VoIP PBX System FAQs


Also known as an IP-PBX system, a VoIP PBX functions similarly to traditional PBX systems, save for one fundamental difference: VoIP PBX phone calls are made through the Internet rather than circuit-switched networks.


Q: Is VoIP PBX and hosted PBX the same thing?

A: Not necessarily, since it depends on who is leveraging the services and who owns the equipment. For example, companies have the opportunity to purchase their own VoIP PBX equipment and keep it on site for internal use. When that’s the case, the communications system would not be considered a hosted PBX system since the PBX equipment is on-premise.

If that company were to outsource their communications system to a hosting provider, however, they would then be leveraging a hosted PBX system since the IP-PBX equipment is owned and operated by the host in their own data centers.

Either way, many features and functions provided by the PBX equipment can still be accessed anywhere a user has an Internet connection, regardless of who owns the equipment or where the user might be. A user’s proximity to the physical equipment has nothing to do with whether phone system is hosted or not.


Q: Why use a VoIP PBX system?

A: There are a variety of benefits to using VoIP rather than traditional communication methods. Perhaps the simplest answer is that a VoIP PBX system uses up-to-date communications technology and can offer many more features than a traditional PBX system does. Since packets of data are sent over the Internet, a VoIP PBX system can support not just voice communications, but text and video communications as well.

For businesses, these advanced features open the door to a multitude of new, more productive work efforts that would otherwise require several different vendors to support.


Q: Is VoIP expensive?

A: No. Depending on the needs and size of the enterprise, several cost-effective VoIP PBX solutions exist. For example, an on-premise IP-PBX solution might be extremely affordable for larger companies despite the costs of equipment and ongoing maintenance. After these costs have been addressed, an on-premise VoIP PBX would get more cost-effective over time.

A smaller company, on the other hand, might only need a few services for her employees, so a hosted VoIP option would be a better fit. Paying only a low, fixed amount per month, companies leveraging a hosted PBX system don’t need to worry about buying new equipment, upgrading their service, or maintaining the equipment. This keeps costs at a minimum and allows for predictable IT budgeting.


For both on-premise or hosted solutions, find your new VoIP PBX here!