Hosted PBX vs VoIP: What's the Difference and Which Do You Need?
VoIP is the technology that carries voice calls over the internet. A hosted PBX is the complete business phone system built on that technology: extensions, call routing, auto attendants, voicemail and transfers, all run for you by a provider in the cloud. Most businesses that search for "VoIP" are really looking for a hosted PBX.
VoIP and Hosted PBX in Plain Terms
The two terms get used as if they meant the same thing, but they describe different layers of a phone system.
VoIP (the technology)
Voice over IP turns a voice call into data and sends it over an internet connection instead of a traditional phone line. It is how the call travels.
Hosted PBX (the system)
A PBX is the system that gives a business its extensions, transfers, voicemail and phone menus. With a hosted PBX, the provider runs that system in the cloud and your calls use VoIP to reach it.
On-premise PBX (the equipment)
The PBX is a box at your office that you own, power and maintain. It can use VoIP too, but upgrades and repairs are on you.
Traditional phone lines
Calls travel over copper lines from a phone company. Adding a line often means a service call, and a lost line means no calls.
When Each Option Fits
Which one suits you depends on what you already own and how much of the phone system you want to manage.
Hosted PBX fits when
You want auto attendants, call queues and voicemail-to-email without owning hardware, and you want to add or remove extensions from a web portal as your team changes.
SIP trunking fits when
You already own a PBX and want to keep it, but you want to send calls over the internet instead of phone lines. You still maintain the PBX itself.
On-premise PBX fits when
You have staff to run it and a reason to keep the equipment in your building.
What "Hosted" Means for Maintenance
With a hosted PBX the servers, software updates and call routing platform are the provider's job. You manage your own users, greetings and call rules from a browser, and you reach support when something needs attention.
TX3 is built on a proven system, trusted by thousands of businesses. Support is available 24/7 by phone, email or live chat. Learn more on our hosted PBX page.
Where TX3 Fits
TX3 offers a hosted PBX with auto attendants, call queues and voicemail-to-email for every customer. Use Polycom, Yealink or Cisco SIP phones that you buy from TX3 or bring yourself, or use the mobile and desktop apps on the same extension.
Pricing is a monthly platform fee by plan plus a flat $0.03 per minute. See the pricing page for what each plan includes, the cost comparison for what 20 extensions cost, or contact us for a quote.
Frequently Asked Questions
Is hosted PBX the same as VoIP?
No. VoIP is the technology that carries calls over the internet. A hosted PBX is the full business phone system that uses VoIP and is run for you in the cloud.
Do I need an internet connection for a hosted PBX?
Yes, calls travel over your internet connection. If your office loses internet or power, TX3 can forward your numbers to cell phones so calls still get through.
What is the difference between a hosted PBX and SIP trunking?
SIP trunking connects a PBX you own to the internet for calls. A hosted PBX replaces the PBX itself with a cloud-based system run by the provider.
Do I need new phones?
Not necessarily. TX3 supports Polycom, Yealink and Cisco SIP phones. You can buy phones from TX3 or bring your own compatible SIP phones, and you can also use the mobile and desktop apps.
Can I keep my existing phone numbers?
Yes. TX3 handles number porting for local and toll-free numbers. Keep your current service active until your port date is confirmed.
Ready to see a hosted PBX built around your team?
Tell us how many extensions you need and how your team works, and we will put together a plan. Or call Sales at (888) 438-9375.