What are PBX, VoIP, and Cloud Calling? And which is right for my business?

Rogers Business

A five-minute primer on how to choose the right phone system for your business.

If you're in the market for a new business phone system, chances are you've run across some technical terms and acronyms you may not be familiar with, such as cloud calling, PBX, and VoIP. All you wanted were some business phones, and suddenly it feels like you need to be an IT expert.

That's why we're here to help. In this guide, we'll break down these terms in simple language, highlight their benefits and considerations, and help you determine which option best suits your business. Keep reading, and in just five minutes, you'll have all the information you need to make a confident decision.

What's the difference between PBX, VoIP, and cloud calling?

Business phone systems generally fall into three distinct boxes: private branch exchange (PBX), voice over internet protocol (VoIP), and cloud calling. There can be a bit of crossover between these concepts and technologies, but here are some basic definitions and differences.

Private branch exchange (PBX)

This is a physical switching system that connects desk phones within a company on the same telephone network. It uses traditional landlines, though some newer hybrid models make use of the internet to add more advanced features and improved flexibility. It's physically installed at your site and typically maintained by your IT staff.

Voice over internet protocol (VoIP)

VoIP is a group of technologies used to make calls over the internet. It relies on the internet rather than traditional landlines, but will likely require some local hardware, such as IP desk phones. Any necessary backend hardware and software is typically installed and maintained by a service provider.

Cloud calling (or cloud telephony)

This is similar to VoIP in that calls are made over the internet, but the service is hosted in the cloud. It eliminates the need for landlines and local hardware, including desk phones. It's hosted and maintained by the service provider.

What are the benefits and drawbacks of each system?

Now that you know the basics, let's take a quick look at how these systems stack up. In general, VoIP and especially Cloud calling are better than PBX in most ways, from cost to feature sets, though PBX still has some advantages, such as stability when internet outages occur and reliable call quality/clarity.

	PBX	VoIP	Cloud calling
Costs	Initial expenses for hardware/installation and ongoing costs for maintenance and phone lines make this a more expensive option.	You'll pay a monthly subscription fee per user and need to buy desk phones, but it's generally more affordable than PBX. Additional charges may apply for calling the Public Switched Telephone Network (PSTN) when using free VoIP calling services.	This is likely the most cost effective, since you'll simply pay a monthly subscription fee per user. Additional charges may apply for calling the Public Switched Telephone Network (PSTN) when using free cloud calling services.
Features	Provides access to a range of basic calling features, such as transfers, voicemail, and hold messages.	Provides access to basic as well as advanced business calling features (such as voicemail-to- text), plus video calls/conferencing.	Provides access to basic and advanced business calling features, plus video calls/conferencing. It can be integrated with other comms platforms, like Microsoft Teams.
Scalability	Adding more users takes time and results in additional hardware and landlines expenses.	Simply add more users to your subscription plan, then purchase and install additional phones.	Instantly add users by modifying your subscription.
Compatibility	Compatible with specific hardware and desk phones.	Compatible with a wide range of IP desk phones and mobile devices.	Compatible with virtually any mobile phone, tablet, desktop, and laptop.
Flexibility	Unless it's one of the newer hybridized PBX models, access is restricted to the office.	Make calls from IP phones and use other system features on any device with a web connection.	Make calls and use all system features from any device with a web connection.
Reliability	Very high, though a power outage or hardware failure will severely impact the system.	Dependent on both power and the internet.	Primarily dependent on an internet connection (you can use your battery-powered mobile device in the event of a power outage).

Choosing the right phone system for your small business

Each of these business phone systems performs basic tasks—making calls, transferring calls, receiving voicemail, etc.—very well. But in more and more cases, a cloud calling system makes the most sense for small and medium-sized businesses.

A cloud calling system like Rogers Advantage Voice is incredibly flexible and can easily scale up or down as your business evolves. It's perfectly suited for growing remote and hybrid workforces, providing the same advanced features to staff wherever they are and on whatever device they choose to use. You can also mix and match seat types to meet your specific business needs. Plus, it can integrate with Microsoft Teams for seamless messaging, video calls, conferencing, and data sharing between team members and clients.

But that’s not all—Rogers Advantage Voice also includes Fixed-Mobile Convergence (FMC), a game-changing feature that ensures your business calls move seamlessly between desk phones and mobile devices. No more missed calls or juggling multiple numbers—your team stays connected, whether they’re at the office, on the road, or working remotely. With FMC, your business phone and mobile phone function as one, giving you:

A single bill covering all your business communications—fixed, mobile, and cloud calling system
Unified voicemail and directory services across all devices
Fewer IT headaches since it’s a managed service
Presence integration to see who's available at a glance
A single portal for administration, making it easy to manage users and settings

Run a health clinic or law firm? A cloud calling system like Rogers Advantage Voice is ideal for virtual appointments by both phone and video. Operate a retail business, such as a chain of pizzerias or auto dealership? You'll deliver great customer service and never miss a call thanks to advanced features like auto attendants, voicemail-to-text alerts, call hunt groups, and custom hold messages. Manage a small shop, like a flower store or convenience store? Cloud calling can be scaled down to just a couple of lines and no hardware, making it extremely affordable.

Cloud calling through Rogers Advantage Voice is a complete business communications solution tailored to meet the needs of your specific business. If you're ready to learn more, contact a Rogers business specialist today.