A cloud PBX system is a based on
cloud computing technology, where data is stored and transferred over the Internet, rather than on a computer or piece of hardware that an end-user owns.
Cloud technology that has been around for many years, but has only more recently become popular for consumer use with the introduction of programs like MobileMe and the iCloud, both consumer-based cloud computing technologies.
History of the Cloud
Cloud technology has many applications for businesses and consumers. In the mid-1990’s, companies that had previously used “point-to-point” data circuits to move and store data began to use a cloud technology instead as they found that this was a cheaper way to do the same tasks, and made more efficient use of bandwidth.
The term “cloud” likely refers to the drawings of clouds used by its program developers to represent the abstraction of the Internet. The symbol was used to mark the division between responsibilities of the service provider company and the responsibilities of the customer.
Cloud technology means that you can access the data and services of your cloud from any device connected to the Internet. So, with a cloud PBX provider, you can use all of the standard PBX features without the need of an actual PBX in your home or office.
What is PBX? What is Cloud PBX?
PBX, or public branch exchange, is the name used to refer to the technology that any given telephone provider uses to route calls. Originally, a PBX was a large unit of hardware that had to be stored on site and operated by hand. These machines could be very costly for a company, as they were large, needed special storage facilities, needed regular repairs, and had to be operated manually.
Companies with multiple phones and many employees can’t function properly without some kind of PBX technology in the office. In more recent years, a PBX could be made to operate automatically, without an operator, but even these devices were expensive and complicated (the cheapest are around $400). And if a business needed to move to a new location, or add or remove a phone line, the process could be very costly and time consuming.
Initial cost and upkeep of traditional PBX vs cloud PBX
- Traditional PBX: About $5,000 including cost of installation and new equipment fees. $10.00/hour for an operator. If managed without an operator, can still run to around $300 or $400 for upkeep and Internet connection.
- RingCentral Virtual PBX: $19.99/month plus $0.049/additional minute
- Vocalocity Virtual Extension:$14.99/month plus $0.03/additional minute
- Switchvox Cloud by Digium: $29/month, unlimited minutes and all UC features included
Cloud PBX gives you access to PBX capabilities without the need for complicated and expensive equipment. Cloud PBX is a kind of
hosted PBX or virtual PBX, meaning that all of the routing services are performed by your VoIP provider, rather than by an employee managing a PBX system in your office.
How does it work?
All cloud technologies are dependent on the Internet. A cloud PBX works by connecting to your IP, or Internet phone, for its internet connection. So, you must have a VoIP or other IP system in place in your office in order to use a cloud PBX. Many VoIP service providers, like the following, will include their PBX options at little or no extra charge:
- RingCentral (included in some plans)
- MondoTalk (included in all plans)
- Vocalocity (available as a free feature on all plans)
- Jive Communications (available as a free feature)
- M5 Networks (included)
You can access your cloud PBX with a personalized account from any device that can run the Cloud PBX’s interface software. This means that you can access your cloud PBX from any Internet-enabled location or device that you have certified for use with your system. Usually, this is just a matter of logging in with a password or security question from that device. ...
