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What is a Cloud PBX?

If you’re shopping around for an Internet-based phone system, you’ve probably come across the term “Cloud PBX”. For customers new to VoIP technology, this term may seem a little confusing.

That’s completely understandable; most definitions on the Web use complicated  jargon. Well we’re to make your research a lot easier. In this article, we’ll explain, in simple terms, what a Cloud PBX is and how it works in conjunction with an Internet-based phone system.

What is a Cloud PBX?

A Cloud PBX is one part Cloud Computing and one part PBX.

Cloud Computing refers to the act of storing and accessing data over the Internet rather than on a computer or other hard drive. PBX stands for Public Branch Exchange. A PBX is the technology behind a telephone provider’s ability to route calls.

When you combine both parts of the term, you see that a Cloud PBX is simply a phone system based over the Internet. This is also referred to as an Internet-based or VoIP phone system.

On-Site vs The Cloud

Traditionally, a PBX had to be run on-site, meaning that a large amount of hardware, installation and money was needed in order to operate this type of phone system. This type of system could end up costing a business upwards of $5,000 on top of the upkeep and management this system would require.

By using the Cloud, the cost of this phone system has been radically reduced. With a Cloud PBX, you simply choose a provider and they host the phone system for you, virtually. Since the system is completely managed by them, you won’t be responsible for the upkeep and maintenance fees you would be with an On-Site system. Most providers offers access to their Cloud PBX for a monthly fee averaging around $25.

Cloud-Based Phone System

By taking advantage of Cloud technology, scaling and expanding your phone system is extremely easy. Instead of having to purchase more hardware and technology for a new employee, you simply talk to your provider and add another person to your account.

With a Cloud PBX, you’ll still have access to the calling features you’ve become accustomed to with your on-site system. These features include call recording, IVR/Auto Attendant and Time of Day Routing. These, and many more features, are offered over the Cloud and are accessible on a Dashboard given by your provider.

Besides the cost advantage, many businesses choose a Cloud-Based phone system because of its flexibility and accessibility. Since the technology is hosted over the Internet, you can access and use your phone system anywhere that has Internet access. This is extremely useful for remote employees.

A Cloud PBX has advantages for businesses of every size. If you’re interested in a Cloud PBX phone system, there are customizable solutions offered by a number of providers. Do your homework and choose the one that will work best for your individual needs.