Hosted solutions are housed with your telecommunications service provider. You don’t need to buy, install and maintain the PBX equipment itself if you take this option. Rather your equipment is located in the telephone company’s exchange and you use it on a contract basis. It’s updated automatically, and is cost-effective, because you only pay for what you use.
A private cloud is the best option for companies who prefer to keep their communications infrastructure within their own technical environment. All the call cost savings and features of a hosted solution are still available, but you’ll need to buy the infrastructure and pay for updates and maintenance.
Financial institutions and large corporates usually prefer the cloud PBX option.