Everything You Need to Know About Hosted PBX and VoIP

Hosted PBX and VoIP are both powerful technologies that can spur rapid growth for your business. Find out how these systems differ and how they can work together to support your global growth ambitions.

Hosted PBX


Main differences between
Hosted PBX & VoIP


Hosted PBX



Hosted PBX solutions centralize telephony in the cloud, enhancing scalability, flexibility, and accessibility.

VoIP technology offers consistent voice quality and connectivity. VoIP systems also deliver stable and high-quality audio, ensuring clear communication for both internal and external interactions.


Hosted PBX reduces upfront costs, requiring only a subscription and compatible devices.

VoIP  can also be used entirely wirelessly, though, where you only pay for a subscription plan, a calling device, and a headset. International calling feels reduced or eliminated thanks to advanced features.


Hosted PBX offers advanced features like auto-attendants, voicemail-to-email, and seamless call routing for efficient communication.

VoIP comes with a variety of advanced features that make calling so much more convenient. For example, international numbers that help you to keep a local presence.

Good for

Small businesses seeking cost-effective, scalable communication solutions with a focus on simplicity and flexibility.

Small businesses with no need for complex features, companies making a lot of long distance calls.

Bad for

Enterprises with extensive budgets and specialized needs, firms with stringent security concerns, organizations requiring intricate feature sets.

Businesses with limited budgets for technology, companies working with sensitive information, businesses depending on impeccable call quality, enterprises in need of complex feature sets.

Difference between hosted PBX and VoIP

VoIP is a method for making phone calls through the Internet, while Hosted PBX is a cloud-based version of PBX hardware that enables businesses to route and switch calls.

Smaller businesses may opt for a simpler, VoIP-only setup, but most businesses would benefit from the global reach and stable connection offered by the combination of Hosted PBX and VoIP technology.

What is hosted PBX & How does it work?

PBX, or Private Branch Exchange, is a system that routes and switches calls between businesses and their telephone network. This function was originally the job of a switchboard operator, then it was handled by hardware. 

Cloud-based Hosted PBX systems are the most modern version of the technology. Using a hosted PBX system can help your business easily reach customers in every corner of the globe.

What is VoIP&How does it work?

VoIP, or Voice over Internet Protocol, is a technology that allows you to make calls over the Internet instead of traditional phone lines. It converts your voice into digital data and sends it over the internet to the person you’re calling.

VoIP software comes loaded with cutting-edge features and integrations, making it a powerful communication tool for growing businesses.


Expand business,
reach new levels



Premium features



Uptime SLA



Customer support



Countries available



Security and data monitoring

Let’s talk about
pros and cons

Hosted PBX

Enhance Internal Communication

Streamline internal communication with a PBX system, facilitating quick and efficient interactions among team members.

Cost-Efficient Call Routing

Optimize call routing within your organization, reducing costs associated with internal and external calls for enhanced budget management.

Centralized Voicemail Management

Enjoy centralized voicemail management with PBX, ensuring organized and efficient handling of messages for improved communication workflows.

Scalable Solution for Growth

PBX systems are highly scalable, adapting seamlessly to the evolving needs of your business as it grows, providing flexibility and expansion.

Dependency on Power Supply

PBX systems may be vulnerable during power outages, impacting communication continuity and requiring backup power solutions for reliability.

Initial Setup Complexity

Setting up a PBX system can be complex initially, requiring technical expertise, potentially leading to delays in implementation and operationalization.

Maintenance and Upgrade Costs

Ongoing maintenance and periodic upgrades of PBX systems may incur additional costs, impacting the overall budget for communication infrastructure.


Save Money on International Calling

Avoid expensive long-distance calling charges with features like International numbers and save both yours and customers’ money.

Embrace Freedom With a Remote-friendly Solution

Break down geographical barriers. VoIP lets you receive calls from anywhere with an internet connection. This possibility is invaluable for remote teams.

Adjust Your Calling Software As You Grow

VoIP adapts to your needs, no matter the size of your business. The highly scalable and adjustable software helps you grow seamlessly.

Optimize Workflows With Diverse Features

Get a diverse range of features for any business size and make team collaboration easier. Optimize workflow and maintain meaningful interactions with clients and partners.

You Need a Reliable Internet Connection

Just like cloud-based software, VoIP relies on a stable internet connection. You may experience delays, packet loss, and reduced call quality if your internet connection falters.

Location tracking May Be Limited

VoIP technology may fail to provide accurate location information to emergency services when a user dials 911. It can happen that VoIP doesn’t transmit accurate geographic data.

You Can Face Security Threats

Depending on the provider, VoIP can be vulnerable to security threats and cyberattacks like hacking, eavesdropping, and other malicious activities.


What Is a Hosted PBX System?

A Hosted PBX system is a private branch exchange (PBX) that is operated and maintained by a third-party service provider over the internet. It offers businesses advanced telephony features without the need for on-site hardware.

Is Hosted PBX the Same as Cloud PBX?

Hosted PBX and Cloud PBX are often used interchangeably, as both refer to a PBX system hosted off-site and delivered over the internet. Cloud PBX emphasizes the use of cloud technology for scalability and flexibility.

How does hosted PBX work?

Hosted PBX works by routing calls as well as other communication services over the internet. It connects calls between users and external phone lines through servers maintained by the service provider, thus eliminating the need for physical PBX hardware at the business location.

Who benefits from hosted PBX?

Hosted PBX is particularly beneficial for small to medium-sized businesses seeking cost-effective, scalable, and flexible telecommunication solutions, and for companies that require remote or mobile work capabilities without investing heavily in physical infrastructure.

Why choose a hosted PBX?

Hosted PBX, also known as cloud-based PBX, offers several advantages. It eliminates the need for physical hardware, reduces maintenance costs, and allows seamless scalability by letting you communicate with clients and prospects across the globe.

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.