Hosted VoIP or Hosted PBX?

What is the difference? I hear these terms used interchangeably almost every day but are they the same? Let’s look at definitions.


What is VoIP?


VoIP stands for “Voice over Internet Protocol” and refers to sending communications across an IP-based network vs. the traditional proprietary voice network of yester-year. Starting in the early 2000’s, technology enabled voice traffic to run on these existing data networks eliminating the need for different cabling, separate protocols, proprietary equipment, etc.


What is PBX?

PBX stands for “private branch exchange.” In the old days, when the Bell System had a monopoly on telecommunications, the calls were “exchanged” by these large PBX systems sitting in non-discrete brick buildings. Later, as the capabilities moved on-premise, especially in large businesses, where 100’s of phones needed to be routed locally.


What about the term “hosted”?


This term, when thrown in front of either of these terms, means that customers are getting these services from the cloud vs. having their own on-premise. So, hosted VoIP vs. hosted PBX – the same or different? We will pick this up tomorrow.



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