Hosted PBX is another term used to refer to virtual PBX. It is a new concept that is slowly gaining ground in many offices. To properly understand it, we must first define the general structure of a standard Private Branch Exchange (PBX). Simply understood, PBX is a telephone system that serves a particular office making it possible for their telephones to connect to one another under the control and supervision on an in-house operator. With the advent of the internet and VOIP technology, the original PBX system has been transformed into what is now known as hosted PBX. Under this system, the telephone system passes through the VOIP provider where it then connects to a much larger system (the host) and shares in its resources. Services such as call routing, voice mailing, faxing, automated greetings, conferencing calling and other features of the PBX is now enhanced with the video capability of the VOIP. Instead of the information sent in-house, it is routed to the host where it is processed and then sent back to the desired destination. In other words, it is a PBX system whose operator is somewhere else.

There are many advantages of shifting to the hosted PBX system. This arrangement generally brings the business owner a better deal as he does not have to spend for much hardware and the training of personnel. The high cost of purchasing the expensive hardware is also negated and there will never be a need to update it (hardware).

Currently, there are many hosted PBX providers each with their own set of advantages and disadvantages. Virtual PBX is one of the largest. Known for their quality service and reliability, it is definitely a solid choice. Their rates are comparable and their system offers a wide array of features. Another good provider is FreedomVOICE which offers solid basic services at an affordable cost. If you opt for their more complete listing of services however, they tend to get a little pricey. Another unique feature is that they are the only company which offers recording of all inbound calls. Onebox is next on the list of leading providers. This company is a tad bit more specialized. Its pricing is a little high but it provides large amount of minutes. Based on the structure of its packages, they are best used by offices with few employees that use up a lot of time. Finally we have Ringcentral. When compared to the previous providers, its support and service does not fair as well. Although it is not a bad provider in general, prospective customers should be very mindful of the fine print contained in their contracts in order to avoid any surprises when the time comes.

In the end, choosing the right provider really depends on the use and structure of your office. It is best to take several offers from different providers and take your time in comparing and scrutinizing them.