Cloud phone system vs traditional PBX
Short answer: for most Australian small and medium businesses, a cloud phone system (hosted VoIP) wins on cost, flexibility and resilience. A traditional on-site PBX still suits some specific cases. Here's how to decide.
What's the actual difference?
A traditional PBX is a physical phone system installed in your building. You buy the hardware, house it, power it and maintain it. A cloud phone system (also called hosted VoIP) runs in the cloud and reaches your team over the internet — through apps on phones, computers and browsers, or IP handsets. There's no box in the cupboard.
Side-by-side comparison
When a cloud phone system is the better choice
- You have remote or hybrid staff who need to work from anywhere.
- You want to avoid a big upfront spend on hardware.
- You're growing or changing and need to add/remove users quickly.
- You want disaster recovery so calls never get lost.
- You'd rather someone else handle maintenance and upgrades.
When an on-site PBX might still make sense
- You have unreliable internet with no backup connection.
- You've recently invested in PBX hardware and want to sweat the asset.
- You have specialised on-premise requirements (some can also be met with a self-hosted 3CX deployment).
The Wise Cloud Technology approach
Wise Cloud Technology's cloud phone system is built on the 3CX platform and priced at $29.95 ex GST per unlimited line, calls included. You get enterprise call features — IVR, queues, recording, disaster recovery and mobile/desktop apps — without the hardware, complexity or cost of a traditional PBX. We also port your existing numbers for free.
Cloud vs PBX — quick answers
What is the difference between a cloud phone system and a PBX?
A traditional PBX is physical phone-system hardware installed at your office. A cloud phone system (hosted VoIP) runs in the cloud and is delivered over the internet, so there is no on-site box to buy or maintain and staff can make calls from anywhere.
Is a cloud phone system cheaper than a PBX?
For most small and medium businesses, yes. A cloud phone system has little to no upfront hardware cost and a predictable monthly fee, while an on-site PBX needs a large upfront investment plus ongoing maintenance.
Can I keep my phone numbers if I switch to cloud?
Yes. Your existing landline and business numbers can be ported to a cloud phone system, so customers keep dialling the same number. Wise Cloud Technology includes number porting at no extra cost.
What happens to a cloud phone system if the internet goes down?
A good cloud system has disaster recovery built in. Wise Cloud Technology automatically diverts calls to nominated mobiles or groups if your internet or power drops, so you never miss business — something a traditional PBX cannot do on its own.
Is a virtual PBX the same as a cloud PBX?
In everyday use, yes. A virtual PBX, cloud PBX and hosted PBX all describe a phone system that runs on servers in a data centre instead of on hardware at your office. Your desk phones, mobile app and desktop app connect to it over the internet. Wise Cloud Technology’s cloud phone systems run on the 3CX platform and are hosted in Australian data centres.
What is the difference between UCaaS and a traditional phone system?
UCaaS (unified communications as a service) bundles business calling with other ways of communicating, such as video meetings, chat and presence, delivered from the cloud on a subscription. A traditional phone system is built mainly for voice calls, on hardware at your premises. A hosted 3CX cloud phone system is effectively UCaaS: a full business phone system with apps, video meetings and live chat built in.
Is a cloud PBX suitable for a larger business?
Often, yes. A cloud PBX scales by adding lines and users rather than buying bigger hardware, and it can join several sites into one system with calls overflowing between them. Very large or highly specialised setups sometimes still keep an on-premise system for specific integration or control reasons, so it is worth reviewing your requirements with a partner.
Not sure which is right for you?
Tell us about your setup and team, and we'll give you honest advice — cloud, on-premise or a mix.
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