“Benefits associated with a Hosted VoIP service rather than a traditional phone system, like an on-premise IP-PBX, are lower initial costs. A Hosted VoIP service costs much less in time and money to set-up than an on-premise PBX. In many cases, hosted VoIP providers offer no set-up fees for a hosted VoIP system and a business can be up and taking calls in a matter of hours.
VOIP (also known as a Cloud Based PBX, and/or hosted PBX) is where the PBX hardware and software that handle calls for a business or person resides with a provider off-site on the Internet. Through signaling, calls and other communications are initiated and routed to other parties. The advanced features, such as forwarding, music on hold, auto-attendants, conferencing, etc., are handled by the provider’s software and hardware rather than on premise with the business.”