Cloud PBX Phone System- Definition, Functioning, and Benefits

Cloud PBX Phone System- Definition, Functioning, and Benefits

A reliable communication system is the essence of every business. It helps organizations to get the total potential out of their employees. Businesses were using the traditional landline office phone systems sometimes back. These phones were only capable of making voice calls and as the demands from communication systems arose, a new technology (on-premise PBX) came into play. Although this technology, besides its heavy costs on installation and maintenance, was working satisfactorily, yet after the trend of remote working, this technology failed to cater to the business needs. As a result, Cloud PBX technology came to replace the previous phone systems.

After the outburst of the COVID-19, continuing with any other office phone except Cloud-based VoIP Phone System became impossible. This is because, after this pandemic, the percentage of employees working from home rose to 71 percent which was only 20 percent before. So, if you’re a business owner that was operating with on-premise VoIP, this blog will guide you on why you should change your phone technology.

What is a Cloud PBX and How Does it Work?

Before diving into the details of Cloud-based PBX, let’s understand first what Private Branch Exchange is. PBX is the internal phone network your business or organization uses to call individuals within your office. And to communicate outside your office, your IT department will connect your PBX to the PSTN or VoIP. Cloud-based PBX, on the other hand, is a virtual phone system that provides a secure and reliable business phone system through the internet.

This phone system has some other names too like a hosted phone system, hosted PBX, Virtual Phone System, and many more. Whatever the name you call it, this VoIP Phone System is exclusive to your business and uses softphones and the Internet to connect callers.

Some Advantages of Hosted PBX over Other Phone Systems:

Following are the benefits that make IPPBX a better option than all other phone system options out there.

Lower Cost:

Traditional landline phones and on-premise PBX need a lot of capital for their installation. You need to buy expensive hardware and install phone lines to work with these systems. Furthermore, for the maintenance of these systems, you need to have a team of experts that also adds up to the total expense. And cloud Phone system, on the other hand, not only saves you from all the costs of installation but maintenance is also on the service providers. Also, most VoIP providers offer free local calls, and the international calls are also not as expensive as with other systems.

Easier Maintenance: 

The VoIP provider handles the upkeep of your cloud-based phone system. They not only handle the infrastructure upgrades but resolve all the maintenance problems too. Also, if their own system incurs some problem, you won’t have to go offline. They always have a backup for these kinds of situations. They provide 24/7 support which is very important especially if your business is dealing internationally.


VoIP PBX is a highly flexible technology that not only allows its users to use whatever device they like but you can use it anywhere and anytime. This is a very useful benefit especially in areas where disasters and natural calamities often occur.


The virtual phone systems are easily scalable and generally support an unlimited number of users. If you want to grow your communication network with the growth of your business, IPPBX allows this. Moreover, you can also scale down your network if needed with just a few clicks.

Up to Date Features:

Online Phone System comes with several features that make it more relevant in today’s scenario. Features such as call recording, call analytics, vanity phone numbers, instant messaging, desktop sharing, web conferencing, call recording, call reporting, auto-attendant make it a complete PBX solution.


One of the greatest benefits of hosted phone system is that it offers business continuity. In the event of any natural or human-made disaster, your business will not get affected. This is because cloud technology maintains replicas of your company data at data centres situated in different locations. Hence, even in the case of a flood or tornado at the site office of the service provider, you will be able to continue your communication.

Wrap Up:

There are a great many reasons for you to switch to a Cloud PBX phone system. Among them are the benefits like scalability, flexibility, reliability, and added features that it offers over other phone systems.  Almost every business needs these features for the smooth working of its communication and to make communications more effective. Hence, if you are running a business that needs a communication system, we recommend you to go with the best. Choose Hosted PBX instead of other phone systems.