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What are the advantages and disadvantages of a Hosted PBX?

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What are the advantages and disadvantages of a Hosted PBX?

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The advantages of a hosted PBX are the lower upfront costs, usually associated with less hardware costs. The usual hardware need would be IP phones which would connect to the Internet through a router. The provider maintains the software and servers and should provide technical support. By connecting to the “PBX server” through the Internet a user is dependant upon their connections stability, as well as the quality of that connection. As many Hosted PBX companies are smaller, relatively younger companies and the technology new, some issues can occur which can affect the stability of the service. In addition, the contract may have “back end” costs, such as cancellations fess which would increase the overall cost of the service.

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