What is a cloud phone system?

A cloud-based phone system is a business communications solution that is hosted and maintained in the provider’s data centers—not at your office—and is delivered through your internet connection. It features a hosted PBX capability, which has the same routing and call management features of a traditional PBX while using voice over IP (VoIP) to facilitate calls over the internet. It also has other capabilities that traditional office phone systems don’t or can’t offer at affordable prices, like long-distance calling. This cloud solution is often offered as a service, so smaller businesses are able to subscribe to it instead of investing heavily on an expensive on-premise system.

Cloud-based phone system vs on-premise office phone systems

The cloud phone system changed the way companies manage calls and even do business.

Thanks to the system being hosted remotely, companies are able to enjoy the myriad of benefits and advantages that a traditional on-premise PBX setup fails to offer.

Traditional on-premise phone systems

  • Expensive up-front costs for big and bulky on-site hardware
  • Expensive and complex implementation
  • Service and hardware upgrades requiring additional fees
  • New extensions needing new cabling and installation
  • Specially trained manpower required for maintenance
  • Drawn out implementation of service change requests

Cloud-hosted phone systems

  • No expensive, bulky hardware that require a dedicated room
  • Quick installation and setup—it just takes minutes
  • Works with IP phones, desk computers, and mobile devices
  • No cables needed to install; uses virtual phone extensions
  • Updates and upgrades are automatically rolled out to all subscribers
  • Does not require maintenance from dedicated personnel
  • Changes to the account can be done instantly

The limitations of traditional on-premise PBX phone systems

Private branch exchange (PBX) is a type of telephone network companies use to route calls to departments or phone extensions. Traditionally, the system itself is housed on office premises. The system machines are cumbersome and require their own storage room as well as periodic repairs and maintenance. In the past, only large companies had the resources to install and manage this kind of setup for their office phones. This changed with the emergence of cloud technology.

CLOUD           VS.           Traditional