Hosted PBX Comparison to Traditional PBX


A Hosted PBX system has many advantages over a traditional premise-based PBX system; the days of costly on-premise PBX systems are over. Our customers enjoy the benefits of a hosted PBX system, which lowers their costs, makes them more efficient and gives them more flexibility. Powerful telephone features used to be reserved only for those companies that could afford traditional PBX systems, but now businesses of all sizes can enjoy these same benefits without a large investment in hardware.

Major Differences

There are many major differences between a hosted PBX system and the traditional on-premise PBX system found in many offices. As part of our Hosted PBX comparison we’ll start by summarizing these differences, and then providing in-depth examples of each.

  • Lower up-front investment– Traditional PBXsystems are costly to purchase and install and often require the knowledge of an experienced installer to setup and configure. In comparison, a hosted PBX system does not require a large up front investment as there is no PBX system to purchase.
  • Wiring– A hosted PBX does not require telephone wiring. Instead you can use the existing cat5 wiring present in your office or home that your computer uses to connect your hosted PBX telephone or soft phone.
  • Flexibility– A hosted PBX system lets you easily upgrade, change features and expand your service without the need for a technician, additional wiring or up grades to your PBX hardware. In fact, with a hosted PBX system you can work from anywhere at anytime which isn’t possible with most traditional PBX systems.
  • Redundancy– Traditional PBX systems can fail and don’t have any redundancy. In the event of a hardware failure you could be without a PBX system for days while you get your PBX system repaired or replaced. Hosted PBX services can offer greater redundancy than a traditional solution.
  • Work from anywhere– With a hosted PBX solution your employees will enjoy being able to work from anywhere. Employees can use their cell phones, soft phones on their laptops while they travel or even install an IP telephone at their homes to reduce commuting.
  • Technical support– With a hosted PBX solution technical support is provided by Easy Office Phone rather having to rely on an outside technician or installer to provide maintenance or train staff on how to use the system.
  • Easy expansion– Expansion of your service to new offices is as easy as installing telephones or using your laptop. With traditional PBX systems you would need to install additional hardware at each location.

Specific Examples

Lower up-front investment

A Hosted PBX is driven by technology that the provider “hosts” on its own premises. It does not require an onsite PBX, which can cost many thousands of dollars, as a traditional system does. With a hosted PBX, the customer only needs to purchase phones. This does represent an upfront cost, but a) the cost is significantly lower than having to purchase phones in addition to a full onsite PBX system, and b) business VoIP services such as Easy Office Phone’s provide a wide range of hardware and software options that can help reduce or even eliminate initial costs.

For example, a customer could use a free soft phone such as X-Lite or Zoiper to manage calls, meaning no upfront hardware investment whatsoever. In the case of a business that has existing analog phones and wishes to keep them, Easy Office Phone can provide analog-to-VoIP adapters that allow the existing phones to interface with our hosted PBX service. Adapters are quite cost-effective and can drastically reduce up-front outlay.

Wiring requirements

Unlike traditional analog PBX systems, a hosted PBX does not require landline telephone wiring. Ethernet (sometimes called Cat5) cable from a router to each phone is the only requirement, and running these cables is generally far simpler and quicker than installing landline wires. It’s generally not necessary to hire a technician to run these cables, meaning a further savings in terms of labour costs.

For office environments in which power outlets are scarce or difficult to reach, power-over-Ethernet may present a good solution. This technology uses a network switch to deliver power to your business VoIP phones through Ethernet cables, eliminating the need for an AC adapter connected to each phone, and representing a further potential cost savings.


Because a Hosted PBX service is virtual in nature, its structure is highly flexible and customizable. With a traditional PBX, once the system has been installed, it will remain as initially configured unless a technician physically intervenes and re-wires or expands the system – which of course represents an often significant labour cost.

By comparison, Easy Office Phone’s service allows for quick, simple, and no-cost changes to your service. You can log on to your account through a user-friendly web interface and make many common changes yourself, without ever involving a technician. If your business is growing and you wish to add capacity to accommodate more employees, simply advise your representative who can add more Users or Channels very quickly. There is no installation or setup fee to change your level of capacity; your monthly service will simply change accordingly.


Traditional PBX systems are entirely dependent on the central PBX “box” installed at a company’s office. All of the routing logic is handled by this centralized device, and if the hardware fails, that company’s PBX will no longer be functional. Such devices are often extremely complex in terms of wiring and troubleshooting by anyone other than a trained professional is inadvisable at best, and imposssible at worst. In most cases a company that experiences a hardware failure on its traditional PBX will have to hire a technician to perform emergency service, which can be prohibitively expensive.

Work From Anywhere

Hosted PBX services, unlike traditional systems, are not tied to customer’s physical company location and thus the company’s employees are able to work from virtually anywhere. Business VoIP phonetechnology allow employees to simply connect a phone device to a high-speed Internet connection and be ready within minutes to make and receive calls just as if they were in their main office. The reason for this is that the phone is pre-programmed to “find” Easy Office Phone’s servers through the Internet, and therefore it does not matter where the phone is physically located.

For even greater mobility, some customers choose to use a Soft Phonewhen they travel. A soft phone is simply a piece of software that runs on a computer and provides essentially the same functionality as a desk phone. Because the software can be installed on a laptop or notebook computer, which many employees already carry with them when travelling, it provides a very convenient mobility solution.

Finally, some users may prefer to work from cell phones, and a Hosted PBX is able to accommodate them as well. For incoming calls, the calls can be easily routed to cell phones using a web-based extension management tool. Even outgoing calls from cell phones can be integrated into a hosted PBX, using a Virtual Calling Cardwhich allows a cell phone user to dial out through the hosted service. This technique has the advantage of avoiding expensive long-distance cell phone charges and also of presenting the company’s outgoing caller ID, rather than that of the cell phone itself.

Technical Support

Easy Office Phone’s Hosted PBX service is backed by a complete Technical Support department, reachable through a variety of means. Support staff are able to help customers remotely and rarely if ever need to schedule an on-site service call, representing significant cost savings on labour as compared to a traditional PBX solution. Technical support is available via phone, Live Chat, or via a 24-hour ticketing system, meaning that support for a Hosted PBX is much more readily available and responsive than for a traditional alternative.

Easy Expansion

With a traditional PBX, any changes typically require an on-site service call from a technician. It’s often necessary to install new hardware and perform complicated rewiring, which can be time-consuming and disruptive to an office environment,i n addition to being potentially very expensive. The requirement for a physical visit means that customers are dependent on the availability of a trained technician, who may be very busy and unable to respond quickly.

When using a Hosted PBX service, by comparison, changes can be simply and quickly accommodated. The virtual nature of the service means that Easy Office Phone staff can complete most changes remotely. When hardware does need to be installed or changed, the /spanfont-size: 1Lato0pt;customer is usually able to do so themselves due to the Plug-and-Play nature of Business VoIP phones. The end result is that companies using a Hosted PBX are able to expand or change their service in a quick, cost-effective and simple manner.

We hope you have found our Hosted PBX Comparison helpful. We invite you to continue browsing our website content.


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