The proliferation of Internet-based communications has made the transition to an IP-based corporate telephone system an unavoidable trend. Call Centers must then choose between PBX and cloud telephony implementation. The dispute has been raging for years and despite all of the marketing hoopla, there is no better alternative. Each alternative has essential distinctions as well as benefits and downsides, and the considerations will vary depending on the business.

When transferring one’s company telecommunications system, there is a lot of data to consider, and the first thing to ask is undoubtedly, what to choose? A cloud telephony or a locally installed PBX? This is determined by various criteria, including the company’s size, current infrastructure, and available budget.

In this article, we discuss the topic of cloud telephony vs. PBX as well as the right telco solution for your call center.

What exactly is a call center PBX?

If desired, a local PBX can be installed on a business server and maintained internally from start to end. For this form of telephony, the call center must have the necessary infrastructure, such as servers, networks, and devices, or incorporate it into their budget. A local PBX is best suited for bigger businesses with the resources and equipment to manage their system locally, as well as enterprises in industries requiring additional security and privacy.

Here’s what you should know about the PBX:

  • The end user has complete control over their phone system.
  • Ideal for big enterprises with the equipment, bandwidth, and network configuration to host their own phone system, Unified Communications, and VoIP call center services.
  • The end user has access to all phone system data and settings.
  • The user can still obtain assistance and maintenance from the reseller if he so desires.

What is cloud telephony?

The term “cloud” is frequently used to characterize service delivery. In other words, contact centers can host their communications system using a SaaS (Software as a Provider) subscription, with an external service handling administration, maintenance, and updates.

Here’s what you should know about cloud telephony:

  • The telephone is managed by a third-party supplier, and they are responsible for operation and improvements.
  • With cloud telephony, you don’t have to worry about network difficulties like bandwidth. This is especially crucial for firms that don’t always have enough bandwidth to meet their Unified Communications and VoIP requirements.
  • There is no need for a specialized staff member to manage the phone system, which saves money.
  • There is no need for training in phone system administration, no need to know how to construct an extension, and so on. Everything is handled by the supplier for the end user.
  • All upgrades are included in the maintenance fees and are performed automatically by the provider.
  • Cloud telephony also means reduced maintenance costs and more efficient use of staff time. It’s not just easier to scale, but also more flexible when it comes to adding new users.
  • Cloud telephony allows the same system to handle all the communication between the various parties involved in a telephone call. It allows the different parties to talk to each other regardless of their geographical location.
  • Cloud telephony may also include services such as phone systems, video conferencing, and live chat.
  • Cloud-based telephony enables a third-party operator to initiate orders, update settings, and make minor adjustments. This greatly reduces the need to constantly check and maintain the software, and therefore increases its reliability.
  • Cloud telephony reduces the risk of data leaks, since all the communications between the customer and the provider are stored in a remote data center.
  • The cloud also reduces the effort needed to add users. A system administrator has to deal with the phone hardware, set up the phone lines, configure it to accept extensions, and so on. In the cloud, the task can be completed by a single operator, who’s just as familiar with the hardware.

What is the difference between hosted and cloud PBX?

Now that you understand the key aspects of hosted PBX and Cloud telephony, you can easily distinguish their similarities and differences.

A hosted PBX system contains fixed features that cannot be increased or decreased. It also comes at a cost. As a result, it’s a suitable solution for a well-established organization with a stable number of employees and a consistent stream of data. A Cloud Telephony system, on the other side, is expandable and self-sufficient. This makes it an excellent solution for expanding call center.

CCaaS; CX; Contact Center Technology; Omnichannel

Many contact centers have used servers to keep their software systems running for decades with no problems. Today, however, we are discussing flexible technology in a digital environment that is always evolving. As a result, the debate is no longer limited to whether main or secondary data should be stored on-premises or in the cloud.

Contact centers must also evaluate a variety of criteria, each with a different cost/benefit/service level ratio. As a result, they may have a substantial impact on the viability of your future initiatives.

In this eBook, we compare cloud and on-premise contact center technology in terms of:

  • The benefits and drawbacks
  • Cloud various solutions
  • Migration methods
  • And things you should consider before migrating

6 reasons why cloud technology is so useful to contact centers

Check out the top 6 reasons why cloud telephony is so beneficial to call center business owners:

1.Simplicity, accessibility, and independence

By migrating your existing PBX system to cloud telephony, you will be able to manage your telephony more simply and from any location: linked phones, user data, reports, telephone answering service, and so on. Then, with a simple Internet connection, you may obtain access to your calls and data from anywhere in the globe.

Hosted solutions are accessible via a simple softphone or web interface from a PC, Mac, smartphone, or tablet. Users may change call forwarding settings with a few mouse clicks, while system administrators can change features like interactive voice servers and call grouping.

The most significant gain in your regular activities will be the increased autonomy. You no longer need to spend hours phoning hotlines or waiting for a technician to come and see you: the administration console allows you to be completely self-sufficient. You may alter your settings from anywhere: when traveling or even while in another country, adjustments can be done in real time and with great convenience to modify your call setup or to establish, suspend, or delete a user.

2. Regular updates

Because your communication is hosted in the cloud, your system will never become obsolete. Every new innovation or feature will be automatically updated in your cloud communication solution with your hosted telephone solution. Your digital transition will go smoothly.

3. Scalability

You won’t have to invest more if your organization has migrated to cloud telephony. Once purchased, your solution will be scalable and usable in your ecosystem, integrating seamlessly with your existing applications (CRM, ERP, …).

Furthermore, cloud telephony solution will readily fit your company’s and workforce’s future expansion. In less than 5 minutes, you will be able to add new users, call groups, or greeting pre-hangs.

4. Customized service

With a plethora of tools and call management options, you can tailor and adjust your switchboard to your needs and optimally disperse incoming calls.

For example, if an IVR system is integrated into the switchboard, you may build a menu of alternatives so that the client can select which department or even which agent he wants to speak with. It is also feasible to create a music queue with instructive messages that the consumer may listen to while his call is routed to the chosen extension.

5. Cost Control

Cloud telephony allows you to save money on your VoIP phone system without sacrificing quality. By providing limitless calls, it removes the expense of mobile and landline calls. You may also avoid the costs of maintaining your PBX with high failure rates. Finally, you can control your communication with a fixed monthly fee per user, allowing you to stick to your budget. All of the benefits of “Pay As You Grow” options.

6. Call transfer and recording

You may use the Cloud to transfer calls between external and internal extensions. You may also view recordings of inbound and outbound to monitor, evaluate, and enhance agent service.

Conclusion: How to pick between a cloud telephony and a local PBX?

The decision between a local PBX, or completely cloud-based telephony is heavily influenced by the call centers infrastructure and resources. A local PBX is an excellent solution if you have adequate infrastructure to satisfy network, security, server, and power needs and are prepared to use that equipment for communications. However, even if you purchase a package that includes support and maintenance from an external reseller, you will still want an Internet IT administrator to oversee the day-to-day maintenance of your PBX and let’s not forget the costs of maintenance.

A hosted cloud solution is unquestionably the way to go if you want to cut the cost of running such services. The only thing to consider is how much control you require over your communication system.

Depending on the resources your business has, you will be faced with a number of decisions as you look to configure and implement a cloud PBX. You must take into account different things such as the presence of a BYOD policy, how stable the Internet is in your geographic region, and what internal phone system your employees are already using.

With this list in mind, here are some important questions to ask before making the switch to cloud telephony.

Does my business have the IT resources to implement a PBX? If not, local PBX might be a better fit.

Is my enterprise composed of a small number of employees or is it a large organization with remote workers? If so, having a local PBX may not make sense.

Do I have employees who telecommute from time to time? You may be able to fit the cost of a cloud PBX into your current budget.

Do I have existing phone systems that I could move to the cloud? Most small business voice systems can be migrated to a hosted PBX, while most large enterprise telephony systems have too many components and are much more expensive to change.

Are there performance or network issues that prevent me from running a hosted PBX? If so, moving to a hosted PBX may not be a viable option.

Can I afford to outsource the actual system implementation to a cloud provider? The initial setup cost can be substantial, and you might want to handle the implementation yourself.

Do I have the in-house expertise to manage a cloud PBX? If so, then a hosted PBX might be a viable option.

To answer these questions, you need to take the time to ask as many people as possible, including partners, customers, employees, and contractors. Many of them will have different opinions and perspectives on the best solution for your company. If you are unfamiliar with the nuances of a hosted PBX, you need to ask more experienced tech-related professionals to provide their input on the topic.

The decision ultimately rests on you and your personal experiences. The reality is that choosing the best solution for your call center depends on how much you’re willing to spend, your business goals, and what technical requirements you’re able to meet.

Beyond the initial setup costs, hosted PBXs are significantly cheaper than a local PBX, and they eliminate many of the hard costs related to a system implementation. Although it might seem that cloud PBXs are overkill for many companies, consider the relative cost of a security breach, lost productivity, and the impact of a phone system disruption on your customers. When it comes to the cost of communications, there is no substitute for choice and flexibility.

At NobelBiz, we believe that telco solutions should be purposefully built for call centers’ needs. That is why our telephony solution NobelBiz Voice Carrier is:

  • Made specifically for the demands of the contact center sector.
  • The market’s most sophisticated telecom network.
  • Not a reseller, but a unique carrier-of-carriers.
  • Uniquely dependable infrastructure with several redundancies.
  • In terms of cost-per-minute, the most competitive telecom service.

With NobelBiz Voice Carrier you get:

  • The Lowest cost-per-minute in the industry: When you call in a geographical region served by numerous carriers, our network will automatically route the call via the most cost-effective route, ensuring the lowest possible cost-per-minute every time you call.
  • A Network designed for your call center needs: NobelBiz is not your typical telecom provider; it was created specifically to serve contact centers throughout the world. Every technological aspect is optimized for contact center activity: usability, compliance, price, and so on.
  • A Scalable and reliable Network: Our carrier-of-carriers network is likely one of the most modern options on the market, providing global coverage with built-in redundant servers and a 99.99% uptime guarantee across the board.
  • A Trusted Supplier: NobelBiz has its clients’ best interests at heart, and we cherish trust above all else. As a result, we are one of the few telecom providers for contact centers that do not bind our clients to long-term commitments. Our business model also does not need any minimum spending or any early termination penalties.