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IP PABX-
One of the latest trends in PBX development is the VoIP PABX, also known as an IP PBX, which uses the Internet Protocol to carry calls. Most modern PBXs support VoIP. However, recently open source projects combined with cheap modern hardware are sharply reducing the cost of PBX ownership.

Functionally, the PBX performs three main duties:

Establishing connections (circuits) between the telephone sets of two users.
Maintaining such connections as long as the users require them
Disconnecting those connections as per the user requirement.
Providing information for accounting purposes.

Hosted PABX

A hosted PBX system delivers PABX functionality as a service, available over the Public Service Telephone Network (PSTN) and/or the internet. This means the customer organization doesn't need to buy or install PBX equipment. Instead of buying PBX equipment, users contract for PBX services from a hosted PBX service provider like SWIFT NETWORKS

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