A PBX (Private Branch Exchange) is a business telephone system that manages internal and external calls for an organisation. It handles call routing, extensions, voicemail, call transfer, and other telephony features.
Types of PBX systems:
- Traditional PBX – physical hardware installed on your premises, connected to PSTN/ISDN lines. Being phased out with the PSTN switch-off
- IP PBX – on-premise hardware that uses VoIP (internet) for calls instead of traditional lines
- Hosted PBX (Cloud PBX) – the PBX runs in the cloud, managed by your provider. No hardware on your premises beyond IP phones
Hosted PBX vs on-premise PBX comparison:
- Capital expenditure – Hosted: none. On-premise: £2,000–20,000+ depending on size
- Monthly cost – Hosted: £8–20 per user. On-premise: maintenance contracts + line rental + call charges
- IT resource required – Hosted: none. On-premise: specialist knowledge or outsourced support
- Remote working – Hosted: native support. On-premise: requires VPN and additional configuration
- Disaster recovery – Hosted: built-in. On-premise: your responsibility
- Lifespan – Hosted: always current. On-premise: hardware typically needs replacing every 7–10 years
For the vast majority of UK businesses, hosted PBX offers the best combination of features, flexibility, and value. Compare hosted PBX packages with Connection Technologies.