Hosted PBX vs SIP Trunking

Denise D'Arienzo : Business Communications in the Cloud
Denise D'Arienzo

Hosted PBX vs SIP Trunking

By now, most businesses know exactly what VoIP is and all the benefits that it can provide, including cost efficiency and advanced communication features. However, there may still be some confusion when it comes to differentiating Hosted PBX and SIP Trunking.  

Hosted vs SIP Diagrams.jpg

Businesses who are ready to replace their current phone system and move to “the cloud” will benefit from a Hosted PBX Phone System, like the one offered by Net2Phone Office

  • Hosted PBX provides advanced phone system functionalities while not having to account for all the necessary on-site equipment.  
  • On-site equipment is completely replaced, hosted, and maintained by Net2PhoneOffice offering small businesses with little to no technical expertise peace of mind to focus on their business. 
  • A Hosted PBX service will route calls, handle holds and transfers, and allow more than one person to be reached from a single business number.
  • Hosted PBX also manages all incoming calls and comes full with standard phone system functionality including voicemail, faxes, automated greetings/messages, touchtone menus, conferences, call records, and phone calls.

For a small-medium sized business, Hosted PBX is the better choice.

Businesses with an on-premise IPPBX who are not ready to do a complete replacement or dispose of their PBX equipment will benefit from SIP Trunking.

  • SIP Trunking uses VoIP to facilitate the connection of a PBX to the Internet Service Provider (ITSP).
  • Users must either have an IP-PBX capable of connecting to all internal end users and an Internet Telephony Service Provider (ITSP), or a VoIP enabled gateway that works as an interface between the PBX and ITSP.
  • SIP Trunking replicates regular phone lines at a fraction of the cost
  • SIP Trunking will require some configuration and maintenance

For a business with 100+ employees, an on-premise PBX, and a technical staff, SIP Trunking is the better choice.


Net2Phone Office offers both Hosted PBX and SIP Trunking services.  The Hosted PBX service includes unlimited calling to the US and 21 international destinations for just $19.99/seat/month.  The SIP Trunking service is available with the same unlimited calling plan for only $14.99/channel.  Contact Net2Phone Office for a free quote!