What is a Cloud PBX, Hosted PBX system?

A Cloud PBX or Hosted PBX System is a virtual telephone switching system PBX (Private Branch Exchange) that is located on a telecommunication service providers voice server, which is located off-site from the customers physical premises.

Cloud PBX, Hosted PBX Systems use VoIP telephone, phones and VoIP telephone, phone lines to make, receive and transfer phone calls via an internet connection as the means of voice communication.

In short a Cloud PBX, Hosted PBX System offers all the telephone switching functions which a traditional on-premises PBX System would offer, and more.

A Hosted PBX System is also called a Cloud PBX or a Virtual PBX.

Because the Cloud PBX, Hosted PBX System does not require the telephone switching hardware on-site at the customers premises it drastically reduces the initial capital outlay when purchasing a PBX System. It also drastically reduces ongoing maintenance and labour costs.

How does a Cloud PBX, Hosted PBX system work?

A Cloud PBX, Hosted PBX System uses IP (Internet Protocol) technology to allow VoIP (Voice over Internet Protocol) communication and telephone switching functions over the internet.

In more technical terms VoIP is the technology that allows analogue audio signals, such as those you hear when you speak on the phone, to be converted into packets of digital data that can be transmitted via the internet.

An off-site Cloud PBX, Hosted PBX System works by allowing a business to transfer phone calls between the VoIP extension telephone, phone handsets at their offices.

One of the best functions of a Cloud PBX, Hosted PBX System is that it allows a business to make phone calls and transfer phone calls between offices and branches at no additional call costs.

An off-site Cloud PBX, Hosted PBX System also has the following additional functionalities which work as follows:

Voicemail - This function works by allowing callers to leave an after hours message.
IVR welcome message feature - This function works by allowing callers calling in to Press 1 for sales, Press 2 for accounts.
Music on hold - This function works by playing music when a phone call is put on hold.
Forward call - This function works by divert incoming calls to a mobile phone when out of the office.
Mobile smartphone VoIP extension apps - This function works by allowing you to receive and make phone calls on your office phone extension, from your cellphone.

The Cloud PBX, Hosted PBX System also works with lower priced telephone, phone line rentals that are much cheaper than traditional PSTN telephone lines.

A Cloud PBX, Hosted PBX System requires three main components in order for it to work; the Hosted PBX from your service provider, a VoIP phone and a good reliable internet connection.

Your telecommunications service provider will offer the Cloud PBX, Hosted PBX System on a monthly subscription basis.

They will also provide you with a VoIP telephone, phone or multiple VoIP telephone, phone extension handsets which are available on a monthly rental or once off outright purchase option.

Lastly a good reliable internet connection which can also be supplied by your telecommunications telephone provider, if you do not already have one.

Diagram explaining how a Cloud PBX, Hosted PBX System works with the integrated VoIP components and internet connection.

Difference between a Cloud PBX, Hosted PBX system vs an on-site PBX

Both these types of PABX Systems have advantages and disadvantages and we are going to explain the differences below in more detail.

The main difference between a Cloud PBX, Hosted PBX System and an on-premises PBX System is that the Cloud PBX, Hosted PBX System is a virtual telephone switching system located on your telecommunication service providers voice server, compared to an on-premises PBX System which is the physical telephony switching hardware located at the customers physical premises.

Both PBX systems essentially allow a business to make, receive and transfer telephone, phone calls.

In terms of cost, a Cloud PBX, Hosted PBX System has a much lower financial outlay compared to a traditional on-site PBX System.

Maintenance and upkeep costs on a Cloud PBX, Hosted PBX System are covered by your telephony service provider, whereas these costs would be your companies responsibility with an on-premises PBX System.

As the Cloud PBX, Hosted PBX System is managed by your telephone service provider, it eliminates the need for your company to have to invest in telephone software, telephone hardware, training and day-to-day ongoing maintenance. Your service provider maintains your complete PBX System.

A Cloud PBX, Hosted PBX System also gives a business much more flexibility with quick and easy upgrades, and also the convenience for staff to work from home or remotely from the office compared to a traditional on-site PBX System.

The programming functions on an on-site PBX System are also much more complicated compared to the quick and easy programming menu on a Cloud PBX, Hosted PBX System.

An on-premises PBX System can also be damaged from power surges, whereas the Cloud PBX, Hosted PBX System is hosted in a secure, power controlled environment which protects it from power surge damage.

On-premises PBX System equipment also needs to be powered by a Uninterrupted power supply (UPS) when the main electrical power feed is off, where a Cloud PBX, Hosted PBX System works without any power interruption in your service providers secure, power controlled environment.

On-premises PBX System equipment also needs to be insured through an insurance company for lightning, theft, power and all risk damage, which also increases the monthly cost compared to a Cloud PBX, Hosted PBX System that does not require a company to pay for any all risk insurance.

Best benefits of Cloud PBX, Hosted PBX systems

The are many benefits gained from using a Cloud PBX, Hosted PBX System but the main advantage is that there are lower initial outlay costs.

This means that even small start-up business's can afford to use a Cloud PBX, Hosted PBX System for their office voice communications at minimal cost.

Below are some more advantages:

Lower initial cost outlay. Much less upfront costs are required, thus allowing all businesses the ability to afford a Cloud PBX, Hosted PBX System for their office telephony communications.
Month to month rental service. Cancel at any time. No lengthy contracts that will tie a business down with a five year rental contract.
Reduced recurring maintenance and serving costs. We cover all the maintenance costs on our Cloud PBX or Hosted PBX System.
Fast and efficient set-up and installation. A Cloud PBX, Hosted PBX System is very easy to set up and manage compared to a traditional PBX System. No lengthy installation lead times.
Quick and easy changes. We can make any change that you would require on the functionality of your incoming telephone calls, diverting without having to wait for a technician to be dispatched to your offices.
Flexibility. Upgrade to a bigger Cloud PBX, Hosted PBX System as your business grows or scale down when your business structure changes. No penalties, no contracts and no outstanding financial settlements.
Reliability and back up support. Attending to faults on a Cloud PBX, Hosted PBX System is handled quick and efficiently by our trained in-house customer support specialists. Five star service and support.

Best features of Cloud PBX, Hosted PBX Systems

A Cloud PBX, Hosted PBX System has many telephony communication features, below are some of the most useful features:

Virtual telephone, phone number - Port your existing Telkom phone number over to our VoIP telephone, phone lines and have the advantage of being able to use your virtual business phone number anywhere in South Africa, instead of being dependent on a landline in the office. This means you can have access to your office incoming calls at any time when you are not in the office, when working remotely or during holiday periods.
Remote working - Allow your employees to work from home or from a remote location when attending to business out of the office. Make, receive and transfer calls with our remote mobile smartphone app extension that works as a virtual VoIP extension on a cellphone.
Flexibility - Move your office PBX System at a fraction of the cost of what a traditional PBX System re-installation would cost.
Flexibility - Keep your same phone, telephone numbers when you relocate your office.
Flexibility - Connect multiple offices onto one centralised Hosted PABX, Hosted PABX System.

If you are considering a Cloud PBX, Hosted PBX System for your business office communications, this detailed guide provides you with everything you need to know how to get started.

Cloud PBX, Hosted PBX System VoIP telephone, phone hardware

A Cloud PBX, Hosted PBX System can work with a wide range of non-propriety VoIP IP desk telephones, phones.
Below are some VoIP IP desk telephone, phone models that are fully compatible to work with a Cloud PBX, Hosted PBX System:

Grandstream GRP2615 VoIP Switchboard Handset That Works On A Cloud PBX, Hosted PBX System

Grandstream GRP2602 VoIP Extension Handset That Works On A Cloud PBX, Hosted PBX System

Grandstream DP722 VoIP DECT Extension Handset That Works On A Cloud PBX, Hosted PBX System

Cloud PBX, Hosted PBX System pricing

Below is a breakdown explaining how the pricing structure of a Cloud PBX, Hosted PBX System works:

All pricing indicated is exclusive of VAT & subject to change.