A PBX, which stands for Private Branch Exchange, is a telephone system for businesses, allowing switching phone calls between different lines, both internal and external. The term originates from the old analog PBX systems, where operators had to switch lines and calls manually.

Why Should Every Enterprise Use the PBX System

And while there are no switchboard controllers around anymore, many companies still use traditional telecommunication systems. However, every year, more and more businesses decide to implement hosted IP PBX, a cloud-based system hosted outside the company’s premises.

Many refer to the system also as a Virtual or Cloud PBX. All because it uses the internet connection to run the operations. And what are the advantages of a hosted IP PBX system for SME? You’ll find the answer below.

Cost Efficiency

The most significant disadvantage of a traditional PBX system is that you have to pay for complex infrastructure, invest in training, maintenance, and other day-to-day expenses. Such costs can have a significant impact on every small or medium business operation.

A hosted PBX eliminates all of these costs. Since the third party runs it, you don’t have to pay for set up and maintenance. What’s more, it doesn’t require you to purchase any complex infrastructure because it uses an internet connection.

Thanks to that, Virtual PBX systems generate far fewer costs and worries, allowing you to focus on your day to day operation; all you need to pay for is services. The rest is out of your hands, saving you valuable time in addition to money.


In addition to lower costs, a hosted PBX system is easy to use. Setting up is also very quick, and usually takes up to a few days, allowing your business to run smoothly, without any major disruptions.

What’s more, since you don’t have to operate the whole system yourself, using it is much simpler. Virtual PBX software is also incredibly user-friendly, allowing every employee to get familiar with it in no time.


In today’s economic environment, businesses have to be mobile. The workforce can travel all around the world, and using hosted PBX is one of the best ways to support them during their trips efficiently.

With this system, you can easily transfer your desk phone calls to your smartphone, allowing you to stay in touch with the office wherever you are. It also means that your customers will reach you faster, increasing their contentment with your services.

But the flexibility doesn’t end there. PBX providers allow you to change your setting whenever you want. Thanks to that, you can smoothly adjust the system to your business’s needs.


Although according to the economic definition, the highest profit is every entrepreneur’s goal, you also want your business to grow. But if you want it to happen, you need a reliable system that will scale up or down in proportion to your requirements. A hosted PBX will help you achieve that.

The Cloud system allows you to add phone lines and extensions without any limitations. Thanks to that, you’ll quickly adjust your requirements, depending on your company’s current level.


Today’s world of business is full of potential threats. Cybercrimes, natural disasters, security breaches, or technical disruptions are extremely common and can cause chaos in your business’s operations.

Using a Virtual PBX system is one of the best ways to ensure that your company will run smoothly in the event of an emergency. All thanks to the fact that the whole equipment is located somewhere else. It ensures that in case of any physical catastrophe, your communication will be up and running.


Hosted PBX providers use various solutions to protect the system from any potential cyber threats. The company handles all security patches, firewalls, and software upgrades, ensuring that there won’t be any problems.

What’s more, reliable PBX providers are continually monitoring whether everything runs as it should. If they notice anything suspicious, they’ll contact you immediately, allowing you to take all the necessary steps.

The Bottom Line:

Although traditional PBX systems are still popular among larger companies, cloud-based solutions are far better suited for small and medium enterprises. They’re easier to set up, less expensive, and simpler to use.

What’s more, a hosted PBX is a fantastic solution if you want your company to grow in time, since it’s very flexible. You can easily adjust the number of lines, devices, and other aspects of the system, depending on your enterprise’s size.

Also, if your work includes a lot of traveling, a Virtual PBX will allow you to connect with your office and clients more effectively.

With so many benefits, it’s no surprise that more and more enterprises decide to use hosted IP PBX systems. If you’re thinking about implementing this solution in your company, this article should’ve made your decision much easier.