Is Hosted IP or IP Centrex is Right for Your Business

Is Hosted IP or IP Centrex is Right for Your Business

This post was contributed by guest author: Nick Patel

Nick Patel is a freelance enthusiast and ingenious writer who enjoys the challenges of creativity attention to detail. In free time I like to write stories and Articles.

Technological advancement can enhance your business growth with its magic touch. The IP telephony system is one of the most valuable business tools which can increase the overall productivity and marketing to cater your customers. Which IP telephony system you should install- IP Centrex or Hosted IP PBX?

What is IP Centrex?

IP Centrex

The full form of Centrex is Central Exchange. By installing Centrex PBX, you can stay connected with your employees and customer. No need to buy, install and manage PBX within your office premises. IP Centrex is the system which helps you to get all the benefits of PBX without having it in-house. The Centrex Service Provider provides direct lines to make the communication secure. In the case of a high number of subscriptions, individual service providers place CPE equipment inside customer premises. You don’t need to pay a penny for the equipment as it is owned and managed by the service provider.


  • No need of capital to buy PBX system.
  • No power bill has to be paid for PBX system.
  • Maintenance hassle of PBX system is none of your concern.
  • You can use the regular analog phone with IP Centrex.
  • The numbers of extensions, accommodated by Centrex, are numerous.
  • You need to pay only for the PBX model you choose.


  • The additional cost is required each time you want to extend the system.
  • It is a fixed time basis contact, so you can’t terminate before the period in the contract.
  • Charges are based on the per-month and per-line basis.
  • Changes in the existing set up are time-consuming.
  • Cables and other accessories are needed, and you have to get analog or digital trunks only from the Centrex provider.

What is Hosted IP?

Hosted IP Solution

IP PBX is based on internet protocol which is helpful to switch calls. Here, the customers have IP phones, connected to the computer network and the PBX in hosted IP is managed by the service providers at their premises.


  • Reducing cost is easier here as IP phones are connected to the computer network and one network is enough to maintain the whole voice network.
  • A hosted IP PBX supports advanced features like Single Number Reach, Click-to- dial, Unified Messaging, etc.
  • Apart from IP phones, users can use softphones and Wi-Fi phones with hosted IP PBX.
  • SIP trunks are used to make outbound calls through the internet, and these trunks can be taken from any service providers.
  • Additional set up to the existing system can be done more easily, and even users can configure their call settings.


  • IP phones are quite expensive than analog phones.
  • The LAN and WAN must be planned to suit the particular bandwidth of each call.
  • The IP phones won’t work if the computer network fails.

Now you know the difference between IP Centrex and Hosted IP. Choose the best for your business and go along.

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