A PBX is a type of phone network that helps businesses manage calls within their network and calls to outside users. This includes routing calls between office extensions as well as routing incoming and outgoing calls. Any office with multiple extensions (and therefore, users) will need a good PBX system to function properly. If you already have a legacy PBX system, then you know how costly a PBX can be. The machinery for a legacy PBX can run upwards of $10,000 depending on your business size. And when you add in costs for repairs, installation, manual operation, and storage, you could easily add another $24,000 or much more to that bill.

Today, you can choose from a variety of IP PBXs to improve your business phone system. Many business VoIP providers include the cost of a basic hosted PBX in your bill for a basic business VoIP plan.

Nowadays, Hosted PBXs and Virtual PBXs are becoming more popular, especially for small or medium-sized businesses that want to save money on their monthly phone bill. Hosted PBXs are full PBX systems that are managed by your VoIP service provider at their data center, keeping you free of any incurred costs for equipment or constant maintenance. A Virtual PBX is a full PBX system hosted by cloud technology over the Internet. Both of these PBX solutions are extremely affordable, and work just as well as legacy PBXs...for half the cost! Choosing a Hosted PBX or Virtual PBX also helps you save on resources and space! Not to mention that it is much easier (and cheaper!) to let your provider make upgrades and perform maintenance on your PBX as opposed to hiring a technician.

If you feel more comfortable with an actual machine PBX, you can use an IP PBX (digital PBX) software or hardware system that supports VoIP calling. Do keep in mind, however, that these systems can be more costly than hosted or virtual systems (but are still cheaper than the antiquated legacy PBX systems).