Traditional PBX phone systems were great until cloud providers introduced advanced features, making communication management effortless. Also, the pandemic made businesses realize that their traditional phone systems are pretty limited. 

Since you’re reading this, we assume that you are probably not satisfied with your traditional PBX phone system. Don’t worry. You’re not alone; most people aren’t happy with their current systems!

The increase in the adoption of cloud PBX proves this. In 2010, cloud PBX accounted for 4% of the total PBX sales. In 2019, the number increased to 18%. Moreover, North America is expected to reach cloud adoption of more than 50% in the global PBX market by the end of 2025. 

More and more companies are adopting cloud PBX because it is flexible, scalable, cost-effective, and provides more features than any traditional PBX. 

But the question is, is the cloud PBX phone system the right choice for SMEs? In this article, we will discuss it in-depth. Let’s get started!

What is Cloud PBX?

Cloud PBX is a telephony system that uses the internet instead of wires to route incoming and outgoing calls. It is hosted and managed by third-party providers and can be run on any device as long as it is connected to the internet.


Cloud PBX phone systems have become the go-to choice for small and mid-sized enterprises as they are more reliable and agile than their traditional counterparts. By investing in cloud systems, you can save time, reduce maintenance requirements, ensure better productivity, and enjoy a lower total cost of ownership. 

The process of a cloud phone system is simple: you connect your VoIP number with the cloud system and start making calls. No wiring or additional setup is required!

Difference Between Cloud PBX and Traditional PBX

The primary difference between cloud PBX and traditional PBX is the way they route calls. The former uses the internet to make and receive calls, while the latter uses legacy systems (copper wires) to transfer data via PSTN (Public Switched Telephone Network). 

This means you won’t need to invest in infrastructure, bulky hardware, or more office space. Likewise, your phone system provider maintains and upgrades the systems regularly, thereby eliminating the need for an in-house IT team. 

Another major difference between cloud PBX and traditional PBX is that the former is not limited to any location. Unlike in the conventional setup where agents are fixed to a desk, it allows you to operate your business from anywhere. 

5 Benefits of Cloud PBX Phone Systems for SMEs

Now that you know what a cloud PBX phone system is, let’s look at the benefits of a cloud phone system.

 1- Better Flexibility

The biggest drawback of traditional phone systems, i.e., Flexibility, is the advantage of cloud PBX. 

When you switch to a cloud-based PBX phone system, you are no longer glued to a specific location. So whether your agents are working from home, you want to add new users, or switch providers, you have all the flexibility you need. 

You can even customize the features and functionalities of the system. So whether you require new features, new devices, or phone numbers, everything is just a few clicks away. 

2- Higher Reliability

Traditional PBX systems are known for their reliability as everything is under the control of the company. This is probably why many business owners doubt whether cloud PBX can replace their regular phone lines. 

If it sounds familiar, don’t worry. Cloud PBX phone system providers guarantee a 99.99% uptime reliability in the service level agreement (SLA). Besides, they take care of maintenance and upgrades during off-hours so your service won’t get affected. 

During power or internet outages, you can set up call forwarding to route all the incoming calls to your smartphone and not miss even a single one. 

3- Lower Costs

As mentioned above, cloud PBX is more cost-effective than traditional phone systems. That’s because you don’t need any infrastructure, expensive hardware, or an IT team to maintain the system. 

Moreover, the calls are routed over the internet, so the phone bills are significantly reduced even if you make international calls. Adding new users also gets cost-effective with cloud systems (free at most times). 

 4- More Integrations

Most cloud phone systems for small businesses offer built-in integrations with everyday tools like Microsoft 365, Zoho, Zendesk, etc.

These integrations enable you to sync details from your communication tool to other systems automatically. This helps increase productivity, minimize human error, and ensure compliance. 

For instance, when you talk to a customer, the details will be automatically entered into the CRM. You can then use these insights to offer a personalized experience to each individual.

5- Advanced Features

We already mentioned that cloud PBX offers more advanced features than traditional systems. These functionalities are aimed to improve the productivity and efficiency of your sales and support teams. 

It also makes it easier for managers to monitor and collaborate with their team members. With a cloud-based PBX phone system, you can monitor calls in real-time, measure performance, and plan for peak times more effectively. 

That brings us to the next section!

Must-have Features in Your Cloud PBX Phone System

Though there are several features in a cloud PBX system, here are the intuitive functionalities that you should look for before investing in it.

Interactive Voice Response (IVR)

IVR technology enables businesses to handle multiple calls simultaneously and route them to the correct department. With IVR, customers are usually provided with different options so they can choose the right one as per their issue. IVR also allows you to share custom messages while they wait for an agent to pick the call. 

Call Recording

As the name suggests, call recording allows you to record all the incoming and outgoing calls. This helps businesses ensure compliance, improve their processes over time, and train employees. You will also be able to determine issues during calls so you can better address them. 

Reporting and Analytics

Cloud PBX provides robust insights into your operations. For example, you will be able to monitor the number of answered or missed calls, the average time spent on call, average customer satisfaction rate, first call resolution rate, and more. 

These insights will help you make data-backed decisions to improve your processes to enhance customer satisfaction

Call Whispering & Barging

Call whispering allows managers to share context with agents before answering a call. On the other hand, call barging lets supervisors assist agents during a call in real-time. The person on the other side won’t be able to listen to you, so it makes the call more effective. 

Call Groups

It allows businesses to create a group of agents (often a specific department) and redirects incoming calls to them. The call will then be connected to the first agent who responds to the caller, reducing wait times. 

Wrapping Up

In the era of remote working and ever-changing business needs, investing in a cloud PBX phone system has become more important than ever. Moving your traditional phone system to the cloud will provide more flexibility and agility while reducing operational costs. 

Are you ready to migrate to the cloud? If not, what’s stopping you? Let us know your concerns, and we will address them asap!


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