6 min read

Why cloud pbx beats traditional pbx

Jul 6, 2020 11:30:17 AM

A sales agent uses a cloud pbx system to talk to customers

It happens in every industry. Once in a while an extraordinarily disruptive technology comes along, and things are never the same again. 

In the constantly innovating telecommunications industry, the great disruptor is the cloud based PBX solution.

Simply put, the modern cloud hosted PBX is here to replace traditional PBX solutions. 

Part of the reason is that these new cloud services offer features traditional telephony can't compete with—and they bring business advantage the old tools could never deliver.

In fact, the telephony game is so changed that even maintaining an on-premise PBX can harm your customer service. 

In this post we’re explaining why.

Let’s jump right in.



What is a traditional PBX phone system?

The  traditional PBX phone system is the conventional phone system that has been used within companies and organisations for decades. Users of a PBX phone system can make phone calls both within their company or organisation and to the outside world. 

The term PBX stands for Private Branch Exchange, which is a system that is connected through an exchange network. The traditional system is on-premise PBX, meaning that it’s physically installed at the business location, usually in a computer equipment room or phone closet.

The downside to traditional or even analog PBX is that it connects to plain old telephone lines (POTS) that pre-date the internet. These systems don’t have the many features of modern-day phone systems such as voicemail-to-email, cross-platform integration and they can’t deliver high definition voice calls.

Cloud hosted PBX system: The modern alternative 

A cloud hosted PBX is a cloud-based phone system provided and accessed entirely through the internet. This telephone exchange system is built, delivered and managed by a third party service provider. Cloud hosted PBX may also be referred to as hosted PBX or virtual PBX. 

Because a cloud PBX leverages the internet, it is capable of high definition voice calls and a number of other sophisticated features, such as intelligent call routing, unified messaging (voicemail-to-email) and integration with other unified communications and CRM platforms.

With a cloud hosted PBX there is no more need for on-premise equipment—it includes full call center functionality while all data lives in the cloud. A cloud hosted PBX with VoIP technology adapts to the needs of businesses of any size and allows employees to be available from any device regardless of location. 

VoIP is an acronym for Voice over Internet Protocol, meaning phone service over the internet. VoIP PBXs make certain things easy that are difficult to impossible with traditional networks and have huge advantages. 

So, what are the advantages of cloud PBX? Let's count them:


1. Cloud PBX means Lower costs AND bigger savings

A cloud hosted PBX solution can lower costs significantly, especially when compared to a conventional on-premise PBX. Cloud PBX phone systems have lower set-up costs because they don’t require large upfront investments to purchase and set up servers and necessary physical hardware.  

Because the PBX is hosted and managed by a third party provider you don’t have to hire and train technical personnel to operate and maintain the service. 

The month-to-month service charge is not only consistent but also much lower as expensive traditional phone lines are replaced by combining voice and data traffic on a single network. 

Since VoIP routes calls through the internet, it doesn’t matter where the call originated from or what its destination is, which enables free internal calls and makes agreements with operators abroad obsolete. 



Cloud PBX cost savings 

With hosted PBX there is a savings potential of monthly 50 - 70% compared to conventional telephone systems. Cost savings for on-premise hardware and maintenance are 100%. This is because cloud PBX requires virtually no installation charges and no ongoing maintenance costs.

Forrester conducted an economic impact study to evaluate the potential financial impact of Microsoft 365 Cloud Voice on their organisations. In the particular case of a composite organisation with 5000 users the telecommunications usage cost savings over three years totals $1.0 million. 

Forrester concluded that Cloud Voice has the following three-year financial impact: $9.5M in benefits vs costs of $2.6M, resulting in a net present value (NPV) of $6.9M and an ROI of 261%. 


How much does a cloud PBX system cost? 


Cloud PBX pricing depends on the number of users and features your company needs. Benemen cloud hosted PBX is charged on a monthly subscription basis where you pay per user, also known as an extension or seat. 

Pricing packages vary in terms of features that are included, like visual voicemail end user call recording and specific reporting. Top tier options include a number of advanced functions like integration with CRM systems such as Salesforce and Microsoft Dynamics 365.

If you’d like to get a clear idea of how much your organisation can benefit from Benemen Cloud hosted PBX, we are happy to schedule a free demo with a custom quote. 



2. easy and flexible Set up

It’s incredibly easy to get started with a cloud hosted PBX. All you need is a reliable and fast internet connection, VoIP-enabled devices and a data network that can handle additional voice traffic and you’re good to go! 

That’s a huge step in terms of setup and configuration of the traditional systems that required wiring, hardware equipment, system upgrades, on-premise maintenance by a technician and so much more. You can be up and running with hosted PBX in just a few days.

With a cloud PBX system your business can achieve flexible scalability because new features can be added immediately without having to install new hardware. A single cloud PBX system can expand from 10 to more than 100 users without having to add new features.  


3. Cloud PBX Enhanced functionalities boost productivity

With numerous functions, a cloud PBX brings undreamt-of possibilities to your organisation. Options such as help desk and call center functionalities, database integration and remote maintenance allow your employees to enjoy an efficient and flexible working day.  

Functions like call recording, video conferencing, instant messaging and data and screen sharing transform your business communication and improve employee productivity and performance. 

Through unified communications, all communication channels—including your cloud PBX, can be combined which offers enormous advantages for small and large companies


4. Cloud backups ensure business continuity

Having an on-premise PBX could hurt customer service. A study by Harris Interactive found, that 89% of customers have switched to doing business with a competitor following a poor customer experience. If a customer can’t reach you or is on hold for too long they will likely get frustrated with your company.

The traditional PBX is dependent on the centralized device that’s installed in the user’s office. Nobody likes to think about disasters, but if hardware fails, your entire PBX will no longer be working, interrupting your entire business communications. 

Cloud PBX ensures that you retain uninterrupted communications with your customer since you’re working with a software rather than a piece of equipment. The crucial hardware is stored in secure remote data centers and the cloud is much faster and safer in terms of disaster recovery. 

Even if your office should be physically damaged by a fire, flood or earthquake, calls can quickly be forwarded through other phones for continuous service. The future-proof cloud based telephone system is always up to date thanks to automatic software updates. 

5. Stay connected and make calls from anywhere

Since VoIP phone systems give the user a virtualized experience, there is no reason that employees have to be limited to one location. As long as you have an internet connection you can access the cloud PBX and its features from anywhere.

A cloud hosted PBX solution allows user to make calls on their desk phones, desktop software apps, and mobile phones. This is a huge advantage of traditional solutions, allowing users to take their device and work productively from anywhere. 


Situations like COVID-19 requiring remote work make virtual PBX even more advantageous

Luona is a company that offers social and health counseling. When counsellors could no longer see clients in person due to COVID-19 the company sought solutions to help maintain the ability to operate and provide counselling and advice. 

Suvi Salonen, Business Director of Luona, reports: "We took a range of measures in a short time, setting up a remote service together with Benemen. We trained our staff, who have taken an amazing attitude to securing our services by adapting to the requirements of the current operating environment."

Find out how a cloud hosted PBX solution can work for you 

The best solution for your business is a phone system that fits your needs, keeps your phone lines open and helps manage costs effectively long-term.

Contact us today or book a free demo to see how implementing a cloud PBX solution can work for you. 




Written by Benemen


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