What is Cloud PBX?

Phone systems can be a nightmare for smaller businesses.  Often, they struggle to stay abreast of changes in communication technology because of steep learning curves and even steeper fees associated with running a traditional PBX phone system.

But that was when businesses had no choice but to suffer the limitations of legacy communication mechanisms. Today, many entrepreneurs are recognising the value of cloud PBX-based phone systems. Some of you are probably hesitant to bring this technology on board because you don’t fully understand it.

And that reaction is understandable. It would be unwise to trust the future of your company to technology that you cannot fully comprehend. Fortunately, this concept isn’t that hard to understand. To make sense of ‘Cloud PBX’, you need to first understand the individual terms that it consists of.

What is the Cloud?

‘Cloud’ is a very broad term. Generally speaking, in most cases, it refers to programs and services that operate over the internet, tools that must be accessed and utilised virtually because they are not stored on physical media.

What is a PBX?

This is an abbreviation for ‘Private Branch Exchange’. Again, speaking broadly, a Private Branch Exchange is a collection of cables, switches and other technological components that enable communication in an organisation to occur internally and externally. You wouldn’t be wrong to call a PBX a machine.

It’s the beating heart of a company’s communication systems, responsible for receiving and redirecting telephone calls to the relevant extensions. A traditional PBX is a clunky piece of technology. First of all, it is quite complicated.

Secondly, it is situated on the premises of the company whose communication mechanisms it is expected to manage. Thirdly, it is expensive to install and maintain. You need qualified IT professionals on hand to make repairs and upgrades whenever the need arises.

Once upon a time, despite their incredible limitations, businesses had no choice but to utilise the traditional PBX. However, ever since cloud PBX technology entered the picture, they have become the only rational choice for any small business that wants to minimise costs whilst also enjoying the efficiency in communication that is only seen in the expensive phone systems adopted by large corporations.

What is a Cloud PBX?

If you know what the ‘Cloud’ is and you understand what a Private Branch Exchange does, you can probably guess what a cloud PBX is. But in case it still doesn’t make sense, a cloud PBX is a Private Branch Exchange that operates on the cloud.

It is a phone system that exists on servers situated off-site and managed by a third party that charges a small monthly fee for its service. A Cloud PBX performs all the same functions as a Traditional PBX and more but it does so over the internet, using VoIP technology.

A Cloud PBX is a sensible choice for a small business because the installation and maintenance costs are low, upgrades are easy and non-disruptive, and cloud phone systems do not require technical knowledge to operate.

To upgrade to a VoIPer VoIP phone system today, call us free on 0800 332 266 to discuss your requirements.