Private branch exchange (PBX) is a type of telephone network used by businesses to route calls to specific departments or phone extensions.
Traditionally, the system is housed on office grounds. The system machines are bulky and necessitate their own storage room, as well as periodic repairs and maintenance.
Only large corporations had the resources to install and manage this type of setup for their office phones in the past. This changed with the advent of cloud computing.
Cloud Phone System vs Traditional Phone System
A cloud phone system provides an experience that is distinct from traditional PSTN (Public Switched Telephone Network) landlines. But how does this system compare to one of the older business communications systems? Consider the following:
Hardware Requirements
For a Traditional Phone System and a Cloud Phone System copper lines, phones, private branch exchange (PBX) VoIP endpoints (phones, computers, smart devices), modems, and routers were installed.
Scaling necessitates the acquisition of new licenses, lines, and phones from the telecom carrier.
Online, you can easily add new lines using the โadd a lineโ section of the control panel.
Long journey
- Long-distance calling incurs additional charges.
- Most providers include unlimited calling within the United States and Canada, as well as less expensive international long-distance calling.
Services for Emergencies
- Dispatchers dispatch responders to the phone lineโs registered location.
- E911 services dispatch responders to the accountโs registered location via the providerโs portal.
- Cloud-based faxing converts scanned documents into an electric signal that is transmitted over phone lines.
- When compared to traditional faxing, online faxing is more secure and has fewer quality issues.
Call Rerouting
- Call forwarding is usually an optional feature.
- Many providers offer this feature, and many go above and beyond with features like remote call forwarding.
- Most service plans include advanced call routing, auto-attendant service, and basic IVR.
Sound Quality
- Voice band audio in an analog format is limited, so sound fidelity varies.
- The internet connection strength, packet loss, and other factors have the greatest impact on sound quality.
12 Key Cloud Phone System Features
A seguir estรฃo listados os principais e mais eficazes recursos.
Call Forwarding
Unanswered phone calls are automatically forwarded to another phone number without requiring the caller to physically hang up and dial additional numbers.
- If an agent does not answer their desk phone, the call is forwarded to their cell phone, then home phone, etc.
- Admins and agents can change the order of dialing, add/remove numbers, and forward calls to other agents/departments.
Why Do You Need It?
Call forwarding improves agentsโ privacy and flexibility while increasing first contact resolution rates.
Advanced Call Routing With Drag-and-Drop Call Flow Design
Call routing allows users to create customizable rules determining which agents or departments receive calls.
Strategies include:
- Round robin: A โ B โ C โ A
- Skills-based routing
- Most idle routing
- Priority-based routing (VIP customers)
Why Do You Need It?
Personalized call flow, reduced wait times, and ensuring callers speak to the right agent.
IVR (Interactive Voice Response)
Cloud IVR uses automated menus to route callers, process payments, and check account status.
Why Do You Need It?
High customer self-service and fewer calls needing live agents.
Call Monitoring and Call Recording
Managers can:
- Listen live
- Whisper to agents
- Barge calls
Recordings include:
- Phone calls
- Video meetings
- Screen streams
Why Do You Need It?
- Evaluate agent performance
- Learn customer issues
- Keep track of conversations
- Avoid manual note-taking
Unified Communications
Includes:
- Phone calling
- SMS texting
- Video conferencing
- Instant messaging
- Online faxing
Why Do You Need It?
- No switching apps all day
- Customers donโt repeat themselves
- Increased productivity and satisfaction
See also: The Best Help Desk Software
Local Presence and Toll-Free Vanity Numbers
Businesses can port numbers or buy new ones.
Why Do You Need It?
More professional appearance and local presence in multiple regions.
Video Calling With Team Collaboration Tools
Includes:
- Screen sharing
- File co-editing
- Whiteboards
- Breakout rooms
- Polling
- Presence indicators
Why Do You Need It?
- Fewer in-person meetings
- Better remote collaboration
- Higher engagement
Voicemail on Display (Visual Voicemail)
Transcribes voicemails to text and sends the audio + transcription to users.
Why Do You Need It?
Agents prioritize callbacks and avoid miscommunication.
Call Pops and CRM Integrations
Shows caller information instantly inside the softphone.
Why Do You Need It?
Keeps all customer data accessible and eliminates app switching.
Customer Callback
Customers can request a callback instead of waiting on hold.
Why Do You Need It?
- Reduces abandonment
- Improves customer experience
- Manages peak times
Real-Time and Historical Call Data & Analytics
Metrics include:
- Average call length
- Response time
- Call volume
- First-call resolution rate
- Agent talk time
- % routed to voicemail
- Cost per call
- Conversion rate
Why Do You Need It?
Improves training, productivity, and resource planning.
Automation and AI
Examples:
- Auto-attendants
- Conversational AI
- NLP routing
- Chatbots
- Dial-by-name directories
Why Do You Need It?
Automates routine tasks and increases efficiency.
Top 3 Cloud-Based Phone Systems + Pricing
Dialpad
Ideal for small/new teams wanting productivity.
Highlights:
- Strong AI
- Real-time transcription
- Agent assist
- Skills-based routing
Nextiva
Advanced native CX + CRM features.
Highlights:
- Built-in CRM
- Team collaboration tools
- Call Pop
- Sentiment analysis
- Forecasting and analytics
RingCentral MVP
For small to mid-sized hybrid teams.
Highlights:
- Call blasting
- Call forwarding to many devices
- Dial-by-name directory
- Up to 250 IVR menus
- Visual Dial Plan Editor
GoToConnect
Best for small teams requiring customizable call management.
Highlights:
- Over 100 call center features
- Drag-and-drop Dial Plan Editor
- Unlimited auto-attendants
- Active developer community
What is a Cloud Phone System?
A VoIP-based business phone system hosted in the cloud instead of on-premises.
Works on:
- Desktop
- Laptop
- Mobile
- Tablets
- Desk phones
Provides more features, flexibility, and lower costs.
How Does a Cloud Phone System Work?
Landlines use electric signals; VoIP uses data packets sent via the internet.
- VoIP phones โ Ethernet
- Landlines โ RJ11 wires
- VoIP = more advanced, like mini-computers
Also enables free internal calls and remote teams working as one system.
Cloud Phone System Pros and Cons
VoIP is used by nearly 80% of U.S. businesses and provides:
- More features
- More flexibility
- Lower costs
- Plans for all business sizes
Additional Resources
If you want to compare systems or dive deeper, explore:
- Business VoIP Buyerโs Guide
- Vonage vs RingCentral
- RingCentral vs Nextiva
