What exactly is a Hosted Cloud PBX?

Last modified: March 3, 2021

Wha is a Cloud PBX?
A Cloud PBX communications software integrates with a VoIP account to route inbound and outbound calls.

A cloud PBX is a telecommunications software used to integrate a PBX system (Private Branch Exchange) with a VoIP provider in order to improve real-time communication and cut costs. (IP-PBX) uses SIP trunking networks located online on the “cloud” in order to route inbound and outbound network calls.

The business image will be reinvigorated with a communications system such as the Cloud PBX system. It may even take upon itself the image and prestige of a Fortune 500 company with its efficiency and effectiveness.

How a hosted PBX works

The main advantage of IP-PBX comes from the fact that there is no need to install any new equipment on the user’s end. The VoIP provider passes the calls through Session Initiation Protocol SIP trunks to the cloud PBX installed on the provider server-side. Web calls are then routed to the PSTN also known as the Public Switched Telephone Network at the appropriate time.

Hosted cloud PBX
The main advantage of IP-PBX comes from the fact that there is no need to install any new equipment on the user’s end.

During this step in the process, the cloud IP-PBX hosted on the provider’s end steps in. It serves as a gateway that allows communication between different networks. The PBX connects to external and internal networks via SIP trunks. It is this ability which gives business the opportunity to avoid installing any new modems or unnecessary devices.

Internal calls are handled inside the business network which helps cut down on large amounts of expenses. In order to reach another extension just pick up the handset and dial the correct extension number, the PBX system will automatically connect the call. The only extra investment will be on IP-phone devices that are capable of using the PBX switch. Overall, it is an incredibly effective method of communication for growing firms and cuts many costs.

Furthermore, a customer who dials a phone number will always be greeted by a customized IVR that can be created according to variables such as particular greetings for every department and call recordings.

If a customized greeting has been uploaded to the cloud PBX, the caller will be prompted to choose the department they would like to get in touch with.

The ACD (Automatic Calls Distributor) will redirect the caller to the department or ring group. Then all of the extensions within that department will ring either in a sequence or simultaneously according to one of the features known as “Sequential and Simultaneous Ringing”, any one of your employees can continue the conversation making sure absolutely no callers are missed guaranteeing full customer satisfaction.

Why a cloud IP-PBX is suitable for any business?

In business, a reliable communications line with your customer is vital. IP-PBX is more reliable and particularly easy to maintain compared to more traditional communications devices as it takes advantage of the VoIP to connect the phones within your business. It is for this reason that many businesses opt for IP PBX solutions for business communications and transactions.

Another perk is the lines can be easily managed, the IP-PBX provides more control over the calls received and much of the workload will be reduced. Additionally, add a Toll-Free Number configured on the PBX and the calls will be routed to the IVR menu and the customers will select where they want to be transferred.

Average pricing and costs of a Hosted PBX

Cloud PBX - Hosted auto dialer prices
Cloud PBX monthly prices

The average cost of a cloud PBX system is approximately $250 per hosted server which would be suitable for 20 employees. Actual prices for cloud PBX business phone systems can vary depending on the use of the system and the number of calls being made and received at the same time.

Items to take into consideration to calculate the cost of a cloud PBX setup are:

  • Hosted Cloud PBX rent

  • Desks and chairs.

  • Headsets.

  • Computers for softphones.

  • Physical SIP phones.

  • The professional installation is covered by most cloud PBX providers.

How to use a cloud PBX?

For starters, there are no requirements from their IT team, the cloud PBX provider tech support team handles all the necessary parts for its running and maintenance, further reducing installation costs.

IP phones or analog phones can be used to connect to the PBX through ATA converters. After the IP-PBX has been set up on a cloud server then comes the configuration of the DID’s and extensions. This is of further economical benefit as you do not have to spend money on expensive phone lines, instead, the cloud PBX solutions provider will assign phone numbers to the SIP account. Finally, the relocation of IP PBX networks is effortless, as there is no equipment that needs to be moved from place to place.

Top open source PBX software

There are many reasons why cloud-hosted PBX are becoming so popular and one of them is because of the flexibility they offer for small business and large companies.

There are multiple open source PBX systems that can potentially boost your business to a new level through their efficient business communication features. Ask your cloud PBX solutions provider how the PBX can be customized to the business needs.

These are the best open-source PBX software recommended solutions:

  • Asterisk
  • FreePBX
  • Elastix
  • FreeSwitch
  • OpenSIP
  • PBXinAFlash
  • 3CX

More benefits of cloud PBX systems

SIP Trunking benefits
SIP Trunking benefits

The money-saving benefits mentioned so far aren’t the only ones inherent in cloud PBX systems.

There is a notable reduction and mostly savings come from low prices on the international and domestic calls.

Usually, with IP PBX international calls are charged a flat monthly rate while internal calls aren’t charged at all. In non IP PBX systems, international calls usually accumulate massive international call bills but by making the switch you can potentially save thousands of dollars.

One of the main benefits of the Hosted PBX System is that there is a single access point to the entire system regardless of the location of the users.

The customer base can sometimes be increased even more by toll-free numbers and click-to-call features. These features can easily double your customer base.

The quality of service you would expect from Cloud PBX would be the equivalent of any other traditional or analog PBX systems and with regards to the reliability and security of the services have come a long way with many improvements in firewalls, anti-virus and comes with a guarantee of 99% uptime.

Disaster recovery plans are also included. The scalability, cost efficiency, and features that come with The Hosted PBX Systems make it ideal for small business ventures today and in years to come.

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