Cloud-hosted PBX phone systems have become increasingly popular in recent years. The ability to add a robust phone system with all of the features and tools you need, without having to install or maintain any equipment, is particularly appealing to many small businesses. However, for some organizations, a phone system that’s totally dependent on the strength of an internet connection is not ideal.
Before you decide whether a cloud PBX system is right for your business, it is essential to understand precisely what a cloud PBX system is, how it operates, and its pros and cons.
A private branch exchange (PBX) system is a business-grade telephone network that enables communication within and outside your organization. The best business phone systems are different from residential or cell services in that they come with additional services, which typically include call conferencing, extension dialing, business-hour settings to route off-hour calls, customer waiting queues and hold music.
Cloud PBX, also known as hosted PBX or virtual PBX, is an IP-based PBX system that’s provided and accessed entirely through the internet. Cloud PBX systems host all software and data in the cloud, instead of on an on-site server as digital systems do.
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Cloud phone systems are an offshoot of digital — or on-premises — PBX systems. These systems offer the same level of functionality but differ in where the equipment is located and how it is maintained. The cost structures of the two systems also set them apart.
A digital PBX phone system is an on-site solution with all equipment stored on servers inside your business. A cloud PBX system doesn’t require physical equipment; all equipment is stored in the cloud, making it a much more flexible option.
Cloud PBX is an internet phone system in which the provider is responsible for housing the PBX equipment and providing your phone services. Your desk phone plugs into a router, and all calls, signaling and features are handled through a server at the provider’s physical location.
The PBX is responsible for routing incoming calls, enabling call transfers to other extensions and running your phone system’s communications features, such as call waiting and voicemail. Your system can be managed using a call flow, which is a collection of features and rules you assign to a given phone number.
A call flow helps you manage call routing. A call flow configuration lets you control when, where and how calls come in through your main business phone lines. You can set specific business hours for receiving calls, see caller locations, and control who receives the call. The call flow interface varies by provider, but most offer similar customization options for your hosted PBX solution.
For example, you can specify which phones you or your employees use, in what order those phones should ring (parallel or in a sequence), and the call handling rules if no one answers.
Cloud PBX phone systems bring numerous benefits to businesses, including the following:
The greatest benefit of a hosted cloud PBX system is its low cost. You can save in the following ways:
Cloud-based PBX systems offer these significant benefits regarding features and flexibility:
When you’re evaluating the business communication features you may need, consider the following helpful tools that many cloud-hosted PBX systems offer:
Phone communication is the backbone of day-to-day activities for many businesses. For this reason, reliable service is a must. A traditional landline system uses copper cabling to transfer phone calls, and these cables are vulnerable to natural disasters, vandalism and general wear and tear, all of which could result in extended outages.
In contrast, cloud PBX systems use the internet, which means your phone service is as strong as your internet connection. Because all of your information is in the cloud, your system should experience little or no downtime if there’s an issue. Geographic redundancy — when the provider has several servers in different physical locations — is one of these systems’ most common reliability measures. Each server contains identical information, so if one fails, another can take its place almost instantly.
Ensure you use one of the best business internet services so your business can stay connected amid high internet traffic or outages.
Although hosted PBX systems are popular, they are not the best option for all businesses. Here are some possible drawbacks:
In almost all cases, yes, your business should switch to cloud PBX. This is especially true if you manage a remote workforce and need a way to conduct business calls without giving away employees’ personal phone numbers. You’ll also look much more professional with business phone numbers that all start with the same area code. Plus, for customer service or sales teams, taking calls in quiet home environments instead of loud, conversation-heavy offices can be a welcome change.
There are only two cases in which you might want to avoid cloud PBX:
If you need to shore up your cybersecurity infrastructure, set up a VPN. Taking this one simple step tremendously fortifies the cybersecurity of in-person and remote teams.
The right cloud PBX system is essential for business communications. To choose the right business phone system, consider the following popular options and what they offer:
RingCentral offers three subscription tiers that range from $20 to $45 per user per month. Before you get started, RingCentral provides you with an implementation specialist who helps you choose new numbers, transfer current numbers and decide how many phones you’ll need. The company’s calling features include call forwarding, call recording, call screening, call logs, message alerts and answering rules.
Other popular tools include auto-receptionists, multilevel interactive voice response systems, voicemail, voicemail to email, and visual voicemail. Conference calls can hold up to 1,000 participants. RingCentral also offers a mobile app for iOS and Android devices. Learn more via our RingCentral review.
Ooma’s pricing depends on whether you choose an IP PBX, an analog phone option, or both. Regardless of the phone type, Ooma’s starting price is $19.95 per user per month. However, you must install some of Ooma’s on-premises equipment if you want to use analog phones. This PBX system also offers a virtual receptionist and virtual phone numbers for employees who work outside the office. Read our Ooma review for more details on what this cloud PBX vendor offers.
This cloud-hosted VoIP unified communication system uses custom pricing, so you must contact this provider for a quote. 8×8’s service has an uptime of 99.999 percent, which means it’s down for only a few minutes each year. 8×8 offers three-way calling, call forwarding, call waiting, call transferring, online voicemail, an automated attendant, ring groups and caller ID. It also integrates with popular programs such as Google Workspace, Microsoft 365 and Salesforce. Dive deeper into 8×8 via our 8×8 review.
To find out GoTo Connect’s pricing for your business, you must contact the GoTo sales team. This system provides advanced ring strategies, unlimited call queues, video conferencing, personal meeting rooms and screen sharing. The latter two features make GoTo Connect an especially powerful cloud PBX choice for remote teams. Our GoTo Connect review explains what makes this platform so remarkable.
Almost all businesses should make the switch to cloud PBX, and several high-quality platforms are available to power your transition. Utilize any free trials you encounter as you compare systems, and implement the platform you liked best. Train your team on your new software, and you’ll be off to a great start in improving your internal and inbound communications.
Max Freedman and Kiely Kuligowski contributed to this article.