Cloud PBX (Private Branch Exchange) is a modern upgrade of traditional telephone systems. It is a web-based communication software that allows users to log into the system like any other software – through a web browser, desktop application or mobile application. They can also use IP-enabled desk phones, but don’t have to.
Administrators can manage settings, add or remove users, and troubleshoot issues with equal ease. It’s just as easy to deploy without the need for physical cables or infrastructure.
In addition to convenience and simplicity, there is another big advantage: cost reduction.
Potential savings vs landlines
A cloud PBX service costs around $30 per user per month on average. This is a conservative estimate that reflects the cost of a standard feature set plan.
Traditional phone lines cost around $50 per user per month, excluding maintenance.
Saving $20 may not sound like much, but it works out to $240 per year. Plus it’s up to the user. With 20 users, you save $4,800 per year.
In reality, the savings are likely to be much greater. You won’t have to worry about system maintenance, upgrades or anything like that. All of this should be covered by your regular monthly subscription.
If you already have a full in-house IT team, you can manage your own cloud system even cheaper – these systems can run for as little as $5 per user per month.
Although these numbers are only an estimate, they highlight the savings potential.
What does cloud PBX include?
First and foremost, a cloud setup eliminates the need for expensive upfront investment. And because there is no physical infrastructure, these types of systems are incredibly flexible and scalable.
But perhaps the most important aspect is that users can make and receive calls from any device that is connected to the Internet (this is called a softphone).
If they have a mobile app on their smartphone, they don’t have to be at their desk. In addition, they will be able to work from home and use their laptop instead of a desk phone. Ultimately, it offers unrivaled mobility.
In addition, a cloud PBX includes a number of features that are difficult or impossible to obtain from a legacy PSTN system.
Each provider offers different features, but most come with standard features, including:
- Unlimited incoming and outgoing calls: Most providers don’t limit you. Some offer lower monthly fees but limit you to 500 or 1,000 minutes per month. This could be a smart way to save money if you have users who rarely use the phone.
- Voicemail: Often with advanced features such as voicemail to email, voicemail transcripts and visual voicemail.
- Text messages: This is often part of the basic or intermediate level with most providers. Users can text with customers, clients and each other.
- Collaboration tools: Many cloud PBX systems include video conferencing, audio conferencing, team chat, file sharing, and even faxing. Rather than a separate subscription, you get them all on one platform.
- Call routing: You will be able to set your own rules for routing and forwarding calls based on factors such as time of day, holidays or lunch breaks.
- Caller ID: Thanks to this, you have an overview of who is calling. If you connect to the CRM, you can see additional details, such as previous purchases, before responding.
- Call recording: You will be able to save recordings for a certain period of time and choose between manual or automatic recording. You may need to upgrade to mid or top tier depending on your provider.
- Virtual receptionist: Want to greet callers professionally? This is how it’s done.
- Basic analytics: Most systems cover the basics such as call logs, quality of service and standard usage data.
For most teams, a standard phone system with the options listed above is sufficient.
However, call centers, sales teams, and customer support teams likely need more robust opportunities to customize, automate, and handle bulk calls.
Although these types of systems are more expensive, you get what you pay for. Advanced cloud PBX features include:
- IVR: Interactive voice response allows you to create a phone menu so that callers can be directed to the right person.
- Automatic call distribution: ACD allows you to set up a series of rules that determine how calls are routed to different departments and employees. There are a variety of strategies, including skill-based strategies, next available agent, preferred agent, and more.
- Callbacks: If your queue gets too long, you can automatically offer callers the option to call them back when they reach the front of the line.
- Automatic dialing: Predictive, progressive and powerful dialing makes it easy for users to call a large number of people. Different types of dialers have different features, but the goal is efficient outgoing calls.
- Speech Analysis: This takes standard analysis to the next level. The system transcribes calls and can help identify recurring themes, sentiment, customer satisfaction, agent engagement, compliance and more.
- Workforce optimization: Planning, forecasting, engagement, performance management and quality assurance become more important as your team grows.
Whether you need basic features or advanced options, upgrading to a better plan that offers more doesn’t require a whole new system.
All you have to do is contact your provider. They will take care of the rest. Once you’ve upgraded your account, you’ll have all the new tools and features you need right in the same software you’ve been using.
Cloud PBX vs managing your own system
I said earlier that you can save even more if you manage your own cloud PBX system. While this is true, price is not the only thing to consider when making this decision.
You should also think about technical expertise, resource allocation, security requirements and the needs of your business.
Manage your own cloud phone system
It may seem simple to buy software and install it on your own servers. However, the reality is more complicated. You will need an IP PBX for call routing and SIP trunking services that will allow your IP PBX to connect to landlines, VoIP phone systems and mobile phones.
In addition to setup, you are also responsible for security, redundancy and quality of service.
If you don’t already have an experienced IT team, you’ll need to hire one.
The advantage is that you will be able to customize everything to your needs for a much lower price. You will also not be at the mercy of a third party with its own requirements, rules and regulations.
Overall, self-management is more accessible to larger businesses or those who have special needs that a paid cloud PBX service cannot meet.
Using a cloud PBX service
A cloud PBX service costs more per user, but eliminates the burden of system administration – your provider takes care of security, updates, maintenance, redundancy and everything else that’s needed.
It’s a hassle-free option that allows even the smallest businesses to have a dedicated phone system.
Bottom line? Each approach has its justification. On-premises management offers greater control and customization, while cloud-based PBX services give you greater simplicity and convenience.
