The most cost effective VoIP solution for SMB’s can often be a Hosted VoIP, Hosted PBX solution – especially when existing IP PBX (on premise) is end of life and a new IP PBX is on the table. In the early days of telecom, switch boards made use of corded circuits. These types of switchboards can be seen in period pieces about the 1950’s and 1960’s where operators manually transfer calls to the appropriate destination. Private branch exchanges were already in use for large organizations. Hosted PBX systems reduce costs by managing the PBX system from a singular location. This means that a hosted PBX provider hosts (or manages) the PBX system for you rather than having to install and manage a wholly separate system. Hosted PBX systems can be integrated with existing phone systems, or can replace them altogether. More interestingly, they offer a competitive advantage over traditional automated PBX systems because they can be used with any device that has access to the internet, including cell phones, tablets, laptops, and desktop computers. Incoming calls into an organization’s PBX system are managed over the cloud by the provider’s server, and assigned IP addresses to reach the correct destination.
VoIP (voice over IP) is an IP telephony term for a set of facilities used to manage the delivery of voice information over the Internet. VoIP involves sending voice information in digital form in discrete packets rather than by using the traditional circuit-committed protocols of the public switched telephone network (PSTN). A major advantage of VoIP and Internet telephony is that it avoids the tolls charged by ordinary telephone service.