Similarly to conventional telephone systems, the Hosted PBX system makes both internal and external telephone functions available. However this is no longer a physical system, which is installed at the user's site. Instead this is made available on the network; i.e. in the cloud. Although no telephone system hardware is actually installed on the customer's premises, the customer remains able to utilise all of the characteristic features; i.e. as a virtual telephone system. Hosted PBX systems are operated in the highly available computer centres of providers. In order to be able to profit from the Hosted PBX service, the customer only requires a data connection with the requisite performance.
A significant benefit initially lies in the hardware that the customer no longer requires. It is therefore possible to save on the associated installation, operation and maintenance costs. Because the services of the virtual telephone system are made available via the data network, the company also saves the previously essential separate connection with a telephone network.
A major advantage of virtual telephone systems is their scalability and flexibility. No high investment costs arise at the outset. If the company grows then the telephone system can simply be scaled with it, because all expansions can be realised for the company on a purely software basis.
And not least, the Hosted PBX service also enables new application scenarios and services. Through the merging of data services and telephone services and the consistent use of Voice-over-IP (VoIP) services it is possible to realise voice services on computers and information and internet services on telephone devices with ease. Furthermore, nomadic use and data exchange - e.g. during telephone conferences - no longer constitutes a problem either.