What are the benefits and disadvantages of cloud-hosted PBX?

A hosted PBX, often known as a cloud PBX, is an internet-based phone system for businesses. A cloud-host provider takes care of your Private Branch Exchange (PBX) needs for you, so you don’t need on-site equipment to do so.

What are then the advantages and disadvantages of a cloud-hosted PBX?

The Pros

Cost-effective

On-site PBX systems allow you to save costs over several years, provided your system does not need major upgrades. However, unexpected cost increases can occur when modifications, replacements or expansion are required. When an integrated system is updated, compatibility issues may arise that necessitate an unexpected upgrade.

Setting up a cloud-hosted PBX system does not require any up-front expenses for complicated and depreciating equipment. Most of these systems are charged on a number of users per month, quarter or year basis, making the cost relatively predictable and easier to budget for. A cloud-hosted PBX system will also be more flexible and adaptable to the demands of a growing business.

Keeping up with technological innovations and updating hardware for the PBX system are no longer your headache, but are provided by the cloud host. Most cloud communications systems include software upgrades, and new applications are often introduced to enhance functionality. Adding a user license is all it takes to grow your phone system along with your company.

To effectively manage several on-premises PBXs of various ages and capabilities might be a challenge. In some cases, the systems may even be from different suppliers and interoperability issues may result in the loss of capabilities. The task of standardising all locations may be near-impossible.

Expanding across locations

If you want to expand your business to a new location, you can simply add hosted telephone sets to your current system. Standardised capabilities and complete interoperability across sites are two advantages of cloud-hosted systems. When an upgrade is made, it affects all systems at once. Maintenance is delegated to the hosted PBX provider and fewer resources are required to learn and use the system.

More and more people are demanding to use their own gadgets as more flexible work arrangements and more sophisticated technology become available to the general public. When it comes to common compatibility needs like smartphone and tablet support, a cloud communications provider can pool resources from all of its subscribers and automatically send updated software to all of its clients.

The Cons

Staff implications

In-house PBX systems often need to rely on internal staff to maintain the system. People with varied levels of expertise and technical know-how in relation to their particular communication platforms typically make up these teams. Some of those personnel may get sick, quit for other prospects, or fall short of expectations. Additionally, they may be in charge of other IT projects that take precedence over PBX system maintenance and improvement activities.

The only thing that you have to worry about with hosted phone systems is making sure that the bills are paid on time. The service provider is solely responsible for the operation, upgrade and maintenance of the PBX system.

Connectivity and disaster recovery

One of the disadvantages to the cloud-hosted system is that your company will need reliable and quality connection to the internet. It’s likely that you’ll need a higher-capacity broadband connection with increased service level agreements.

However, on-site PBX systems are more affected by natural disasters like floods or earthquakes than those in the cloud. It is possible for the hardware of a company’s phone system to be irreparably damaged if the company’s facility is struck.

With a hosted PBX, a corporation can relocate to another location, or even operate from home, and get back to business almost immediately. All of the company’s data and settings are still on the cloud, waiting to be reconnected.

Now that you know what cloud PBX is, it’s time to find out more about the leading hosted-pbx provider in South Africa; get in touch with a consultant today.