What the Heck is a Cloud PBX Phone System?


A cloud PBX phone system can be an abstract idea to some, but it’s not as confusing as you might think. In this week’s blog we’ll boil PBX basics down to brass tacks.


Q: What is a cloud PBX phone system?

A: PBX stands for Private Branch Exchange. A PBX system is essentially the command center of a company’s phone system and is responsible for a suite of basic-to-advanced telephony features and functions. Without getting into the nitty-gritty of technical details, a PBX system provides business-critical functionality in addition to basic telephony features, such as:

  • Auto-attendant
  • Call forwarding/ hold/waiting/transfer
  • Conference calls
  • Call recording
  • Hunt groups
  • Voicemail
  • Calling plan management

Including but not limited to these capabilities, features provided by a PBX system will vary depending on the hardware and depth of service the company chooses to implement on site.

A cloud PBX phone system is the same as a regular PBX with one essential difference: —you guessed it—it’s on the cloud!

With a cloud hosted PBX system, companies get all the features of a regular PBX system without having to purchase, run, or maintain the system themselves. The hardware is owned and operated by a hosting VoIP provider, so all essential IT tasks are taken on by their staff.


Q: What are the advantages to a cloud PBX phone system?

A: For most businesses, a hosted PBX provides a wealth of benefits. Broken into three basic categories, hosted VoIP is 1) more cost-efficient, 2) more feature-rich, and 3) safer to use than an on-premise system.

1). Cost-efficiency

Installing an on-premise PBX system costs a significant amount of money for most companies, and will end up costing even more to maintain and upgrade over time. Luckily, outsourcing your PBX system to a hosted VoIP provider cuts out the need to make those expensive upfront purchases and operating costs. You’ll only pay a flat monthly fee with no surprises.

2). Feature-rich

A hosted PBX system gives companies the ability to do more with their communications system since it’s on the cloud. While a regular PBX might be limited to just the office, a hosted PBX grants employees the ability to use their company’s network through a mobile app anywhere he or she has an Internet connection. Common mobility features include:

  • Simultaneous ring
  • Instant messaging and presence (IM&P)
  • Outlook calendar and directory integration
  • Cross-platform communication
  • In-call controls

Additionally, if a business has multiple branches to operate, a hosted PBX system unifies each branch into a single network—making enterprise-wide adjustments easy and efficient.

3). Minimize Risk

A cloud PBX phone system is invulnerable to disaster in ways a regular PBX can’t be. Since your service is administered through the cloud, your phone system will always be up and running—even when disaster strikes. Whether it be a temporary matter or a permanent setback, your company will always be online and in contact.


Need more? The cloud PBX phone system you’re looking for is right here!


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