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What is the Difference Between Cloud and Traditional PBX?

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The basic difference lies with the setting up of the two business phone systems. In a Traditional PBX method, an on-premises phone system is linked to all the phone extensions and further connected to PSTN lines. They are usually a CapEx purchase. In contrast, a cloud-based business communication system offers more flexible options. A cloud-based PBX system is also called Hosted service in which the main element to connect extensions is the Internet. In this setup, the company usually has to pay for the softphones or the endpoints. In addition to this, the cloud Hosted PBX service providers charge a monthly fee for the services. The Hosted PBX approach is, thus, much of a cheaper alternative to the traditional PBX system. There is no initial installation cost of PBX maintenance costs. The system is better scalable for the company than in the case of a traditional PBX. Hosted PBX offers remote working and business communication that is not defined within the office walls.

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