Glossary · Phone system (PBX)
Cloud PBX
In one sentence
A cloud PBX is a business phone system run by a provider in its data centres. Extensions, IVR menus, queues and call routing are managed from a web portal, with no PBX hardware on site.
Also known as : cloud PBX · cloud PBXs · virtual PBX · hosted PBX · hosted phone system · cloud phone system · hosted telephony
What is a cloud PBX?
A cloud PBX does everything a traditional PBX does, but none of it lives in your office. The switching software runs in the provider’s data centres, and staff connect with IP desk phones, a softphone on their laptop or an app on their mobile. You will also see it called a virtual PBX, hosted PBX or cloud phone system.
The practical change is in who looks after it. There is no server to buy, patch or replace; you pay per user, and you change a greeting or opening hours yourself in a web portal rather than raising a ticket with an installer.
How it works
- The provider assigns your numbers, new or ported, to your account.
- You create users and extensions; each can have its own DID.
- You design the inbound call flow: greeting, IVR menu, call queues, opening hours and bank holiday rules.
- Phones and apps register over the internet, so someone working from home has exactly the same line as in the office.
Because everything travels over the network, call quality depends on your connection. A stable business broadband line and a local network that prioritises voice traffic cover most small and mid-sized offices.
Example
A Bristol veterinary group with three practices used to run three separate phone systems, and each practice’s receptionist was overwhelmed on Monday mornings while the others were quiet. With a cloud PBX, each practice keeps its local 0117 number, but calls not answered within 30 seconds overflow to a shared queue that any receptionist across the group can pick up. Out of hours, callers hear the emergency vet’s number. When a new practice joined the group, it was added to the same system in an afternoon.
Cloud PBX at Universal Telecom
Our virtual PBX includes extensions, IVR, queues, call recording, a mobile app and a webphone, billed per user with no long contract. You can port your current numbers or add numbers in other countries through global numbering. AI features such as call transcription belong to our sister brand utio.io: see automatic transcription.
Frequently asked questions
Is a cloud PBX the same as a virtual PBX or hosted PBX?
In practice, yes. All three describe a phone system that runs on the provider's servers rather than on your premises. Some vendors use hosted PBX for single-tenant setups, but the user experience is the same.
What happens to my phones if the internet goes down?
Calls to your numbers keep arriving at the provider. You can set a failover rule so they ring mobile apps or another site, or go to voicemail, until your connection is back.
Can I keep my existing numbers?
Usually yes. Geographic and non-geographic numbers can be ported from your current provider; the new provider manages the port and the numbers move on an agreed date.
Related terms
- PBX
A PBX (private branch exchange) is a business's own telephone switch. It connects internal extensions to each other and to the public network, and runs features such as IVR menus, queues and voicemail.
- UCaaS
UCaaS (unified communications as a service) brings business telephony, video meetings, instant messaging and often file sharing together in one cloud service, billed per user and used from desk phones, computers or mobiles.
- IVR (interactive voice response)
IVR (interactive voice response) is the automated phone menu that greets callers and routes them based on the keys they press, such as “press 1 for sales, press 2 for support”.
- Softphone
A softphone is a phone application that runs on a computer or smartphone. It replaces the desk phone and connects to the company phone system over VoIP, using the business number.
- Call queue
A call queue holds incoming callers when every agent is busy and connects them in order of arrival as soon as someone is free, playing music and announcements while they wait.
- DID (direct inward dialling)
A DID (direct inward dialling) number, called a DDI in the UK, is a public phone number that rings a specific extension, team or call flow directly, without passing through a switchboard.
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