What Does Hosted Private Branch Exchange (Hosted PBX) Mean?

Hosted private branch exchange (hosted PBX) is a telephone exchange system built, delivered and managed by a third-party service provider. Hosted PBX is an IP-based telephony solution provisioned and accessed entirely through the Internet.

Techopedia Explains Hosted Private Branch Exchange (Hosted PBX)

Hosted PBX generally provides the same features and services as a traditional private branch exchange system, but hosted PBX eliminates the need for building and managing an in-house PBX system. The service provider, typically a telecommunications provider, Internet/cloud service provider builds and hosts the PBX system on its premises. The hosted PBX is connected with customer/client telephone systems through IP-based networks and/or the Internet. Once a call is received, the hosted PBX routes that call to the corresponding client. Similarly, the client/customer connects to the hosted PBX using IP-based phones in order to make a call.