Hosted PBX vs. Hardware PBX
Functionality
Specific differences between a hosted PBX service, like VirtualPBX, and a hardware or software PBX depend on the particular PBX equipment being compared. Virtual PBX offers a full-featured system with features and capabilities very similar to the most expensive hardware systems. There are some key differences, however, that arise from the basic way the systems work.
Premise-based equipment is usually employed inside an office or building. It is usually a single piece of hardware that has multiple incoming phone lines shared across a higher number of extensions. Calls are answered by the PBX equipment, and then routed to a specific phone through hardwired lines inside the office. Sending a call outside the office to someone telecommuting or working elsewhere is often impossible, and always results in additional costs. Maintaining PBX equipment requires knowledge of PBX and phone technology and someone to do the work. Click here for a full description of how standard PBX equipment works.
A hosted PBX service has a different set of advantages. A hosted system is maintained by the service provider, so there is no hardware or software for the client to pay for or support. Calls are routed from the hosted PBX to extension owners through the public telephone network. Each person that wants to receive calls has to have a working phone, so there is no sharing of phone lines between extensions. Calls can easily be routed to anyone, at any phone, in any location. Administration of the system is done simply, through a web-based interface, with little need for extra time or knowledge. Click here for a complete description of hosted PBX systems.
The following table summarizes some of the main differences between Virtual PBX's hosted PBX service and a typical premise-based system. Virtual PBX has the premier hosted PBX service available today, so not all things true of this service will be true for other hosted systems, but there are some clear differences:
| Virtual PBX | Standard PBX | |
| Up-Front Costs | Very Low | Very High |
| Support Costs | Low | Moderate |
| Costs Per Minute on Incoming Calls | Moderate | Low to Very Low |
| Share incoming phone lines | No | Yes |
| Route calls to any phone | Yes | No |
| Supports distributed employees | Yes | No |
| Scalability | Very High | Limited |
| Call capacity | Very High | Limited |
| Full feature set | Included | Expensive |
| Fault tolerant | Yes | No or Expensive |
| ACD queuing | Included | Expensive |
| Distributed administration | Yes | No |
A hosted PBX, like the VirtualPBX service, is clearly the better choice for companies with distributed employees and those that want to limit initial capital outlay. A hardware PBX makes more sense financially when employees are all in one location and the cost of incoming calls must be kept extremely low.