cloud pbx

What is Cloud PBX and Why it is Better Than An On-Premise Phone System?

Before the outburst of the COVID-19, fewer than 20 percent of employers in the U.S. were working from home. But after a month of the COVID, more than 70 percent of organizations were running their businesses remotely. And nearly 76% of their employers wanted to continue working remotely even after the pandemic is over, according to the Pew Research Center. Businesses like call centers that have always operated with all their employees under one roof need an office phone system that can cater to their needs. And Cloud PBX is the best option available in this regard.

The VoIP PBX phone system works the same as the traditional PBX but with huge cost-saving and maintenance advantages. This phone system eliminates the need for businesses to invest in costly hardware required for on-premise phone servers. The system can be set up in minutes and you can also reconfigure it for additional phone lines, roles, and call flows equally fast. If you are in two minds about whether to go for this technology or not, continue reading. This blog encapsulates all the information about this technology to help you make your decision.


What is a Cloud PBX?

A regular PBX (Private Business Exchange) is the internal phone network your business or organization uses to call individual extensions within your office (or across remote workspaces, as has become more common lately). The IT department of your company connects your organization’s PBX to the public switched telephone network (PSTN) or a VoIP network so you can make external calls as well.

But Cloud Phone System, on the other hand, is a virtual phone system that provides a secure and reliable business phone that works through the internet. It uses softphones and the Internet to connect callers. The hardware involved in cloud phones is located at a remote data center, and not on-premise. Unlike traditional PBX, with VoIP PBX, you don’t have to purchase and maintain the big machines. This is a huge plus for small and medium-scale businesses that are always short of funds.

Cloud Office Phone vs. On-Premise Phone Systems:

Let’s understand what are the similarities and differences between a PBX hosted in the cloud and one hosted on-site (on-premise)?

Hosted PBX:

The major difference between hosted PBX and traditional PBX is that with cloud phone, hardware is not physically located onsite. Cloud-based phones are hosted offsite at a data service center. These data server centers provide phone services over the internet and no additional equipment is needed at the business. Users have the option of whether to use handsets and headsets or computer-based call software to place and answer calls.

With cloud phones, the call is connected through a router. So, all calls are trafficked through the business’s server and phone software. Phones ring as usual, and if you have these features established, callers can leave voicemails, wait on hold, or conference in the same as with traditional phone systems. With the advent of fast internet services like fiber networks, virtual phone systems have become able to improve the quality of calls.

On-site PBX:

The servers and all other hardware needed for a phone system are located on the premises. The business using this phone system owns and maintains all phone hardware itself. Traditional PBX phones require a team of professional workers to regularly maintain and update the equipment. This includes setting up or disabling individual phone lines as employees are hired and leave the organization.

However, an on-premise phone system can employ the same features as a cloud-based system like call waiting, voicemails, auto-attendant, call forwarding, call recording, call metrics, software integrations. But for managing these features, you simply require a staff dedicated to overseeing the phone system. Maintaining this system requires a lot of time and funds, which is why many companies are switching to cloud PBX systems.

Why Hosted Phone System is Better?

Following are the main advantages that are making businesses choose cloud PBX over traditional PBX.

Better Scalability: 

Cloud phones are much easier to scale and they even support an unlimited number of users. Adding a user (or a new phone number) is an instantaneous task. You only require a few clicks of a mouse to do so.

Lower Cost: 

Hosted PBX phones are comparatively more budget-friendly than on-premises PBX phones. This is because they do not require hardware or ongoing updates and maintenance.

Facilitates Remote Working:  

With cloud-based technology, there will be a minimal hassle for you to set your employees up in-home or remote offices. The phone system operates over the Internet, your employees can use it anywhere in the world. It will be operated as one unified call center.

Easy to Maintain:  

Your off-site VoIP provider will handle the maintenance of your cloud-based phone system. They will handle infrastructure upgrades, hardware maintenance, and fixes. Even if there is a problem with your phone system, they will resolve the issue.


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