Is A Hosted PBX Suitable for my Business? A Helpful Checklist

What is a Hosted PBX?

History of Telephony

Things have come a long way since the invention of the telephone in 1876. The use of telephone systems has evolved radically and businesses in particular have been to the fore in driving innovations in telephony technology. From just one phone per office to multi-tonal systems, business telephony keeps improving allowing businesses to communicate more efficiently and cheaply. The peak of these advancements is the Hosted PBX system which is the focus of this article. Here are a few helpful definitions to get us started.

What is a PBX?

A PBX (Private Branch Exchange) is a traditional piece of equipment that allows a business to control how their phone system works.

A PBX has a number of features including:


  • Hunting: You can choose what to do with incoming calls, whether that means having all the phones ringing when a call comes in or just one phone after the other until the call is answered.
  • IVRs (Automated Attendant): Allows an office to set up an automatic greeting so calls can be put on hold or sent to the relevant department e.g “Press 1 for sales, Press 2 for customer service”.
  • Night Service: This feature allows a business to set time based rules so calls received out of hours are routed differently to calls received during the day. This means businesses can respond to calls during appropriate working hours and ensures the customer is greeted with an out of office message after hours.

What is a Hosted PBX?

A Hosted PBX is where the call platform and the PBX features are in the service provider’s data centre rather than in the business.

The difference between a standard PBX and a Hosted PBX is that traditionally a PBX system would have been purchased and set up somewhere in the office. A typical PBX is prone to the issues typically associated with any piece of physical equipment:

  • You have to keep up maintenance of the hardware.
  • The equipment deteriorates as time goes on.
  • There can be unexpected break downs.
  • There is a constant need to update or replace equipment to keep pace with ever evolving technology.


A Hosted PBX takes away all these issues while retaining all the benefits and functions provided by a standard PBX system.

Why Choose A Hosted PBX?

It is hosted in the Cloud.

Everyone is familiar with cloud computing even if not everyone is aware they are using it. Gmail and social media sites such as Instagram and Facebook are examples of everyday uses of the cloud along with web hosting services.

  • A Hosted PBX gives your business and your users a far more flexible and intuitive phone service. A Hosted PBX can be scaled up to increase with the demands of your business or scaled down. With a Hosted PBX, you only pay for what you need.
  • The lack of physical equipment and the installation and maintenance involved means more cost savings for your business while also freeing up office space.
  • A Hosted PBX allows businesses to make any changes they need from any location through a web based portal instead of needing to be physically present in the office.
  • Employees can connect to the system whether they are in the office, at home or even on the other side of the world using a smartphone app on their mobile phone.


Is A Hosted PBX Suitable For My Business? A Helpful Checklist

  • Does your business need to take or make a phone call – If yes, it is for you.
  • Does your business want to cut costs and free up office space – If yes, it is for you.
  • Do you want greater control and management over your phone system – If yes, it is for you.
  • Do you want a system that grows with your business without the need for large capital expense – If yes, it is for you.
  • Do you want your employees to be able to connect to the phone system wherever they are- If yes, it is for you.

Feel like getting more information? Start a free Web Chat on this site or check out Magnet’s Hosted PBX Offer from only €6 per person per month!

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