PBX Definition 

PBX is an old word to refer to a business phone system. It refers to the private branch exchange used to connect several lines to an office with a limited number of telephone numbers.

An example could be as simple as the phones and lines that connect your favorite medical practice’s office to the outside world. Again, this is nothing new as this has existed for quite decades.  

PBX in the cloud

On the other hand, we have Cloud Computing. Cloud Computing stores and access data via the Internet instead of using computer memory or physical infrastructure.

Then, a cloud PBX is a business phone system based on connections to the Internet and virtual lines that are not physically connected to the phones. Cloud PBX is based out of Voice Over IP or VoIP.

Phone systems based on VoIP don’t host software and data on a server like other digital systems usually do. Instead, a cloud PBX hosts everything in the cloud.  The reason why this is convenient is that this is less expensive.

A regular PBX had to be installed on company premises, which meant it needed a lot of money, hardware, and installation to operate. In other words, standard phone systems are costly and need lots of maintenance.

With PBX running from the cloud, costs are reduced drastically since the provider is in charge of hosting the service, including updates and maintenance in the cost. Also, cloud phone systems don’t require much effort to grow.

Suppose a new employee is added to the team. In that case, there is no need to expand the phone system by adding interfaces or additional hardware.

Instead, one can talk to the provider and ask them to add another person to the account. The only thing that might need to be purchased is another VoIP-enabled desktop phone.

The only thing that has to be done is to plug it into an Internet port and a power source it’s they’re ready to go. Also, Cloud Telephony operators usually provide all the required setup and configuration to avoid extra deployment costs. 

Benefits of Cloud PBX

Benefits of cloud PBX also include flexibility. In the agitated world in which we live today, this is a huge advantage. With a cloud-based PBX, business calls can be made from a smartphone or a laptop, as long as an Internet connection is available. That means that, for example, moving to a new working location won’t be as hard.

It is also a reliable service. Normally, the cables of traditional landline phones are vulnerable to vandalism, natural disasters, and wear due to the environment. Since PBX cloud systems are hosted on the Internet, as long as the internet connection is strong, the system will rarely go down.

In sum, the use of a PBX hosted in the cloud can solve many problems caused by the use of a traditional PBX; especially in the case of small businesses, a cloud based PBX might be the perfect phone system.


Taking a business phone system to the cloud is a brilliant move. It can also be challenging, and it’s essential to connect with an experienced service provider.

LinkedIP, an Award-Winning cloud communications provider, offer unlimited calling through its cloud phone system.

LinkedIP also bundles an app that allows businesses to take and make calls everywhere there is Internet.

And the Business Voice Suite offered by LinkedIP includes contact center features such as Automatic Call Distribution, an IVR system, Call Recording, Call Transfer and 70+ business features.   

If you want to know how LinkedIP can help you move your communications to the cloud, please contact us at info@linkedip.com or call us at 1-800-969-0164.