PBX System
The traditional and IP are hosted and maintained inside the office premises. These are called on-site PABX systems. The hosted PBX is offsite or cloud. It is maintained by an external company that you will pay for the services. Hosted PBX makes use of voice over internet protocol or VoIP.
The traditional PBX makes use of analog wires or PRI copper circuits. A traditional PABX is the most reliable system that allows the communication to be conducted on the dedicated lines with top voice quality. Adding an additional connection to traditional PBX is pretty difficult as it involves physical wiring. So traditional PABX is suitable for small offices that have wirings already in place. If you have all the equipment in place then it is a less expensive solution.
The traditional PABX equipment has its own cost as all the maintenance is provided on-premise. If the business does not have a resource to troubleshoot the PABX system, it will cost additional charges if you hire an independent contractor to troubleshoot your system.
Hosted PABX is an IP PABX system that is provided by an external offsite VoIP company. Since an off-site company is hosting your PABX system, monthly fees need to be paid. The two ways how monthly fees can benefit a small business: hosted PABX provides unlimited free calls even to certain locations across the globe. Unlike the on-premise IP PABX system, a hosted PABX system does not need initial investment on software installation or equipment, but you need to purchase your handsets. The best-recommended way to choose hosted PBX is to choose the provider who is also offering a data connection.