Hosted cloud private business exchange (PBX) originated from the good old, manually operated switchboard for routing office calls systems. This phone network installed within an office allows workers to communicate with each other and with others outside the workplace.

The PBX has come a long way with the arrival of the internet in the 1990s, which gave birth to Internet Protocol (IP) PBX, eventually morphing into Voice Over Internet Technologies (VOIP) and UCaaS (unified communications as a service).

The Downside to Wired Phone Systems

The era of the wired telephone network, however, is fading, paving the way for cutting-edge technologies like VoIP, UCaaS, and the Hosted Cloud PBX. Companies that continue to use wired phone systems face some challenges:


Telephone signals travel through cables attached to poles, which are exposed in the open and susceptible to inclement weather and other disturbances. This causes severe disruption in voice quality over the wired telephone networks, sometimes breaking down the entire system.

No Mobility

Even if you use a cordless phone attached to a wired network, the reception range would be limited. When users go beyond this range, the signal becomes very weak. This severe handicap compels users to physical stay within the network.


The cost of making long-distance calls over a wired network is expensive. Call your overseas clients, suppliers, or colleagues through a wired phone network could rack up huge bills.

Loss of Privacy

For experienced hackers, it is easy to tap into a wired network. Anyone can listen in on your communication if you are sharing the same line with several individuals.

Cloud PBX: Wholly Digital

Cloud PBX, also known as hosted cloud PBX or a virtual PBX, is an advanced system of digital communication that is wholly internet-based. This system can store or host all the data and the accompanying software in the cloud.

Many businesses have turned to this mode of communication due to its numerous advantages, one of which is its ease of use: The service provider houses the PBX equipment and provides you phone services. You simply plug your phone into the router, which is connected to the service provider’s server and the system performs all the usual phone communication functions like call transfer, call routing, voicemail, calls waiting, etc.

Weighing the Pros and Cons

To help you decide on whether a hosted cloud PBX is the best thing to support your business, let’s consider both its good and the not-so-good characteristics:


Low Cost

Hosted cloud PBX is cheaper to deploy and use in comparison to its traditional counterparts. What’s more, you only need to utilize your existing internet service to use the hosted cloud PBX.

PBX Equipment

You must store traditional PBX equipment in specially designed spaces or rooms in your organization. It can be problematic if you are short of space and may incur extra costs to create storage areas. Hosted cloud PBX has no such issues as the entire equipment is with the service provider.

Maintenance Expense

On premise, traditional PBX equipment requires costly repair and maintenance services regularly. In hosted cloud PBX, there is no such expense because there is no equipment on premise.

Cutting-edge Features

Hosted cloud PBX offers many attractive services that are aligned with today’s competitive business environment. Some of these include Softphone for Mobile, Conference Bridges, Ring Groups, E-fax, Enhanced Queues, IVR, Call Recording and Playback, Call Monitoring, Call Screening, and CRM integration.


Cloud PBX systems are very dependable and are mostly free from interruptions, except perhaps for extreme circumstances. The absence of wires and cables makes it even more reliable.


Internet Connection

As hosted cloud PBX is dependent on the internet, you need to ensure that your internet connection is reliable and fast. If your internet has is slow, frequently breaks down, or lags, then you won’t be able to enjoy the services of a hosted cloud PBX.

Security Threats

The entire system runs on the internet and is prone to cyber threats and online security breaches. It is best to ask your hosted cloud PBX service provider about its security protocols to ensure the protection of your data.

Inclusions of Hosted Cloud PBX service

Generally, a hosted cloud PBX service includes:

  • Unlimited bandwidth and extensions
  • No setup fee
  • No hidden charges
  • Option to upgrade to paid services anytime
  • Security of data

The NST Difference

With NST as your service provider of hosted cloud PBX, the real difference here is redundancy and portability, enabling your business to continue operating even when your physical premises are unavailable. NST is a technology solutions provider firm that can deliver a full range of hosted cloud PBX services to give our customers peace of mind.

To learn more about our Hosted Cloud PBX services, visit any of our offices in Melbourne, Sydney, and Perth or send us a message today.