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Hosted PBX Market

Hosted PBX Market- Evolution by Tracking Historical Developments
Hosted private branch exchange (PBX) also referred to as virtual PBX, allows businesses to use
sophisticated telephone systems without investing in the telecom equipment. The call platform
is hosted at the service provider’s location. The subscribers connect via IP to the service
provider for voice service. It is a cloud-based system that can be accessed via an IP network. As
all services are hosted in the cloud operating costs are reduced. The service provider takes care
of the hardware, software and necessary maintenance. Hosted PBX allows employees to work
from home or their cellphones and still be connected to the office telephone system. Call
routing and switching is handled by service providers at their own location. Such systems can
function over public switched telephone networks (PSTN) and VoIP. Like a regular telephone
system, calls can be transferred or put on hold, conference calls can be set up and the phone
can be answered by an automated attendant who can route callers to different departments in
an organization. As per business requirements, ranging from a single user at an office to
multiple users scattered across different continents, necessary solutions can be provided by
hosted PBX service providers.
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Infrastructure costs have direct impact on profitability of companies. The key growth driver for
hosted PBX market is the significant cost savings in telecom infrastructure it offers to
companies. Also, as the office phone system is virtual, location constraints are eliminated.
Businesses are increasingly going global and hosted PBX makes it possible for them to establish
a virtual presence at locations where they do not have a physical presence. Thus, increasing
number of companies are opting for these services. Traditional phone systems are also limited
by the number of users they can handle. Virtual systems can expand to accommodate growing
needs of a business. With intuitive web interfaces which anybody can manage and monitor,
hosted PBX system is more user friendly than traditional telephone system. The multiple
security layers and failover technology offered by service providers is further likely to fuel the
growth of hosted PBX technology. However, as voice quality and connections depend on
Internet service, any disruptions in Internet results in loss of phone service. Furthermore, the
unfamiliarity of hosted PBX users with VoIP technology and support issues from service
providers pose challenges in the growth of hosted PBX market.
The hosted PBX market can be categorized in terms of organization size, end-users, and
services. On the basis of organization size the market can be categorized into small and
medium-size enterprises (SMEs) and large organizations. On the basis of end-users, the market
can be classified into financial services, health care, retail, education, manufacturing, real
estate, professional services and others. Also, on the basis of services, the market is categorized
into network services, managed services, security services, unified communications and cloud &
IT services.
The major companies in the hosted PBX market include XO Communications, LLC,, Inc., Jive Canada, RingCentral, Inc., Digium, Inc., 8x8, Inc.,,Inc.,
TelePacific Communications, 3CX, Megapath, Engin, Bullseye Telecom, Nextiva, Vonage, Mitel
Networks Corporation and ShoreTel Inc.
The report offers a comprehensive evaluation of the market. It does so via in-depth insights,
understanding market evolution by tracking historical developments, and analyzing the present
scenario and future projections based on optimistic and likely scenarios. Each research report
serves as a repository of analysis and information for every facet of the market, including but
not limited to: Regional markets, technology developments, types, applications, and the
competitive landscape.
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