What is a Cloud PBX?

Telecommunication systems have various technical terms that for an average person,might seem to be overwhelming. But being aware of the different services they offer is imperative if you want to level up your business communication system.

In this article, we will discuss various terms such as Cloud PBX, Hosted PBX definition, Virtual PBX definition among other things. But our focus is on Cloud PBX features and how your business will reap the benefits of having this kind of service.

What is a Cloud PBX?

So what is Cloud PBX? There is a vividly detailed definition about it so an average person may be able to comprehend. In simple layman’s terms, Cloud PBX is a virtual communication system that gives a secure and dependable phone system for your business via the Internet.

How Does It Work?

Cloud PBX effectively works by connecting all of your communication devices to your phone system through an Internet connection. Since Cloud PBX is a part of the much broader Virtual PBX, its servers are globally distributed. It only means that Cloud PBX is reliable enough because even if one server location accidentally goes down, there are still others to support.

You must be aware of the fact that all cloud technologies depend entirely on an Internet connection. Therefore, Cloud PBX specifically utilizes Voice over Internet Protocol (VoIP) technology for incoming and outgoing calls. VoIP technology then uses the Internet to route phone calls using Session Initiation Protocol (SIP) to set up calls between communication devices.

You might ask yourself, “What is Cloud-based VoIP?” To make it more precise to you about this term, a Cloud-based VoIP means are hosted services that house all the phone hardware systems offsite. It also keeps a record of your data and stores or transfers them over the Internet, instead of computer or hardware settings. That is the simplest definition to avoid confusion on your part.

Cloud PBX versus Hosted PBX

Cloud PBX and Hosted PBX are terms that are being used interchangeably. Although these two have almost the same thing in common such as both PBX software is hosted offsite by a service provider, and both deploy their services through the Internet, still, there are some differences to be aware of.

So what is a Hosted PBX? Simply put, a Hosted PBX refers to service being offered to users by a provider that hosts all the equipment or hardware from a separate location. It means that the service is delivered through the Internet.

Cloud PBX, on the other hand, refers to hosted services that are delivered through the Internet also. Sounds almost identical, right? But you should not be confused.

In general, cloud services are built to increase interconnection and expand the range of users’ collaboration. With a Hosted PBX, service is trimmed or fitted to a specific size. It only means all features are identical and uniform. Whereas with Cloud PBX, it is more scalable that results in more features that are more customizable on a more personal basis.

You need to know the system before adopting it as your preferred communication system. As a sort of example, Cloud PBX service is more preferred for smaller-scale businesses or residential use, since it would allow better growth and customization. With Hosted PBX, large scale businesses can work well by creating a uniform service among employees.

Cloud PBX Advantages and Disadvantages

Cloud PBX systems are the latest innovations in PBX technology. However, just like other telecommunication systems, Cloud PBX has its advantages and disadvantages. It is a good thing to be familiar with them so you can decide wisely.

Cloud PBX Advantages

  • Low-Cost – The biggest advantage of having this kind of telecommunication system is its low-cost feature. If you would try to compare Cloud PBX with other PBX systems such as the traditional one, you will notice that Cloud PBX is so cost-effective considering its advanced features that the traditional PBX does not offer.
  • Scalability – When we talk about scalability, Cloud PBX certainly can scale up or down in proportion to your business capacity and requirements. If your business demands increases or decreases, Cloud PBX can manageably meet your usage capacity.
  • Flexibility – Cloud PBX is strategically designed to empower you to have a connection across the world using your preferred telecommunication devices such as smartphones, or even personal computers. You can easily assign remote works for your employees if it is needed. Thus making the best of your time to enhance your local and international presence for your clients and prospective customers.
  • Reliability – Running a business having the backup of a reliable telecommunication system. And since Cloud PBX “lives in the cloud”, you have nothing to worry about downtime or hardware/equipment repairs. All these things are being taken care of by your service provider.

Cloud PBX Disadvantages

  • Call Quality – This is one of the obvious disadvantages of the Cloud PBX system. Since it is being hosted over the Internet and it relies solely on a strong Internet connection. If you are having a really slow Internet connection in your business, there is a possibility that calls would suddenly drop or have low-quality conversations.
  • Security – It can be less secure than you think. Even though virtual PBX providers provide encryption for all your calls, a reduced level of security might be possible. Concerning this matter, anyone seeking this type of unified communications should be very careful about the security practices the service provider has.

By careful analysis, you could be certain that the advantages that you can get from a Cloud PBX system are far more prevailing than its advantages. To further give you the benefits of acquiring this communication system in your business, listed below are the features that you can experience with a Cloud PBX.

Cloud PBX Features

For sure, the Cloud PBX system has a lot of features where your business can benefit. Among them are the following:

  • Call Recording – This feature is very important in monitoring every call that takes place inside and out of your business. It provides you the necessary tool for telling your employees about their performance that needs further improvement. It means that monitoring calls are made for quality assurance.
  • Virtual Attendant (IVR) – Auto-attendant or Interactive Voice Recordings (IVR) allows your customers or callers to choose their preferred destination by merely basing on options that they will hear through voice recordings. A very smart way of attending calls without human intervention. This also gives you a great saving because you don’t need to hire someone just answering incoming calls.
  • Call Groups – This feature is very important if you don’t want to miss any single incoming calls. Call Groups allow several phones to ring at the same time if there is an incoming call. This gives you an assurance that anyone in your department can answer the call as quickly as possible and deal with the concern of the caller.
  • Voicemail Transcription – This feature is a MUST if you are the kind of individual on the go. Voicemail Transcription allows you to read any voicemail on your inbox. That is, they are transcribed in word format so you can view it even if you are in the middle of a conference or meeting.
  • Reporting and Analytics – Your internal and external call activity needs improved decision-making. This indispensable tool provides a piece of deep-layered information to improve the performance of your employees, sales campaigns, as well as manage your customer experience
  • Online User-Interface – You tend to hear this term “User-Interface”, and you are wondering what it is all about. Well, it is where all the configurations and settings are made. Though this may sound complex to you, the point is Cloud PBX makes it easy for you and your employees to use it as if you are doing the normal things without any complications.
  • Call Queues – This is very simple to comprehend. Cloud PBX can place your inbound calls from customers in a queue so your employees or agents would be able to attend to those calls with ease and in a very organized way.
  • Live Call Monitoring – Live Call Monitoring service is a valuable tool to ensure quality and effectiveness during online training and compliance. It is also very effective in joining in on calls and relaying messages to colleagues while they are engaged on the phone. And as the boss of your business, you must keep tabs on the quality of your voice calls and have the ability to enhance your customers’ experience.
  • Call Whisper – Call Whisper is a straight-forward concept that provides an employee or call center agent a voice recording or in a form of message that would give him the idea of which advertising campaign a prospect is responding to.
  • Call Barge – This may come as a surprise to you if you are an average user of a traditional PBX phone system. Call barging allows you to listen to live calls between an employee or agent and the customer. Also known as “silent call monitoring”, it allows you to barge into the call to speak to your agent or employee, and to the client itself. This is a very effective tool in de-escalating an issue with an irate customer.
  • Automated Call Distribution – Automatic Call Distribution allows you to effectively and efficiently distribute incoming calls to your employees with the required specific skills. And since it distributes inbound calls to specific individuals of your organization, you are confident enough that their concerns or issues will be addressed promptly and properly.

Final Words

As our technology evolves, the emergence of state-of-the-art communication systems keeps its pace to address the need for effective and secure phone service. With Cloud PBX, the mentioned value-added features would surely bring your business forward and ahead of your competitors.

Now that you are fully aware of what the Cloud PBX phone system is all about, it is time to consider your business of leveling up. As said, Cloud PBX will give you the freedom to build a local and international presence, as well as answering incoming calls promptly. By doing this, you are psychologically building trust with your customers, knowing that they can depend on you and their queries are answered instantly.

Telnum can definitely help you in assessing your business’ telecommunication needs. With Telnum’s vast knowledge and expertise when it comes to the telephony system, you can be assured of an effective communication system that suits your company’s capability.

If you are still confused on what telecommunication service your business should be having, don’t hesitate to give us a call and we will be more than happy to assist you in setting up the appropriate communication service that best fits your business!

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