Hosted PBX vs Traditional PBX: Why Smart Businesses Are Switching

Andrewlope14 Aug, 2025Business

Traditional PBX is also known as on-premise PBX or analogue PBX, and it works with the help of physical hardware like copper telephone wires, on-site hardware and a dedicated IT team. Hosted PBX employs IP (Internet Protocol) for communication, and the calls are delivered over the IP network rather than the physical lines. The voice traffic is transported over the PSTN with the help of a VoIP phone system or a combination of both. Hosted PBX has very low upfront expenditures related to hardware, licensing and setup.