When buying a new business telephone system, you may find yourself looking at quotes from managed PBX service providers. Instead of buying a traditional PBX or Key System, manager PBX providers work on an Application Service Provider (ASP) model. You just buy some generic telephones, usally SIP VoIP phones, and provider hosts and maintains the "PBX". Your phones connect to the provider over the internet, required significant internet bandwidth. Managed PBXs have lingered as an afterthought for most telecom system purchasers, but with the cost of bandwidth dropping precipitously in the past few years, telecom purchasers and taking a fresh look at managed PBXs.
Managed PBXs work best in environments where you have a few phones in many different locations. If you have all your phones in 1 location a traditional PBX would normally make more sense. The biggest downside of Managed PBXs is in the cost. Just like with the old fashioned Centrex model, you pay a monthly fee for each phone. Some even call managed PBXs VoIP Centrex. With a traditional Key or PBX system you only pay for as many lines as you might use all at once, but with Managed PBXs you have to pay monthly for every phone.
In a very small environment where the phone-to-line ration is around 1 to 1, managed PBXs price out very competitively. However in larger applications, where you have many more handsets then outside lines, you are always better off with a traditional telephone system
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