You’ve probably heard of a PBX (Private Business Exchange) system by now. A PBX is a Private Branch Exchange phone system, used by corporations to route internal phone calls from the main company number. Until recently, these systems cost tens of thousands of dollars to install and maintain, and required a significant amount of physical hardware. Introduced a few years ago, business Voice over Internet Protocol (VoIP) technology is taking the traditional phone system by storm. And rightfully so.

A cloud based PBX system, or PABX system (Private Automatic Branch Exchange) is cost-effective, easy to use and extremely flexible. Instead of buying and maintaining expensive and cumbersome physical hardware, Vonage Business hosts your phone system in the cloud. Your VoIP phones immediately access your system as soon as they are plugged into an internet connection, and the cloud connects all the phones on your account together. Because our PBX/PABX systems are geared toward small businesses our customers don’t have to compete with large companies or residential customers for our support and attention. Vonage’s cloud-based phone system is perfect for small and growing businesses, due to its flexibility. Small businesses can start out as small as a sole proprietorship, but soon grow and add new employees. With a physical in-house phone system, adding new employees means physically changing the hardware of your system, which is costly and time consuming. With a cloud-based phone system, adding a new extension is simple, and can be done online almost instantly.

So how does a cloud-based PBX/PABX system work? Traditional in-house PABX systems used analog signals, transmitted as tones and electric pulses to deliver audio and route calls. Cloud PABX systems like that offered by Vonage use digital signals to transmit calls and routing information, instead of analog signals. This difference allows for Vonage to deliver phone service over the internet, instead of over phone lines. This means that both calling rates and features are much less expensive. At Vonage, you’ll enjoy similar features typical of a Fortune 500 phone system, only they’re included in the low flat monthly fee. Features like call forwarding, call waiting, conference calling, three-way calling, call block, voice mail to email, virtual receptionists, and more are included in our services.

At Vonage, we can port your number, allowing you to keep your existing office number if you wish. Set-up is simple and quick – our customers are able to install their phones and be up in running in 15 minutes or less. Aside from the cost-effectiveness and efficiency of a Cloud PABX system, small businesses also appreciate the portability aspect or VoIP service. Our customers can take their phones on the road and stay in touch anywhere there is an internet connection. As long as there is a broadband connection, then you’re able to call whomever, wherever, whenever.

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