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Hosted PBX is a service where the call platform and PBX features are hosted at the service provider location. The business end users connect via IP to the provider for voice service. “Hosted” means to say that the hardware and PBX is hosted at an off-site location from where the VoIP telephone service is being used.

How does hosted PBX work? How Does a Hosted PBX Work? A hosted PBX shifts your phone and communications infrastructure over to a trusted VoIP provider. Instead of individual phone extensions, each phone is replaced with a VoIP desk phone. With the implementation of the hosted PBX, your voice communications use the existing data network. What is a hosted phone system? Hosted phone systems, or virtual phone systems, enables you to have a fully functional telephone service without needing to purchase system hardware, other than handsets. … The options in hosted phone systems include both traditional PBX and Voice Over Internet Protocol (VoIP), which uses the Internet to transmit call