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What is a hosted PBX (cloud PBX)?

By the VoIPer team ยท Updated 3 October 2026

A hosted PBX (also called a cloud PBX) is a business phone system that runs in your provider’s data centre instead of in a box in your office. Your phones connect to it over the internet.

What a PBX does

PBX stands for Private Branch Exchange. It is the brain of a business phone system: it routes incoming calls, connects internal extensions, runs menus and voicemail, and decides what happens out of hours.

On-site PBX vs hosted PBX

  • On-site: you buy the hardware, it sits in your building, changes often need an engineer, and it usually relies on ISDN or analogue lines.
  • Hosted: the provider runs it for you, you manage it from a web portal, and phones work from any location with internet.

Benefits of a hosted PBX

  • no upfront hardware cost
  • works for remote, hybrid and multi-site teams
  • automatic updates and security patches
  • features such as call recording, queues and analytics built in
  • easy to add or remove users as your team changes

Who it suits

From one-person businesses to teams of hundreds. It is especially strong for businesses with staff in more than one place, or anyone facing the end of ISDN.

VoIPer’s VoIP phone systems are hosted PBX systems, set up and supported from the UK.

Ready before the switch-off

Try a VoIPer phone system free for 14 days, or talk to our team on 0800 33 22 66.