Simply put, a hosted VoIP PBX system is a phone system that runs over the Internet. The phone system software resides in a data center that has a high speed connection to the Internet. The consumer no longer has to purchase and maintain any hardware or software as was the case with analog phone systems. The only equipment the consumer needs is a VoIP phone plugged into a high speed Internet connection (cable, DSL, T1 etc.) It cannot run on a dial up connection to the Internet.
Since the software for the phone system is located in a data center attached to the Internet (typically called 'Cloud Computing') the consumer can login and update the settings anytime they want to. And since it is based on software, new features are typically added frequently. Some of the standard features seen in most hosted VoIP PBX systems include:
And much more. Typically there are more features available with a VoIP PBX than would be available with an analog phone system.
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