The Value of Using a Hosted PBX Phone System for your Business

Businesses of all sizes and particularly SMEs have evolved over the past decade. This evolution is followed by a surge of technological advances in process flows. When it comes to technology and evolution, communication systems have assumed an altogether new approach. Hosted PBX phone systems have replaced traditional telco landlines. The need of replacing the ineffective legacy phone systems with proactive channels gave rise to cloud communication systems.

Advanced communication systems have changed the landscape of how businesses interact internally as well as with their clients, customers, and prospective leads. In the modern integrated business world, companies expect their VoIP systems to cater for every call from auto attendants, to on-hold music functionality, call queuing, redirections, and much more. Cloud communication systems continuously enhance their features and functionalities to cope with the increasing demand for business communications. Before we go into the benefits and advantages of a hosted PBX phone system, let’s first understand what hosted PBX is and how it works.

What is a Hosted PBX Phone System?

Simply stated, a hosted PBX (Private Branch Exchange) is essentially a refined version of the traditional PBX phone. A traditional PBX phone would redirect the incoming calls to different phones at the same location using an on-site server. Contrary to this, a hosted PBX phone system does not require an on-site server. Rather, it processes the communication signals via servers that are being hosted on the cloud.

According to a report by Market Research Future, the cloud communication system is expected to reach a market worth of USD 51.37 billion by  2030. These numbers say a lot about the significance and value addition of hosted PBX phone systems within business communication optimization ventures.

Benefits of a Hosted PBX Phone System

Hosted PBX phone system offers a wide range of benefits to companies of all sizes and structures equally. The reason behind its versatility is the degree of flexibility this communication system offers to its users. Mentioned below are some of the major advantages and reasons to switch to a hosted PBX phone system.

Benefits of a hosted PBX phone system

Cost-Effective Installation

Cost reduction is one of the most remarkable benefits of integrating a hosted phone system. Since the need to maintain a server on your premises ceases to exist, the costs associated with installation, maintenance, and troubleshooting are also eliminated. In effect, you only pay for the communication services you use, and the rest of the costs go to the cloud communication providers.

Security and Encryptions

In the world of the data revolution, cyber security is a fundamental requirement of every other business. However, not every business has the capacity or resources to onboard an internal team of cybersecurity experts to ensure data protection. Security breach becomes a major concern in such a situation. However, a cloud communication solution offers built-in protection for data and communication. Businesses do not have to worry about compromised data as every call and associated data can be secured by encryptions to ensure the privacy and security of every interaction.

Increased Productivity On-the-Go

According to Jell, workers tend to be 20% more productive when tackling projects remotely. In order to capitalize on that 20% enhanced productivity, businesses need to establish streamlined communication for remote workers. Cloud phone systems have the capacity to bridge the communication gap between remote and on-site employees. This model offers a unified communication platform to enhance workplace productivity.

Flexible Access

Speaking of increasing productivity, accessibility to communication channels is of foremost importance. With a hosted PBX phone system, you do not require a hardwired telco system or even a laptop/PC to be able to communicate. A hosted PBX phone system rather offers easy accessibility to softphone applications across computers, laptops, tablets, and mobile phones. It lets teams stay connected across any device that is feasible and accessible at a given time.

Tailored Configurations

Unlike traditional PBX phone systems that come with certain specifications and functionality, a hosted PBX communication system provides an easy-to-use interface along with numerous customizations and tailoring options. In this way, businesses can define a custom call flow to enhance communication effectiveness.

Increased Uptime

The maintenance of hosted PBX servers lies with the cloud communication service providers. Hence, you do not need to worry about maintenance or downtime. The cloud PBX providers perform the maintenance, updates, or repairs off-site and your system is never down in the process. In this way, your communication remains consistent and streamlined all the time.

Disaster Recovery and Backups

One of the most attractive features of hosted communications is geo-redundancy. Geo-redundancy maintains several backups of your data and communications at various locations. In case of system disruption or failure, geo-redundancy comes to play and recovers the backup from a different location. In this way, end-to-end communication remains swift and steady while disaster management tools recover the disruptions in the system.

Automated System Updates

Cloud communication technology evolved the landscape of how businesses communicated, and it is continuously updating itself with the latest features. Instead of businesses identifying and optimizing their communications, hosted PBX providers do the job for you. Hence, you focus on your core business processes while your service providers keep you updated with contemporary technologies.


When it comes to cloud communications, you only pay for the services you use. In effect, you can scale up or scale down your cloud communication services. When the business grows down the line, you do not need to replace your existing systems with new ones for increased productivity. Instead, you simply contact your cloud communications service provider to enhance the features of your current hosted PBX phone system.

Does Hosted PBX System Suit Your Business?

The answer to this question lies in the tailored configuration and scalability of cloud communication systems. Yes, your business needs a hosted communication platform to cope with the competitive marketplace. Cut the upfront hardware costs and optimize your business communications simultaneously. So, what’s holding you back now?

Switching is Easy!

Contact RingOffice Cloud Phone System experts here or read more about our cloud communication services. Our experts analyze your business, define the requirements and tailor a solution that fits best with your business concerns.