The term PBX (private branch exchange) refers to a type of telephony system used for internal communication within companies. It allows users to make calls both inside the company and outside, essentially a business phone system. A traditional PBX, present on site in the form of hardware, connects users via the public switch telephone network. Whereas a virtual PBX cloud solution deploys a cloud-based software and VOIP.

An issue that many organisations actively using the traditional hardware PBX are finding is, that they are simply out of date and need to be replaced with next generation technology. Something that is mandatory by 2025. Business communication in the form of a RingCentral solution is now available as an all-in-one feature that adds both adaptability and flexibility. Another huge benefit of deploying an all-in-one unified communication system, as opposed to PBX hardware, is that all users can communicate from any location. This is particularly relevant with the change in logistics of the modern workforce and the adoption of hybrid working. There has been a direct correlation between the switch from hardware PBX to cloud PBX and the increase in remote or hybrid working.

A virtual, cloud-based PBX provides all the essential benefits of traditional hardware plus a few significant benefits. These benefits include security, voicemail and conferencing which all remain the same when you switch from traditional PBX to cloud. Even though the functions of security and general maintenance remain the same, the efficiency to which they are carried out is significantly better on the cloud PBX system. For example, adopting a cloud-based model means little to no hardware is required which prevents the need for businesses to employ maintenance to constantly monitor performance. In the case of traditional hardware PBX organisations can spend thousands on onsite hardware and keeping it up to date.

An important feature of a virtual PBX system is that it doesn’t completely reject the use of hardware, but rather gives freedom of choice of what to use. This is an interesting and attractive prospect for businesses that don’t use company phones, allowing every device to use the same web conferencing software. As PBX isn’t tied to any type of specific hardware, you will be able to connect your business system both locally and abroad, bringing a new dimension to hybrid working.

Internet permitting, with a virtual cloud solution users can connect using PBX system. Importantly, this prevents the network from being susceptible from a potential hardware malfunction and not being reliant on hardware performance. This gives a great sense of reliability and helps to ensure user experience remains at a high level. Reliability and security are important factors in cloud PBX adoption. RingCentral’s virtual PBX solution securely and reliably stores data in the cloud. In order to achieve this all data is username and password protected, only individuals given specific permission and authorisation can access it. To prevent any attacks on communication, transport layer security and secure real time transport protocol are deployed between all end points. This encrypts traffic and reinforces the security aspect of the RingCentral product.

The transition from traditional PBX to cloud PBX is likely to significantly increase in the coming years. This is due to the now mandatory guidelines to transition to a cloud PBX system by the year 2025. 81.5% of business leaders have already started planning for the future, with either already adopting a cloud-based solution or are planning to within the next 2 years. A further 82% of IT professionals agree that a cloud system isn’t just a great solution, but absolutely essential to remaining competitive. It is this drive to be competitive that is pushing companies towards cloud PBX, recognising the importance of combining both security and efficiency. The pandemic and the adoption of hybrid working has accelerated the growth of cloud PBX as it is vital to secure remote devices and communication. In the future we will be sure to see this growth remain consistent as we continue to adapt, both in terms of the logistics of the workforce and technology, to an ever changing and unpredictable way or working.