A Brief Explanation Of PBX (Private Branch Exchange)

The demands on voice platforms by today’s business community are hefty, they include greater flexibility in order to grow with the large pools of customer data streaming in and out of contact centres and the ability to use this data to both improve customer experience and predict customer behaviour. Existing systems, like PBX, have alot of growing to do.

On-Premise PBX vs Cloud PBX vs Hosted PBX

Originally, PBX (Private Branch Exchange) was created as a telephone switching system handling multiple phones and calls coming into an enterprise, eventually, it evolved to an IP-PBX which uses a wide or local area data network to manage calls coming over both the internet and circuit telephony.

Now, PBX falls under several categories; traditional, on-premise PBX, cloud PBX and Hosted PBX.


Hosted PBX is cloud-based, usually managed by a third-party PBX provider who maintains and updates the system.


On-premise PBX is hardware managed on the company site and can integrate with its CRM system (customer relationship management). Its perfect for bigger enterprises that can handle the amount of infrastructure and bandwidth required.


Cloud PBX is still a fairly new concept, while a hosted PBX uses a physical off-site server managed by a third party provider, cloud PBX has no such thing. It uses the cloud to store data and is a scalable system.

The Future of PBX

With businesses more focused on digital transformation and omnichannel strategies, the future of PBX sees it moving firmly into the cloud space and away from a reliance on physical servers. Some see PBX evolving into a middleman format, “In the long term, I think the industry will stop thinking about the PBX as a closed system and instead see it as a set of open platforms that work together to deliver the necessary functionality,” said Zeus Kerravala, founder and principal analyst at ZK Research.

Via: Tech Target

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