Hosted PBX

A business phone system that runs in the cloud instead of a box in your office.

What Is a Hosted PBX?

A PBX, or private branch exchange, is the system that runs a business’s phone lines. It routes calls to extensions, runs the auto attendant and handles voicemail. A hosted PBX does all of that from a provider’s data center instead of hardware in your office. Your phones connect to it over the internet, which is why it’s also called a cloud phone system or cloud PBX.

How a Hosted PBX Works

  1. Desk phones, computers and mobile phones connect over your internet connection.
  2. Calls travel as VoIP to the provider’s hosted system.
  3. The system routes each call based on your rules: an extension, a hunt group, the auto attendant or a cell phone.
  4. Changes like adding a user or recording a new greeting happen in an online portal, not with a technician on site.

Common Hosted PBX Features

  • Auto attendant (“Press 1 for sales”)
  • Hunt groups that ring several phones at once or in order
  • Voicemail to email, with transcription
  • Call forwarding and simultaneous ring to mobile phones
  • Call recording
  • Conference bridge
  • Music or messages on hold

Hosted PBX vs On-Premise PBX

Feature Hosted PBX On-premise PBX
Where it lives The provider’s data center Your office
Upfront cost Low, mostly phones High, for hardware and installation
Maintenance Handled by the provider Your team or a contractor
Adding users Online, in minutes Often needs hardware or a technician
Remote work Works anywhere with internet Limited without extra equipment

Who a Hosted PBX Is For

Businesses replacing an aging phone system, companies with more than one location that want a single system, and teams with remote or hybrid staff who need their business number wherever they work.

ALLO Business Cloud Voice

Cloud Voice from ALLO Business Voice is a hosted PBX, with Premium Auto Attendant, multiline hunt groups, shared group voicemail and voicemail transcription.

Retire the phone closet.

FAQs

Private branch exchange. It's the system that manages a business's internal extensions and outside phone lines.

Not quite. VoIP is the technology that carries calls over the internet. A hosted PBX is a complete business phone system that uses VoIP.

Usually, yes. Existing numbers can be ported to a hosted PBX, and your provider manages the transfer.

Calls can automatically forward to cell phones or another location, so customers still reach you. A backup internet connection adds another layer of protection.

Reputable providers encrypt calls, secure their data centers and monitor for fraud. Keeping your own network secure, with a firewall and strong passwords, matters too.