What is a Cloud Hosted PBX?

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Browsing your options for potential Voice over Internet Protocol (VoIP) solutions providers undoubtedly leads you to stumble across phrases such as “Cloud PBX,” “Virtual PBX,” “Cloud-Hosted PBX,” or another variation of the same idea. What does “Cloud-Hosted PBX” mean, and how do you know if it’s right for you?

Understanding Old Systems

PBX stands for “private branch exchange,” or a private telephone network used within a company. Your current PBX probably uses telephone lines, unless you have a digital telephony system other than a VoIP solution. Traditional PBX systems operate independently from the public switched telephone network (PSTN), giving companies their own private networks. At the time, this was the best option for businesses, since it offered free calls within their networks.

VoIP uses the Internet as its infrastructure, completely replacing the need for a telephone infrastructure. This allows businesses to dramatically reduce costs and enjoy greater communication flexibility. It eliminates the need for dedicated telephone lines by using the data cables you connect to your computer. You can use one PBX to connect several devices within the same network.

Hosted VoIP solutions are a popular choice for businesses that want to integrate VoIP for less money and more flexibility than managed, or on-premises VoIP solutions. Hosted PBX means your VoIP provider manages and maintains your system using its own servers, hardware, and software. This is done off-site in your provider’s own facility. The benefits of hosted VoIP already make it attractive, but cloud-hosted PBX takes telecom solutions a step farther.

The Benefits of Cloud-Hosted PBX

Cloud-hosted PBX uses dozens of servers all over the world to host a VoIP solution instead of a single warehouse. The benefits of using the cloud for VoIP include easier scalability and upgrades as technology continues to advance. As VoIP solutions evolve, your business will already have access to the newest trends through the cloud. If the future of business is the Internet, taking VoIP solutions into the cloud is clearly the best solution.

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