple locations as if they were in the same building. For example, calls can be routed or transferred to cell phones or home offices.

Find Local Phone System Dealers Who Will Compete for Your Business

Author: Ashley Smith


Need a Phone System Pro?

Answer a few short questions & get cost estimates for your needs from trusted companies in your area. Our service is 100% free!

Get Cost Estimates >>

Search Our Site

All Phone System FAQs

Serving USA Including:

  • Birmingham, Alabama
  • Anchorage, Alaska
  • Phoenix, Arizona
  • Little Rock, Arkansas
  • San Francisco, California
  • Oakland, California
  • Los Angeles, California
  • Fremont, California
  • Boulder, Colorado
  • Bridgeport, Connecticut
  • Stamford, Connecticut
  • Norwalk, Connecticut
  • Dover, Delaware
  • Naples, Florida
  • Marco Island, Florida
  • Savannah, Georgia
  • Honolulu, Hawaii
  • Boise City, Idaho
  • Chicago, Illinois
  • Joilet, Illinois
  • Naperville, Illinois
  • Indianapolis, Indiana
  • Carmel, Indiana
  • Des Moines, Iowa
  • Manhatten, Kansas
  • Louisvile, Kentucky
  • Jefferson County, Kentucky
  • New Orleans, Louisiana
  • Metairie, Louisiana
  • Kenner, Louisiana
  • Portland, Maine
  • Biddeford, Maine
  • Baltimore, Maryland
  • Towson, Maryland
  • Boston, Massachusetts
  • Cambridge, Massachusetts
  • Quincy, Massachusetts
  • Ann Arbor, Michigan
  • Minneapolis, Minnesota
  • St. Paul, Minnesota
  • Bloomington, Minnesota
  • Gulfport, Mississippi
  • Biloxi, Mississippi
  • St. Louis, Missouri
  • Billings, Montana
  • Omaha, Nebraska
  • Council Bluffs, Nebraska
  • Reno, Nevada
  • Sparks, Nevada
  • Manchester, New Hampshire
  • Nashua, New Hampshire
  • Trenton, New Jersey
  • Ewing, New Jersey
  • Santa Fe, New Mexico
  • New York, New York
  • Long Island, New York
  • Jacksonville, North Carolina
  • Fargo, North Dakota
  • Cleveland, Ohio
  • Elyria, Ohio
  • Mentor, Ohio
  • Tulsa, Oklahoma
  • Portland, Oregon
  • Vancouver, Oregon
  • Hillsboro, Oregon
  • Philadelphia, Pennsylvania
  • Camden, Pennsylvania
  • Wilmington, Pennsylvania
  • Providence, Rhode Island
  • New Bedford, Rhode Island
  • Fall Rivers, Rhode Island
  • Columbia, South Carolina
  • Sioux Falls, South Dakota
  • Nashville, Tennessee
  • Davidson, Tennessee
  • Murfreesboro, Tennessee
  • Franklin, Tennessee
  • Midland, Texas
  • Salt Lake City, Utah
  • Burlington, Vermont
  • Charlottesville, Virginia
  • Seattle, Washington
  • Tacoma, Washington
  • Bellevue, Washington
  • Charleston, West Virginia
  • Madison, Wisconsin
  • Casper, Wyoming