Cloud PBX Phone Systems: The Ultimate Guide
What is Cloud PBX?
Cloud PBX, or Cloud Private Branch Exchange, is a telephony system that operates on the cloud infrastructure rather than traditional phone lines or on-premises hardware. It enables businesses to manage their phone system over the Internet, eliminating the need for physical hardware and allowing for greater flexibility and scalability. With Cloud PBX, all voice data, call routing, voicemail, and other telephony features are hosted and managed by a third-party service provider in the cloud. Users can access and control their phone system through a web-based interface or dedicated applications, allowing for easy configuration and management from anywhere with an internet connection.
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What is a Cloud PBX (Private Branch Exchange)
A cloud PBX (Private Branch Exchange) is a sophisticated business phone system designed to link employees to a telephone network through a managed service hosted in the cloud. Unlike traditional PBX systems that necessitated dedicated hardware installed on-site, cloud PBX consolidates management, control, integration, and connectivity with the Public Switched Telephone Network (PSTN) into the cloud environment.
Early PBX systems revolutionized call routing by introducing advanced features like call hunting, which automatically directed calls to the next available person within designated groups such as sales or support. Similarly, telephone companies offered similar services known as Centrex on their proprietary equipment. The emergence of Voice over IP (VoIP) technologies like Skype enabled phone systems to route calls over internet connections and local data networks, leading to the development of IP-PBX solutions deployable on-site or within data centers.
In today’s landscape, most modern phone systems leverage data networks for call routing, surpassing the limitations of traditional copper wires while offering cost-effective and efficient communication solutions. Traditional on-site telephone systems may be referred to as traditional PBX, legacy systems, or on-premises PBX, whereas those hosted in data centers and provided as services are termed cloud PBX, Unified Communications as a Service (UCaaS), or Contact Center as a Service (CCaaS).
Other terms that you may have heard used would be:
A hosted phone system
Hosted PBX
Virtual phone system
Virtual PBX
VoIP phone system
VoIP PBX
Online phone system
IP (Internet Protocol) PBX
Cloud PBX is a private system for businesses and often has the hardware located at a different location. The company that is providing the Cloud PBX will often host the hardware. This is great for businesses with smaller spaces because they will not need to store any equipment.
Why Choose Cloud PBX?
How could having a Cloud PBX system benefit you? You might be asking yourself, why can’t you just use your personal cell phone? There are many reasons that companies might not want to rely on their partners using cell phones to communicate. A big reason you would like to get a PBX system is to have a number that customers and coworkers could use to communicate associated with the business. Having an internal work phone system provides privacy and work efficiency for your workers.
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