A hosted PBX, or private branch exchange, is a telephonic switching system that allows a firm to manage several telephone lines and pay one bill rather than making payments on each line individually through a telephone company. If you are a company that requires multiple phone lines, a hosted PBX can be a huge cost benefit savings in both the short term and long term.

The cost of replacing your company's existing multiple telephone lines with a hosted PBX may not be initially apparent. The initial cost to remove the existing system and then purchase the hosted PBX can require a huge upfront cash outlay. However:

1. A hosted PBX provider can decrease telephone costs by allowing the company to pay for the exact number of telephone lines connected

2. A hosted PBX system reduces the standard monthly fees that regular phone companies charge of add-on features such as call forwarding and voice mail, by allowing you to purchase these separately ad a reduced rate.

3. A hosted PBX allows your firm to determine which telephone numbers can be used in order to prevent unwanted calls to foreign places and costly 800 numbers.

Action Steps
The best contacts and resources to help you get it done

Ensure that hosted PBX information can help you

Finding good hosted PBX information to help you decide on the best deal can be tricky with so much information on the Internet. To avoid getting caught up in paying for an expensive PBS system that may not meet your standards, a trial open source VoIP system can be effective solution or a simple low-cost model would suffice.

I recommend: Asterisk is the world's leading provider of open source PBX telephony that lets download a trial version prior to purchase. If you have a small business and need a simple and inexpensive solution, the Packet8 is for you. Packet provides numerous feature-rich add-on's and at the same time allows for a virtual functionality.

Find hosted PBX systems that offer numerous options

If you have a medium-sized business, you might want to consider a virtual PBX system for one low monthly fee and no contracts. By doing so, you can control the number of add-on features to your system, while still being able to have an efficiently run business.

I recommend: Onebox offers a virtual PBX system for one low monthly fee. FreedomIQ is another good company that allows you to purchase add-on features for one low monthly proice with little hassle.

Develop a hosted PBX list of providers for large companies

If you have a large business and at least fifty telephone lines, you may want to consider a stable company that offers PBX systems. A larger, more stable hosted PBX provider can offer many options for your company at a significantly reduced savings if you have many phone lines.

I recommend: Microsoft is still one of the leaders in the PBX industry and can offer many options that will fit your business needs. If you prefer to have a custom built hosted PBX system, then Business Phones Direct is the only company that offers this service.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  If you are seeking additional cost savings, be sure to speak to the hosted PBX provider about discounts if you eliminating your old telephone system. Many hosted PBX providers are willing to work with you to reduce costs through discounts, especially if you over 100 telephone lines that can be switched to a hosted PBX system. The hosted PBX provider will also be able to help you remove the old telephone lines so that you are not stuck with the remnants of the old telephone system plus the hosted PBX system.