Eminent computer scientist and software executive Paul Maritz famously said, "Cloud is about how you do computing, not where you do computing."

Another great quote about cloud is of Marc Benioff, the CEO of Salesforce.com, who said, "The cloud services companies of all sizes. The cloud is for everyone. The cloud is a democracy."

Both of them couldn't have been more on point! Contemporary businesses are no more confined just to one location. A majority of companies operate across locations and they need to make sure that their teams and departments stay connected with each other.

By using cloud-based communication systems such as cloud-based IP PBX software, organizations can ensure seamless communication across various locations. Cloud-based communication systems are a great leveler indeed.

In this blog post we will discuss the benefits of cloud-based IP PBX for seamless communication across locations.

Understanding Cloud-Based IP PBX

The cloud-based IP PBX is the evolved version of traditional PBX. In the late 90s and 2000s, the advancement of the world wide web and Voice over Internet Protocol (VoIP), laid the foundation of cloud-based IP PBX, as we know it today.

Over the years, VoIP technology and virtual servers replaced the switches and wires in traditional PBX systems. And since then, there has been no looking back.

In recent years, cloud-based IP PBX systems have posted robust growth and emerged as one of the best communication systems in the present time.

IP PBX systems are mainly used as inbound and outbound call center solutions by small and medium businesses, large corporations, as well as commercial cloud telephony providers worldwide.

The recent report by Market Research Future revealed that the market size for cloud-based PBX is projected to grow at a compound annual growth rate (CAGR) of 18.52 percent from USD 18.43 billion in 2024 to USD 71.75 billion by 2032.

The cloud-based PBX market was valued at USD 15.17 billion in 2023 and it registered an increase of USD 3.26 billion in one year.

As per a recently-published stat, hosting IP PBX is expected to grow by 20 percent by 2027.

Benefits of Cloud-Based IP PBX 

The cloud-based IP PBX systems are extremely beneficial for organizations that have multi-location operations or teams working from different locations and timezones.

1. Cost Savings

Cloud-based IP PBX systems are far more cost-effective compared to their traditional counterparts. IP PBX uses VoIP to manage and route internal and external calls. Depending on which study you read and believe, VoIP can save communication costs by up to 50 percent!

That's not all. Cloud-based IP PBX systems are even more cost-effective. As per a study by Microsoft, 82 percent of businesses reported cost savings after migrating to the cloud. Another stat published in 2021 predicts the cost of cloud telephony is predicted to drop between 3 percent and 5 percent every year. Businesses using cloud-based IP PBX can save substantial amounts of money. As per Nextiva, businesses that used cloud-based customer service centers saw IT support costs go down by 15 percent.

2. Robust Security

Can cloud-based systems and security go hand in hand? Certainly. A study by Salesforce revealed that 94 percent of businesses experienced a security improvement after they switched to the cloud.

Cloud-based IP PBX systems are extremely secure when properly configured, encrypted, and updated regularly. When you choose the right cloud-based IP PBX system provider, you can be assured of robust security and seamless communication across locations.

3. Massive Scalability

For businesses, the ability to scale up or down depending on the demand matters a lot. The scalability is applicable to machines, applications, features, and locations involved. Cloud-based systems are highly scalable. They allow businesses to scale up or down with ease.

By leveraging sophisticated cloud-based IP PBX systems, businesses can add a massive number of extensions. Some cloud-based IP PBX systems allow businesses to add more than 50,000 extensions!

4. Remote Working Capabilities 

It should come as no surprise that cloud-based communication systems enhance remote working capabilities. A survey of 800 organizations revealed that over 94 percent of organizations with over 1,000 employees have a lot of their workloads in the cloud.

When businesses leverage advanced cloud-based IP PBX systems, they empower their team to work from anywhere without worry. Cloud-based IP PBX systems don't need any specialized hardware and equipment. A reliable and stable internet connection is sufficient enough to facilitate seamless communication and collaboration.

5. Reliability and Uptime

One of the biggest advantages of using cloud-based systems is the reliability. No matter how worse the external situations are, the recovery of cloud-based systems is much faster and simpler compared to on-premise systems. Be it during natural disasters or human-made ones, organizations that use cloud-based communication systems can bounce back much more effortlessly than their counterparts that use non-cloud systems.

Sophisticated cloud-based IP PBX systems offer massive reliability. Businesses that have multi-location operations need not worry about downtime or interruptions. For instance some cloud-based IP PBX software are engineered in such a way that users can be assured of 99.99 percent uptime.

6. Cutting-Edge Features and Auto Updates

Cloud-based systems come equipped with a wide array of cutting-edge features, and the best part is, businesses don't have to worry about updates. The features are updated automatically. A software provider worth its salt sees to it that the feature updates are seamless. 

Sophisticated cloud-based IP PBX software solutions come with multiple advanced features such as Interactive Voice Response (IVR) systems, skill-based routing, auto attendant, least cost routing, call forwarding, call recording, and more.

7. Simplified Maintenance

As a business owner, you have a lot of things to look after. Your core operations are going to require unwavering focus, undivided attention, and unrelenting efforts. It would be prudent to delegate the maintenance and upkeep activities to professionals.

Businesses that use cloud-based IP PBX systems don't need to go through the hassles of maintaining communication systems. They get to focus on their core activities while their cloud-based IP PBX providers take care of maintenance and upgrades. 

All In All,

Since their advent, cloud-based IP PBX systems have transformed the way businesses communicate. They have proved to be a boon for organizations that run multi-location operations.

Businesses that have multiple branches across locations or a distributed workforce can take the help of sophisticated cloud-based IP PBX software solutions to streamline their intra-team and inter-team communication.

As an entrepreneur or a senior professional in a multi-location business, you must make sure that you choose the right cloud-based IP PBX software provider and leverage their solutions to level up your communication game.