What is a cloud PBX?

A cloud PBX is a mobile PBX that is much more than just the technology that connects the company's phone calls. With a cloud-based PBX, your company gets a solution for all communication: from chat and telephony to conference calls and video.

A cloud PBX – so much more than telephony

A cloud-based PBX or hosted PBX is a modern PBX phone system that handles company telephony. Unlike the older versions, it isn’t bound to a physical PBX but provides the same telephony functions as traditional landline-based PBXs that rely on a physical hardware box. It also includes several powerful digital communication tools – some of which are only possible thanks to being cloud-based.


A modern cloud PBX comes with a great selection of communication services, from digital voice- and video calls, conference groups, SMS, and voice and video messages to voice mailboxes that transcribe all messages to emails and much more. 

How does a cloud-based PBX work?

A cloud PBX is based on software in the cloud, so it’s a virtual PBX. You can make and receive calls through it with the help of IP telephony (VoIP). It works just as if the PBX was in your office (but you don’t need a physical space for it). 


The most considerable advantage of a cloud-based PBX is the substantial difference in quality with the leading service. Your PBX provider controls maintenance and updates services regularly in the cloud, meaning you always have access to the latest technology – as soon as it is released.

Smart functions in a cloud-based PBX

A cloud PBX has smart functions to make your days proceed smoothly. Your colleagues can work more efficiently, and your customer communication will be enhanced in several ways. 


Some invaluable PBX functions:  

  • Status – Set up profiles that let you know when your colleagues are available, and they can see if you're at lunch or at the office, for example.

  • Voice and video calls – Call colleagues or set up a video conference with customers.

  • Direct messages – Strengthens internal collaboration so you can easily and quickly write to each other.

  • Referrals – With your hands full, it's hard to keep track of your phone. During busy hours, letting someone else take a call is helpful. Referrals mean you easily forward calls and connect callers to the right person.

  • Keypad selections & IVR – For hotels or cafés, using Interactive Voice Response (IVR) to set keypad options are important. By letting the caller choose between pressing 1 to book a table or 2 to book a hotel room, you and your customers save time and energy as guests easily reach the right person. And remember to record a nice welcome message for when the line is busy and no one can answer the phone.

  • Call recording – A hugely valuable help desk feature is call recording. You can easily record all conversations, which can then be used as documentation or as a training tool for new employees.

Buyer's guide  How to choose the right cloud PBX  Read the guide here

8 main advantages of a cloud PBX 

1. Easily scale up and down

Physical PBX phone systems are, by definition, limited. On-premise platforms require you to invest in hardware and fixed infrastructure upfront. The capacity is limited, and handling temporary spikes in demand is challenging. It is also difficult to scale the number of users.


A cloud-based PBX is instead based on software in the cloud, where the capacity is practically unlimited. Your provider can, therefore, always provide enough network capacity. A modern cloud PBX with a licence-based business model allows you to quickly reduce your expenses if the business needs to cut down on the number of employees. In addition, you avoid the costs for hardware that physical switchboards entail.


2. You save money

The flexible, scalable cloud PBX means you only need to pay for the capacity you need. You can easily acquire and cancel services for employees, and you pay in the form of licences that can be easily terminated, paused, or moved between users.


In addition to avoiding hefty lump sums for hardware or infrastructure, you also lower your overall costs. Cloud-based providers can keep prices down because they buy resources in bulk at significantly lower amounts and maintain their platforms more cost-effectively.


3. It’s easy to administer and user-friendly

You can adapt a cloud PBX to your specific needs, and since it’s virtual, you can make and receive calls just as if the PBX was physically present at your workplace, but without having to manage it yourself. Since a modern mobile PBX is built for self-service, you have complete control in all situations and can use your PBX stats in the best possible way.


4. Constantly updated software – no maintenance is required of you

You can sit back and relax as the software is continuously updated. The updates appear in your system automatically, and you always have access to the latest and greatest version of the software.


5. You easily integrate with other systems, such as CRM

It also becomes much easier to integrate your PBX services with other cloud-based applications you use. For example, you can connect the PBX to your calendar or integrate IP telephony, CRM, and customer service. A cloud PBX is simply a modern hub for communication and collaboration, which gives your company tangible competitive advantages.


6. It promotes internal collaboration and boosts productivity

A virtual PBX gives your team better conditions for internal collaboration, and you will see higher productivity. With the help of various functions such as chat, video conferencing, and integrations with other systems, working days will become more accessible and more efficient.


The right virtual PBX makes it easy to manage your internal communication. Customise your availability, get easy access to colleagues’ contact details, and chat with co-workers.


7. You offer better customer service

You also get happier customers! How? Well, with smart referrals and interactive voice response (IVR), your customers get faster and better help and end up directly with the right person. And if no one can take the call, you easily record and activate the correct voice response message that tells callers what is going on.


8. Remote work is facilitated

Because a cloud PBX is mobile, you and your employees can answer the phone and forward calls, whether you’re on the move, working from home, or standing in line for lunch. A virtual PBX makes it easy to work remotely or on the go. A cloud PBX gives you freedom, as all functions are available on your mobile. You can change opening hours, adjust availability, and forward calls. It simplifies your workday wherever you are – whether from your home office or on the train.


A cloud PBX is a necessity for businesses of all sizes today. You’ll be able to work flexibly and efficiently, enhance the customer experience and use many clever features to improve operations. It also means you are in complete control over your telephony. You decide what number is shown when you’re calling someone and what number you can be reached at. And if you’re away working, you can, in advance, set what calls you want to take and what should be forwarded to a colleague. The possibilities are close to endless.

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