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How do Hosted Phone Systems Differ from PBX and Centrex?

Since an efficient phone system enables businesses to handle their communication needs easily, business phone systems play an important role in business growth. Phone systems act as a link between businesses and their customers and employees within the same organization, allowing for seamless communication.

Since an efficient phone system enables businesses to handle their communication needs easily, business phone systems play an important role in business growth. Phone systems act as a link between businesses and their customers and employees within the same organization, allowing for seamless communication.

Investing in a dependable VOIP phone system allows your company to stay ahead of the competition by increasing overall productivity, customer accessibility, and future expansion of the phone systems is relatively simple as business needs evolve.

Let's look at the differences between PBX and Centrex hosted phone systems now that we understand the importance of a reliable phone system.

PBX System


A Private Branch Exchange system is a type of business telephone system that provides additional features such as employee extensions and auto attendants that answer and route calls to the appropriate agents or departments. There are many different types of PBX systems available, with hosted phone systems being a popular choice among businesses.

The Advantages

Centralized Control


What is Hosted PBX? A PBX system includes a receptionist feature that allows you to access all incoming calls to your company's various phones through a single number. That means you can list a single phone number as your business phone number, and your employees will be able to make and receive calls while other callers remain connected.



PBX phone systems do away with the need for a human receptionist to answer the phone. The auto-attendant, which acts as a virtual receptionist and routes calls to the appropriate agent or department based on the caller's selection on the menu option, is one of the most popular PBX features. Customers can also enter an extension number directly to bypass the menu process and have their calls directed to the appropriate agent, saving time and improving the customer experience.

Cost Monitoring


Businesses can view their call logs, which keep track of all incoming and outgoing calls, which was previously impossible to do with a traditional phone until the incredibly high phone bill arrived. You can see which departments receive the most calls, which extensions are receiving the most calls, and more with a PBX system.

Usage reports can help you adjust phone allocation to get the best return on your handset investment and see if employees are making personal calls.

Hosted Phone System

A hosted PBX system, also known as a cloud-based or virtual phone system, offers all of the features, applications, and calling services of a traditional PBX system in the cloud. A hosted phone system bills you monthly for the application, features, and phone services, with your service provider handling any ongoing software updates and PBX maintenance. Users of hosted PBX systems can also download VoIP phone apps to their preferred devices, allowing them to work on the go.

The Advantages

Improves Efficiency and Productivity 


Thanks to a hosted PBX system, your employees now have the tools they need to work faster and more efficiently. Employees are able to work from anywhere with full access to the system via their devices because it is a cloud-based phone system.

Conferencing, screen sharing, and business SMS, for example, keep your employees in constant contact, allowing for effective team collaboration no matter where they are.

Customer relationship management (CRM) integration puts customer and supplier data at employees' fingertips, allowing them to view all data in the system on a single platform without switching between different applications and tools.

Plug and Play System


Change frequently results in downtime and lost productivity as employees learn the ins and outs of new technology. Plug and play functionality in a hosted PBX system allows your business to be up and running quickly and with minimal downtime. Training is simple and quick, thanks to an intuitive and easy-to-use interface.



Businesses prefer a hosted PBX system because it requires no installation and eliminates the need to purchase hardware, which is typically a costly capital expenditure for most businesses. A hosted PBX system simply makes more sense when your service provider manages the maintenance, advanced features, and predictable subscription pricing.

Most cloud-based providers provide mix-and-match options, allowing you to pay only for the services you use and add and remove them as needed.

Centrex System

Centrex is a type of telephone exchange that performs similar functions to a PBX system but is equipped with equipment owned by and located on the premises of the telephone company.

The Advantages

Cheaper than PBX systems


Small and medium-sized businesses typically use Centrex because it is less expensive than a PBX system. Since the hardware is housed at the phone company, you won't have to invest in any, making it an excellent (and sometimes the only) option for businesses on a tight budget.

There are no capital costs associated with maintenance, technical training, ITIL certification or software upgrades.



Centrex can easily accommodate the maximum number of extensions without having to replace or upgrade PBX hardware. Intercom dialing (among different users in the same company) is free.

Pay as You Go Model


Centrex is a pay-as-you-go model that allows businesses to get many PBX features and functionality for a low, upfront cost.

With effective phone systems, businesses can stay connected and accessible to their customers. Customer service relies heavily on communication, so a good phone system is the best investment any company can make.

TryFree PBX, the one-stop solution for all your telephony needs if you're looking for a dependable cloud-based phone system. Aavaz PBX can customize the perfect contact center solution for your business now, tomorrow, and in the future, regardless of its size or needs.

1 comment

  1. Nice post. Thanks for sharing blog on PBX system. You may also consider Aavaz'sfree PBX system also.