What is a Cloud PBX?

A cloud PBX is a business phone system that is hosted entirely on servers in off-site data centers and powered over the internet. A cloud PBX can provide even more features than a traditional PBX phone system, while enabling a non-technical administrator to easily set everything up.

Let’s start by breaking down cloud and pbx.

Cloud is a broad term for software and services that run on the internet. Pretty much everything these days runs “in the cloud”.

PBX stands for Private Branch Exchange, which is a private telephone system that enables an organization to communicate internally as well as externally. The PBX is the “machine” that routes incoming calls, enables you to transfer calls to other extensions, and houses all the specifications of how your phone system should work.


Traditional PBX versus cloud PBX

Traditional on-premise PBX systems are clunky, complicated, expensive, and difficult to maintain. A cloud PBX on the other hand, provides all of the phone features that a modern business needs to communicate, at a much lower cost and with many more benefits.

Cloud phone systems use Voice over Internet Protocol (VoIP) technology to make and receive phone calls. VoIP technology uses the internet to route telephone calls between end points using the industry standard of Session Initiation Protocol (SIP) to set up calls between phones.

Related: Hosted PBX vs SIP Trunking - What’s the Difference?

With a cloud-hosted PBX, all of the services, features and functionality of the phone system are accessed via the internet rather than from a complicated box of technology, cables, and switches on site. This also means that any new upgrades and features that the service provider releases are added to your phone system immediately.


A better design for your phone system

Since phone system services and actual call flow routing commands are running in off-site data centers, there is no hardware needed to run a cloud PBX. The hosted PBX works with your existing internet connection, and even desk phones are optional. A business can choose from IP phones, softphones, and mobile devices. A mobile app installed on a user’s mobile phone enables them to connect to the cloud phone system. Since there’s no physical PBX to configure, the routing of calls to IP phones is done using a simple drag-and-drop editor for managing services called a Call Flow.


Geographical redundancy gives you more reliable phone service

Telzio uses multiple data centers in dispersed geographic locations to house servers for failover redundancy. Redundancy means that Telzio data center servers have exact replicas so that if one fails it can be automatically replaced (failover) by another to avoid downtime. This setup also enables call routing efficiency so that multiple offices and mobile users have high quality calls wherever they are located.

Security in the digital age is always a growing concern and ensuring it through a cloud PBX system is paramount. Telzio utilizes highly secure data centers with extremely robust security measures for the data center and its servers. We also provide VoIP security tips and services like two-factor authentication to ensure that you can secure your phone system on your end.

Learn more about Telzio’s commitment to reliability.


Customer support is minimized with a cloud PBX

A cloud PBX from Telzio can be set up and managed by anyone, as the platform does not require any technical expertise to be a savvy user/administrator. A drag-and-drop call flow editor enables you to quickly and easily customize PBX features, phone numbers, and user settings in real time. You can deploy a single system for multiple different locations, each with their own unique configuration.

This means consolidation and more cost savings.


Why companies like Netflix choose to be hosted in the cloud

Affordability, flexibility, scalability and simplicity are all reasons why organizations like Netflix, Lyft, Airbnb, and Stanford University use Telzio. On average, Telzio reduces costs 30 to 75 percent for new customers. These cost savings can be seen in organizations switching over from on-premise systems, as well as other unified communications providers. With Telzio’s unique pricing model, user fees are eliminated in favor of a highly efficient usage model. A cloud PBX converts a capital expenditure (CAPEX) model with big upfront and ongoing IT maintenance costs, to a monthly operational expenditure (OPEX) that scales.

This makes for a low Total Cost of Ownership (TCO) as the only hardware costs are the optional desk phones. Alternatively, a good portion of modern teams choose to go completely virtual with the Telzio Webphone or Telzio Mobile App.

A recap of what a cloud PBX offers your business:

  • Enterprise-grade telephone services, features and functionality that are more expansive and far less costly (30-75 percent cost reduction) than traditional PBX systems
  • Modern VoIP technology to transport the calls and SIP to route them
  • Phone system hosted in off-site data centers rather than on site, which means no hardware maintenance
  • Flexibility to use IP phones, virtual phones, and/or mobile phones from any location
  • Ease-of-use in all aspects of phone onboarding, configuration, routing, call services and permissions of the entire system remotely via web browser
  • All PBX features and services as part of monthly plans at no additional cost, and monthly plans based on usage, not seats or users
  • Switch from a Capex model to an Opex model with Low TCO  
  • Geographic flexibility allows everyone to use phone lines from any location
  • Data center redundancy allows for near zero downtime 

Technology must be cost effective, simple to use, and help you to run your business better. With cloud PBX solutions from Telzio, you don’t need any technical expertise, costly equipment, or expensive IT consultants to deploy and manage a customizable enterprise-grade phone system. Telzio lowers costs and increases simplicity, flexibility, agility, scalability and security so your business can meet all of the communication needs of your customers - today and in the future.

Victor Brown is an IT expert with significant experience in the healthcare, manufacturing, and construction industries. He currently spends his time as a writer and strategist specializing in B2B technology for organizations from startups to enterprises.