Hosted PBX vs SIP Trunking: Which One Is Better?
Your communication system can impact performance and costs. Is SIP Trunking or Hosted PBX the better choice? Here’s what sets them apart.
Differences Between SIP Trunking vs Hosted PBX
| Parameter | Hosted PBX | SIP Trunking |
|---|---|---|
| Infrastructure | Only needs internet and routers. | Requires SIP-enabled PBX or VoIP gateway. |
| Maintenance | Provider handles maintenance, minimal IT expertise required. | The business maintains equipment and requires in-house IT staff. |
| Costs | Lower upfront costs due to ongoing monthly subscriptions. | Higher initial costs, often priced per channel or minute. |
| Scalability | Easily scalable, users can be added or removed through the app. | Limited scalability requires changes to PBX infrastructure for expansion. |
| Features | Comes with built-in features, easy to add new ones. | Dependent on your local PBX; may require custom development or upgrades. |
| Reliability | Relies on the provider's infrastructure and internet connection. | Depends on both the on-premise equipment and the Internet connection. |
| Flexibility | More flexible, you only need an internet connection and the app. | Less flexible, may require additional setup for multi-location support. |
| Best suited for | SMBs, remote workers, or multiple locations. | Larger enterprises with existing PBX. |
What is Hosted PBX?
Hosted PBX (Private Branch Exchange in the Cloud) is a cloud-based phone system that works over the Internet without the need to install complex equipment in the office.
Calls are made using VoIP (Voice over Internet Protocol) technology, meaning they use the Internet instead of traditional phone lines. The provider handles all maintenance and updates, so your business only needs a stable internet connection and the software installed on your devices to get started.
Who Should Consider Hosted PBX?
Hosted PBX systems benefit many types of businesses, especially:
Small, medium, and large businesses looking for a cost-effective phone system: Hosted PBX eliminates the need for expensive on-premise hardware and maintenance, so it’s a great option for businesses that want to cut costs.
Companies with remote or distributed workforces: It lets employees work from anywhere, as they only need a stable internet connection.
Growing businesses that need scalability: Hosted PBX is easy to scale up or down with just a few clicks, without infrastructure changes.
What is SIP Trunking?
SIP trunking is a technology that lets you make calls over the internet using VoIP. The main difference with hosted PBX is that SIP trunking requires an on-site physical PBX system. SIP trunking acts as a virtual bridge that connects that existing PBX system to the internet, allowing it to use VoIP to make and receive calls.
Who Should Consider SIP Trunking?
SIP trunking can benefit many types of businesses, but it's particularly well-suited for:
Larger companies transitioning from legacy systems: Businesses moving away from traditional PBX systems can use SIP trunking to modernize their communications infrastructure.
Organizations preparing for the future: As some countries plan to phase out traditional phone lines (PSTN), adopting SIP trunking helps companies stay ahead of these technological changes.
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Pros and Cons of Hosted PBX and VoIP
Features
Discover 4 most popular
Hosted PBX features
Voicemail
Maintain a personalized customer experience outside of business hours or when your team is busy.
Read more about Voicemail
Call Recording
Automatically record and access your agents' calls directly from your browser.
Read more about Call Recording
IVR
Streamline your callers' journey with a multi-level IVR menu and lead them where they need to be.
Read more about IVR
Analytics
Get a 360° view of everything happening within your team and control its performance.
Read more about AnalyticsWhat real users are saying
The inside scoop from actual CloudTalk customers.
From 20-Minute Waits to 3-Minute Service
“With CloudTalk, we dropped our missed calls from 80% to 16% and cut wait times by over 85%, while scaling from 2 to 20+ agents.”
40% Lift in Call Connections
“With CloudTalk, our pre-sales team stopped wasting time on dropped calls and started having more of the right ones.”
20% More Efficient Call Handling
“We replaced personal phones and manual processes with a scalable VoIP solution and saw a 20% jump in team productivity.”
40% Fewer Missed Calls
“We replaced personal phones and manual processes with a scalable VoIP solution and saw a 20% jump in team productivity.”
From 3 Phone Systems to One Source of Truth
“Before CloudTalk, our data was scattered. Now, everything lives in HubSpot — connected, visible, and fully unified.”
66% More Capacity Without Hiring
“CloudTalk made it easy to scale support fast: we cut handle time by 33% and now handle 66% more calls per agent.”
CloudTalk is a data-driven solution for exceptional customer experience and intelligence is a key part of it.
Schedule a demo today and find out for yourself.
Frequently asked questions
An SIP channel is like a virtual phone line that lets you make and receive calls over the Internet instead of traditional phone lines. Each channel handles one call at a time, and you can have multiple channels for more simultaneous calls. It's part of how VoIP phone systems work.
SIP trunking connects your existing phone system to the internet, requiring on-site equipment and IT staff. Hosted PBX is a fully online phone system managed by a provider with no need for hardware. VoIP is the general technology for making calls over the internet, used in both SIP trunking and Hosted PBX.
SIP forking allows multiple devices to receive the same incoming call simultaneously. When a call is made to a single SIP address, it can ring on multiple devices like a desk phone, mobile, or softphone at the same time. The call is connected to the first device that answers. This feature is useful for increasing availability across devices.
The bandwidth needed for a hosted PBX depends on the number of concurrent calls and the quality of the calls. Typically, each VoIP call requires 80-100 kbps of bandwidth for high-quality audio. For example, 10 simultaneous calls would need around 1-1.25 Mbps of upload and download bandwidth.
SIP (Session Initiation Protocol) on a server is responsible for managing and controlling VoIP calls and multimedia sessions. It handles tasks like setting up, maintaining, and ending voice and video calls over the internet. It routes these calls between users, devices, or networks, ensuring proper communication and connection management. It's a key component in VoIP and other real-time communication systems.
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