What Is PBX? A Simple Guide for Business

PBX stands for Private Branch Exchange. It's a phone system that lets your business manage internal and external calls.

What Does a PBX Do?

A PBX routes calls between extensions, connects to the outside phone network, and provides features like voicemail, hold music, and call queues. Traditionally it was hardware in your office; today it's often hosted in the cloud.

Hosted PBX vs On-Premise

Hosted PBX (cloud): The system runs in your provider's data centre. You use phones and softphones to connect. No hardware to maintain.

On-premise PBX: The equipment sits in your office. You own and maintain it. More control but higher upfront cost.

Why Businesses Use PBX

PBX systems give you professional features (auto attendant, hunt groups, call recording) and let you present one main number to customers while using multiple lines and extensions.