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Cloud PBX

What is a cloud PBX?

Cloud PBX (Cloud-based Private Branch Exchange) is a virtual PBX system rooted on the internet, which automatically answers all calls and routes them to the right department or user extension. Traditionally, PBX systems are housed on-premises. These machines are big and need their own storage room. They also require significant capital investment, making them out of reach for smaller businesses.

The cloud changed all that. Cloud PBX is hosted in secure, remote data centers and is delivered through the internet. It provides the same call routing and management features of an on-premises PBX without the need for expensive hardware. The cloud PBX solution is also offered as a service on flexible plans, so smaller businesses can subscribe to it instead of investing heavily on an expensive on-premises system.

On-premises PBX

Cloud PBX

Benefits of cloud PBX

Remote business phone calls

In addition to VoIP desk phones, users can connect to business telephone numbers from different locations via a webphone or mobile app. Outgoing and incoming calls, voicemail, call transfers, and more are all accessible remotely, meaning more flexibility and – often – better customer service.

No server maintenance

Especially for small businesses, it can be difficult to maintain on-premise servers. A cloud PBX solution means easier server management via web interfaces while a phone system hosted by the provider means no server management whatsoever.

Lower costs

Apart from the savings on maintenance, hosting providers often only charge according to usage.


Most cloud phone systems use installation wizards meaning less server-side technical knowledge is required.

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