Procurement Market Intelligence Report
Hosted PBX Services
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Hosted PBX Services Global Overview
Definition
Summary
Hosted private branch exchange (PBX) services, also known as virtual or cloud PBX services, are a type of communication service. A service provider operates and maintains an entire office telecommunications system remotely using Voice over Internet Protocol (VoIP) technology, which allows users to make calls over the internet. Services primarily involve call management, but they can also include functions such as call recording and an automated call-routing attendant (or auto attendant). Buyers are small and midsize firms or companies that have mobile employees (e.g. real estate firms and consulting firms). Suppliers are telecommunication solution providers and hosted PBX specialists.
This Report Includes:
- VoIP Communications
- Cloud-Based Multi-line Telephone Systems
Not in this Report:
- On-Premises PBX
- Open-Source PBX
- Video Conferencing
- Audio Conferencing
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Global Hosted PBX Services Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 Oceania & Southeast Asia | 20,210 |
| #2 India | 7,010 |
| #3 Europe | 6,280 |
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Geography Drilldown - US
Average Cost of Hosted PBX Services
United States
2026 Market Pricing$9.00 to $XX.XX
per user per monthAverage Price
Prices in the Hosted PBX Services market range from $9.00 to $XX.XX, depending on Number of users, Contract length, Plan minutes and PBX functions. For example, lower prices are associated with More users ($10 to $25 per user per month), whereas higher prices are associated with Fewer users ($25 to $60 per user per month).
Need the scoop on international price trends?
Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Hosted PBX Services Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Hosted PBX Services market, prices in the US have grown 3.6% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more
United States (2022-2025)
United States (2025-2028)
Compound Annual Growth Rate
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Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Hosted PBX Services
Total cost of ownership is Medium in the Hosted PBX Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Hidden Fees may raise the total cost of ownership unexpectedly.
Negotiated Before
Customization
Installation
Billed During
Hardware
Utilities
Unforeseen
Hidden Fees
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -1.5 in the United States. Buyer power is most positively impacted by Forecast Price Trend. It is most negatively impacted by Availability of Substitutes. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Buyer power forecasts: your glimpse into the future
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- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Medium, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Telecom Equipment Manufacturers
- Computer Equipment Wholesalers
- Internet Service Providers
- Software Publishers
2nd
Tier Suppliers
- Semiconductor & Circuit Manufacturers
- Computer Equipment Manufacturers
- Transmission Line Construction Companies
- Intellectual Property Licensing Firms
Biggest Hosted PBX Services Suppliers in the US by Revenue
The largest Hosted PBX Services vendors by revenue in the US are Fusion Connect, Inc., Logmein, Inc. and Ziff Davis, Inc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Telefonaktiebolaget LM Ericsson AB | Global | US | >10,001 | < 5 | ||||
| Nokia Oyj | Global | Espoo, FI | >10,001 | < 5 | ||||
| Ringcentral, Inc. | Global | BELMONT, CA | 1,001-10,000 | < 5 | ||||
| Plantronics, Inc. | Global | SANTA CRUZ, CA | 1,001-10,000 | < 5 | ||||
| Ziff Davis, Inc | Global | NEW YORK | 1,001-10,000 | < 5 | ||||
| Logmein, Inc. | BOSTON, MA | 1,001-10,000 | < 5 | |||||
| 8x8, Inc. | Global | CAMPBELL, CA | 1,001-10,000 | < 5 | ||||
| Mitel Networks Corp | Global | Ottowa, CA | 1,001-10,000 | < 5 | ||||
| Fusion Connect, Inc. | Global | Atlanta, GA | 501-1,000 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Hosted PBX Services market is 11.5% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Purchases. The cost trend for this component is stagnating, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
The market share concentration is low since so many small telecommunication and IT companies are capable of providing PBX services. Demand does not rise too high since buyers have many vendors to source from, and buyers can leverage the availability of other vendors to keep prices low.
Vendors in this market experience moderate supply chain risk since services rely on technology that involves risky commodities such as telecom equipment and semiconductors. Risk may get passed on to buyers in the form of higher prices.
Vendors experience low financial risk since telecom providers can maintain high profit margins due to low costs and a variety of different services. Low financial risk lessens the risk of hosted PBX service discontinuity and increases buyer power.
The United States is a net importer of computers, meaning it imports more computers than it exports. While lower manufacturing costs abroad drive down prices for imported computers, relying on imports can lead to potential shortages or price increases if there are supply chain disruptions due to geopolitical tensions, trade disputes, or global crises.
Supplier Information
8x8, Inc.
8x8, Inc./DE/ is a global provider of integrated customer experience and business communications solutions to enterprises. It delivers a cloud-native 8x8 Platform for Customer Experience (CX), which integrates voice, video, messaging, and team collaboration channels into a single architecture. It serves mid-market,... Subscribe to learn more
Fusion Connect, Inc.
Fusion Connect, Inc. is a private company operating globally in the information sector. The company's offerings include hosted pbx services. Founded in 1997, the company is currently headquartered in Atlanta, Georgia, United States of America with an estimated 750 employees. Subscribe to learn more
Logmein, Inc.
Logmein, Inc. is a public company operating in the information sector. The company's offerings include hosted pbx services and videoconferencing software. Founded in 2020, the company is currently headquartered in BOSTON, Massachusetts, United States of America with an estimated 2760 employees. Subscribe to learn more
Mitel Networks Corp
Mitel Networks Corp is a private company operating globally in the manufacturing and information sectors. The company's offerings include office phones, hosted pbx services, pbx phone systems and videoconferencing software. Founded in 1973, the company is currently headquartered in Ottowa, Ontario, Canada... Subscribe to learn more
Nokia Oyj
Nokia Oyj is a public company operating globally in the manufacturing and information sectors. The company's offerings include hosted pbx services, radio antennas, gps antennas, network switches and pbx phone systems. Founded in 1865, the company is currently headquartered in Espoo, Finland with an estimated... Subscribe to learn more
Plantronics, Inc.
Plantronics, Inc. /CA/ is a global communications technology company that designs, manufactures, and markets integrated communications and collaboration solutions for professionals. It offers a comprehensive selection of premium audio and video products, including wired and wireless communication headsets;... Subscribe to learn more
Ringcentral, Inc.
Ringcentral, Inc. is a public company operating globally in the information sector. The company's offerings include hosted pbx services, call tracking software and network voice services. Founded in 1999, the company is currently headquartered in BELMONT, California, United States of America with an estimated... Subscribe to learn more
Telefonaktiebolaget LM Ericsson AB
Telefonaktiebolaget LM Ericsson AB is a Global operator providing Hosted PBX Services from their headquarters in US. This operator has a staff size of about >10,001 employees. According to ProcurementIQ estimates, Telefonaktiebolaget LM Ericsson AB holds < 5% of market share... Subscribe to learn more
Ziff Davis, Inc
Ziff Davis, Inc. is a global digital media and internet company focusing on technology, shopping, gaming and entertainment, connectivity, health, cybersecurity, and marketing technology sectors. It operates two business lines: Digital Media business, which offers content, tools, and services through its portfolio... Subscribe to learn more
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Procurement Management KPIs for the Hosted PBX Services Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Resolution Time and IT Support Employees per End Users. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Support and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Average Resolution Time |
|
Number of support tickets Time to resolve support tickets |
Telecommunications services must be available as often as possible, considering how important communication is to a business, particularly one who hosts their own communication system. Poor resolution time may indicate that a vendor performs poorly with other services. |
| IT Support Employees per End Users |
|
Number of IT support employees Number of end users |
Vendors may be servicing multiple buyers. In that case, a vendor's IT support employees will be in higher demand. Buyers need to know how many other clients vendors are servicing so buyers can gauge how available IT support will be. |
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Customer Support
How have you changed your hosted PBX services in response to customer complaints and suggestions?
What is your client renewal or repeat business rate? Why do companies renew their contracts with your business?
Qualifications
Do you have case studies or client testimonials detailing the hosted PBX services you have performed? Can we speak to or visit a current client to inquire about their experiences?
How long have you provided these services to your longest-held client? Who are your five largest clients?
Competition
How do you market your hosted PBX services to potential clients? Do you rely heavily on repeat buyers?
How does your firm maintain a competitive edge?
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Hosted PBX Services RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should outline the details of their organization, including the number of employees, office locations and operating hours.
Buyers should state their reasons for purchasing hosted PBX services and list the benefits they expect to receive from the network voice services.
Statement Of Need
Buyers should state the specific features they require for their network voice services (i.e. automatic callback, call waiting, call redirect, call hold, call transfer).
Buyers should state which additional features they desire from their hosted PBX services (i.e. call accounting system, automatic call distributor, 911 services).
Project Budget
Buyers should state their budget for the hosted PBX services.
Buyers should include their desired contract length and information about the payment schedule (i.e. monthly or annually).
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We display average pricing information, trends and market data.
Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
