Hosted VoIP, hosted PBX, also known as a cloud-based phone service (Cloud PBX) is one in which the IP-PBX is located with the provider in their data center who then provides the technology and connections to make the communications. Phones within the customer's business network connect to the hosted IP-PBX which handles all the signaling, calls and features. Maintenance of the IP-PBX server is completely done by the provider.
Typically charging a monthly fee that is dependent on the number of users (phones or seats), most providers offer plans that may include a number of call minutes, as well as a packaged list of included features. Some advanced features may incur an additional cost increasing the monthly fee. Services can be added or deleted using the customer's web based account and accounts can be created quickly. Phone numbers, including toll free numbers can be purchased and then assigned to the customer.
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Hosted VoIP providers usually offer a service which include many business phone system features and future development of new features is totally dependent on the provider. Implementation by the customer is quick and relatively easy and would require less in-house resources than an on-premise IP-PBX system. Additionally, cloud PBX providers have designed the user's interface for easy self management of their services and configurations.
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