When we talk about “the cloud”, we usually mean "cloud computing". This is a branch of technology in which an infrastructure is built using app-based software that maintains data in multiple servers spread out through different locations. It allows people to perform tasks and access organizational information using the internet, and without needing to host hardware and databases at their offices.

Cloud phone systems provide a service that allows enterprise-grade telephony to be hosted in the cloud rather than relying on on-premises phones.

Cloud-based Private Branch Exchange (also known as cloud PBX, cloud-based PBX, or sometimes even virtual PBX) is a cloud telephone service that mimics traditional Private Branch Exchange while removing the inconvenience associated with it.

Companies use the PBX system (essentially a private telephone network) to manage incoming and outgoing calls to and from the organization. Originally, PBX systems were kept on company premises only. This meant that not only did businesses need to spend a lot of money on setting up and maintaining it, they also needed to invest in other communications solutions for employees who either work at different locations or whose jobs require constant mobility.

Eventually, VoIP-based PBX systems were developed. This mitigated the costs of managing and scaling traditional phone networks connected to landlines. But initially, this was still an on-premises solution that limited options for people who don't work in the office.

Cloud-based PBX was built on that original innovation. It moved the functions of on-premises PBX hardware to the cloud. This allowed workers to use their preferred internet-enabled devices with software downlaoded onto them to do their jobs, rather than being forced to stay at their desks just to use their work phone number.

Traditional PBX systems used switchboards (on-site hardware) to route incoming calls to the right user extension or department. With cloud PBX, a remotely hosted PBX system connects them to remote but secure data centers via the internet in real-time .

With a cloud-hosted system, call queue management, call transfers, IVR menus, and other important functions of a modern business telephone system like voicemail recording and call recording are all carried out on cloud servers.

One of the best things about cloud PBX is that it's flexible enough to add the enhancement or even addition of features essential to business communications today.

Examples include -

When compared to legacy communications solutions like on-premises phone systems, a cloud PBX service (especially when it's part of a wider cloud communications system) can save your business some serious money. There are four main ways choosing a unified cloud communications service can minimize your spending:

We've established that companies can get a lot of benefits out of cloud PBX. But how do they typically implement this? Here are some use cases you'll want to start out with:

If your business is still struggling because it hasn't moved on from legacy telephony systems, you need to act now. Your competitors are probably leveraging VoIP technology, cloud PBX systems, and other smart, cloud-based communications already.

The functions, features, and possibilities for savings discussed above are just some of the reasons why. But the only reason you need is really this: you don't want to be left behind.