Rise Of The Cloud Hosted PBX

The days of the in-house PBX or Private Branch Exchange may be numbered. AireSpring, one of the fastest growing and most innovative of the competitive carriers, is now offering a cloud hosted PBX system they call AirePBX. With AirePBX, the PBX disappears but the phones remain.

In a way, we're going back in time to move forward. In the beginning, all switching was done at the telephone company central office and all phones were connected to the telco switch. Then came in-house telephone operator switchboards and later automated switchboards called Key Telephone Systems (KTS) and Private Branch Exchanges (PBX). What a cloud hosted PBX does is move the switching system back to the service provider.

So, how can you save money by going back to an earlier network architecture? A lot has changed in the last century. For one thing, the monolithic “Ma Bell” no longer exists. There are a lot of competitive carriers vying for your business. That alone offers better pricing options. Technology has also changed. Phones no longer need their own network. With VoIP, the telephone shares the same network as all the company computers, printers and other devices. The fact that you don’t need special proprietary wiring to connect to your phone service provider further increases competitive offerings and available features.

The idea behind a hosted VoIP system or cloud hosted PBX is that the expensive PBX system and its need for constant attention is taken over by a supplier who is in the PBX telephone business. That’s not the business you are in, is it? In fact, having to buy, install and maintain this equipment doesn’t really give you a competitive advantage at all. It’s just one more thing you pay for to get the communications services you need.

This is why companies are more than happy to ditch their venerable PBX in favor of a cloud solution. They are especially open to this alternative if their PBX is temperamental, nearing capacity, too old to be maintained, or too limited in features. Sure, you can go out and buy a shiny new model and do a “forklift upgrade.” Stop and think, though. Do you really want to shell out the thousands and perhaps tens of thousands of dollars needed for a new PBX, or would you rather pay as you go?

Let’s take a look at what AirePBX has to offer. You don’t have a PBX system in-house anymore. You just have IP phones plugged into your network and AireSpring provides those. No capital investment required. Each phone has its own voicemail. You can even get visual voicemail. Even though the PBX is hosted remotely, your internal call routing is still free, as are local outside calls. An auto-attendant is included to direct incoming calls. You can set up hunting for workgroups, add toll free numbers and virtual private numbers, have conference calls, and enjoy all the features you’d expect in a modern business phone system.

All of this is fully managed by AireSpring on their next generation IP backbone network to ensure voice quality and system availability. Compared to the often dicey performance of Internet VoIP implementations, this is head and shoulders better. AirePBX is an enterprise VoIP solution that scales easily for small and medium companies, too.

Are you in search of a better business telephone system for your company? If so, you may be surprised and delighted by the capabilities and low costs of the new cloud hosted PBX solutions. Why not get a quote for hosted VoIP phone services and see if you can have the business communications you need without the cost and aggravation of maintaining your own in-house telephone system.

Where Hosted PBX Solutions Save

Business telephone systems range from the very simple with a few phones and a few lines to complex private branch exchanges that support multiple sites. The new approach is a hosted PBX that makes things simple again. But do hosted PBX solutions really save anything and can they maintain voice quality?

With the simplest arrangement of a single landline phone connected to the local phone company, there really isn’t much to manage. You pay so much per month for “dial tone” that makes your phone work and gives you typically unlimited local calling. You have the option to switch to a different provider for long distance service or use a dial-around service for international calling. These are options to save you on the per minute calling rates.

The basic analog or POTS (Plain Old Telephone Service) phone service seems simple because all the complexity is at the other end of the wire. What you don’t see or have to deal with is the intricacies of connecting your line to any of billions worldwide or to even more billions of wireless callers. If you have, say, 3 business locations with 1 phone each, they talk to each other by dialing up the desired location just like any other phone number.

Businesses found out just how complex the PSTN (Public Switched Telephone Network) was when they got big enough to have lots of desk phones and a dozen or more outside lines. What many companies did was to buy their own telephone switching system called a PBX (Private Branch Exchange.) The advantage of having your own PBX system is that calls within the company stay on your own wiring and you don’t have to pay the telephone company to connect them. That includes more complex PBX arrangements with digital tie lines that connect multiple locations in a private network. Once again, the motivation is to keep as many calls as possible off the public network to avoid “toll” charges.

Many companies have rued the day the got into the telephone business. PBX systems are expensive to buy and need constant updates as employees move within the company. There is also maintenance activity for both the PBX and its telephone network wiring.

Hosted PBX is a fairly new service that offers to offload the expense of in-house phone systems. It only became possible when most companies installed Local Area Networks for their computers and the price of private digital lines became affordable. The enabling technology is VoIP or Voice over Internet Protocol. In this case, Internet refers to the technology standard and not necessarily use of the public Internet.

Hosted PBX refers to using a large PBX telephone system that is located or hosted by a third-party service provider. This PBX is big enough to handle the telephone traffic of many different companies to gain an economy of scale. In a way, this is similar to going back to the days where each phone was individually connected to a local telephone company that took care of call switching.

So, where does the cost savings come from? Network consolidation is one area. Both telephones and computers run on a single converged voice and data network. There are no separate telephone wires. This network is extended to the hosted PBX provider using a private digital line called a SIP trunk. You are not tied to a particular service provider. There are many competing hosted PBX solutions and that competition is another way that cost savings can be offered.

The private SIP trunk helps to maintain high voice quality because it provides the characteristics of low latency, jitter, packet loss and congestion, along with quality of service mechanisms that keep data packets from interfering with voice packets. You can also buy Internet based hosted PBX services at lower costs, but the vagaries of the public Internet can introduce distortion and clipping in the conversations.

Do hosted PBX solutions offer a real cost savings for your company? It depends on how many seats you have, what features you want and what your existing system is costing you. If you are close to replacing an aging PBX or one that has run out of capacity, the economics highly favor hosted solutions. To decide for yourself, get competitive pricing on hosted PBX solutions for business. It may come down to whether you want to pay as you go versus investing in your own in-house phone system.