Cloud PBX Defined

What is a Cloud PBX aka Hosted VoIP?

A cloud PBX defined.Hosted VoIP, hosted PBX, also known as a cloud-based phone service (Cloud PBX) is one in which the IP-PBX is located with the provider in their data center who then provides the technology and connections to make the communications. Phones within the customer's business network connect to the hosted IP-PBX which handles all the signaling, calls and features. Maintenance of the IP-PBX server is completely done by the provider.

Cloud PBX diagram showing internet cloud and phones.Typically charging a monthly fee that is dependent on the number of users (phones or seats), most providers offer plans that may include a number of call minutes, as well as a packaged list of included features. Some advanced features may incur an additional cost increasing the monthly fee. Services can be added or deleted using the customer's web based account and accounts can be created quickly. Phone numbers, including toll free numbers can be purchased and then assigned to the customer.

Cloud PBX systems are easy to mange and use.Hosted VoIP providers usually offer a service which include many business phone system features and future development of new features is totally dependent on the provider. Implementation by the customer is quick and relatively easy and would require less in-house resources than an on-premise IP-PBX system. Additionally, cloud PBX providers have designed the user's interface for easy self management of their services and configurations.

Pros of a Cloud PBX Solution:

  • Lower setup and installation costs. No server maintenance costs.
  • Increasing or adding services is quick and easy.
  • The user control panel interface is well designed for intuitive configuration changes.
  • Software patches and updates are done by the provider.
  • No need for an IT professional to take care of the phone system.
  • Provider assistance and customer support. Businesses can manage the phone system themselves.
  • The provider keeps technology up to date.


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Top Hosted VoIP Provider Companies   Our Pick for the Best Hosted VoIP