For years, businesses have been using PBX technology to route calls, allowing them to share a number of outside lines, to make inbound and outbound phone calls. Most companies with large numbers of employees, and multiple phones, cannot survive without PBX technology. Traditional PBX systems feature standard office phone aspects such as call routing, auto-attendants, voicemail, fax-integration, and user shortcuts. The original PBX technology was a cumbersomely large piece of hardware that was located on site, and manually operated. The required hardware was expensive, often required special storage accommodations, and needed frequent repairs. Characteristics of traditional PBX technology, include:
Cloud PBX, often referred to as hosted or virtual PBX, gives businesses access to PBX capabilities without having to purchase complex, and expensive equipment. Routing services are via the internet connection, using Voice over Internet Protocol (VoIP). Characteristics of cloud PBX technology, such as that used by RingCentral, include:
When purchasing an office telephone system, a large upfront investment is necessary. For a system allowing traditional PBX service for 20 users, RingCentral found that the initial hardware purchase is approximately $6,500. The charges will include a one-time phone cost, generally about $3,000, a setup and implementation fee of approximately $1,000, and PBX software licenses which generally amount to $4,000. Cloud PBX services require a one-time phone cost of approximately $2,000. That’s it.
Traditional PBX systems add additional charges for:
Cloud PBX systems offer many additional features at no charge, including long distance, local numbers for users, and continually upgraded software. The flexibility of the Cloud supports multiple physical offices, and use of laptops, smartphones, and desk phones.
In the long run, Cloud PBX systems are much more cost-effective to use than the ongoing expenses of traditional PBX. RingCentral detailed the difference in costs between traditional PBX and Cloud PBX systems as over $30,000 annually, for a system capability of 20 users.
Traditional PBX systems have a limited number of users that they can manage, and are also dependent upon how many lines they have available to them. Cloud PBX systems, such as RingCentral, remove the limitations. Businesses can add unlimited numbers of users at any time. Adding users is instantaneous, and there is no downtime required to rebuild databases, or add new servers.
Traditional PBX systems take time to setup, as hardware needs to be installed, and configured. Cloud PBX systems take relatively little time to setup as the main requirement is an internet connection.
Cloud PBX systems allow employees to work anywhere that they can receive an internet connection, enhancing their productivity levels. Remote workers simply connect a mobile device to the internet and make and receive calls no matter where they are located.
Cloud PBX systems allow administrators to manage users, assign devices, and locations, and users are able to manage many of their own personal settings. IT specialists are not required to make changes.
There are numerous benefits of using a Cloud PBX system versus a traditional PBX system. The advancements in technology can save you enormous amounts of money, while making your business more productive, and efficient. If you are a business, making a decision about your business phone, contact RingCentral.