The bulk of the functionality on hosted and on-site PBX systems can be replicated, though it is inordinately more expensive to do so on an on-site option. Furthermore, the maintenance and service burdens of an on-site phone system fall on the company that uses it or will be charged at a premium by the telephone service provider. Additionally, the exposure to failure of an on-site system is pronounced whereas a hosted system is virtually unstoppable under any circumstances.
Some of the benefits of using a hosted PBX system include:
If you’re curious about how your hosted PBX system would work, take a look at this easy-to-follow graph.