What Is A Cloud PBX?

BY:

May 12, 2016

You may have been told that your business needs a cloud PBX. But what is a cloud PBX exactly, and how does it work? Undoubtedly, you know what a PBX system is. It routes calls and handles the basics when it comes to phone calls. It provides a way for you to field as many calls from your customers as your system will allow. Now, suppose we told you that with a Cloud PBX you get more functionality, less downtime, and more reporting information. Sounds good, doesn’t it?

Cloud PBX Phones

What a Cloud PBX Is

A PBX is an old telephony term for a phone switch called a Public Exchange Branch. Old-style PBXs were used to hook multiple lines into an office with a limited number of phone numbers. Think about a toll-free number going to a single switchboard or office assistant.

Now, let’s look at Cloud PBXs. Cloud PBXs and VoIP were simply made for each other — or should have been. Just as VoIP uses the Internet instead of traditional phone lines to field calls, Cloud PBXs are virtual PBXs that exist on computer servers somewhere on the Internet. Because they use cloud technology, everything is redundant, scalable, and reliable. 

Cloud PBX Advantages Over Standard PBXs

Using VoIP, you can choose a bank of phone numbers with area codes from anywhere, you can monitor your call volume and analyze statistics, you can add phone lines without the hassle of needing to upgrade, and you can record calls with ease. Because you are using cloud technology, you only pay for the services you need. You never have to worry about software or hardware upgrades.

With physical PBXs, you could have downtime. If the actual PBX had a problem, it becomes a single point of failure. You could take down your entire phone bank for a long time. And each minute, let alone hours or days, is a minute of lost time. That’s time that your salespeople aren’t selling or your phone support isn’t helping customers. We think that Cloud PBXs are terrific. Furthermore, they’re cheaper than the standard PBX.

But Isn’t the Cloud New?

You may be worried about security and robustness when it comes to using applications in the cloud, but we feel this isn’t an issue. The good news is this is not new technology, per se, just a newer application of it. Companies started using clouds in the mid 1990s to ensure reliability and 24/7 up time. Some companies such as telephone companies, banks, and other companies that dealt with real time data and couldn’t afford to have downtime used the cloud to ensure their systems were always up.

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