In recent years, cloud-hosted PBX phone systems have grown in popularity. Many small businesses find it incredibly enticing to add a powerful phone system with all the required features and capabilities without having to install or maintain any equipment. It may not be optimal for some organizations to have a phone system that depends solely on the speed of an internet connection. It’s crucial to comprehend precisely what a cloud PBX system is, how it works, and its benefits and drawbacks before choosing the best option for your company.
What is Cloud PBX?

A business-grade phone network called a private branch exchange (PBX) allows communication both inside and outside your company. A business phone system differs from residential or mobile services in that it offers extra features, such as call conferencing, extension dialling, business-hour settings to divert calls during non-business hours, customer waiting queues, and hold music.
The IP-based PBX solution, known as cloud PBX, often called hosted PBX or virtual PBX, is entirely accessible and offered over the internet. Cloud PBX system hosts all software and data in the cloud instead of digital systems, which host software on a server.
How does Cloud PBX Work?
In a cloud PBX system, your provider is responsible for hosting the PBX hardware and offering your phone services. Any calls, signals, and features are handled through a server at the provider’s physical location by plugging your desk phone into a router.
The PBX manages your phone system’s communication functions, including call waiting and voicemail, call routing, call transfers to other extensions, and call waiting. A call flow, a set of features and guidelines you attach to a specific phone number, can be used to administer your system.
Benefits of Cloud PBX

Low Cost
The inexpensive cost of a hosted cloud PBX system is its main advantage. You don’t need to buy any physical equipment because a hosted PBX system is a service; the only gadgets you could require are VoIP-capable desktop phones.
You also can forward all calls to mobile devices owned by employees. You also save money on installation and maintenance expenses because there is less equipment. Your provider hosts and maintains all of your services and features in the cloud, so the price of your phone service includes ongoing upgrades and upkeep. Most carriers provide online hubs for managing your phone lines, updates, and maintenance requirements.
Features and Flexibility
Systems located on the cloud have many advantages in terms of features and flexibility. Being reachable anywhere and anytime has become a significant business objective as the globe swings increasingly toward flexible and unconventional working settings. Suppose you’re considering moving your business to a new location. In that case, you won’t have to worry about transporting any equipment because a hosted solution enables you to conduct business conversations via your smartphone or computer as long as you have an internet connection (except for the phones).
Your staff members can change the phone settings to suit their needs, such as routing calls to both their desk phone and computer or to both their desk phone and mobile phone.
Conclusion
Because cloud PBX systems rely on the internet, the quality of your phone service depends on your internet connection speed. One of these systems’ most popular reliability methods is geographic redundancy, when the supplier has numerous servers across various physical locations. Since the information on each server is similar, another can nearly immediately take its place if one fails.