5 Myths of Switching from On-Premises PBX to Cloud PBX

Updated on: 12 Feb, 2024
Cloud PBX Market

The transition from traditional on-premises PBX (Private Branch Exchange) systems to Cloud-based PBX solutions is becoming increasingly popular in business communication. This encouragement is fueled by the promise of enhanced flexibility, scalability, and cost-effectiveness that Cloud PBX solutions offer. However, many businesses still need to be more open to switching despite the apparent benefits due to prevalent myths and misconceptions surrounding cloud technology. Here are the five most common myths about moving from an on-premises PBX to a cloud PBX, with a comparative analysis between cloud PBX vs. on-premise and what cloud PBX, on-premises, and VoIP are. Let’s dive in!

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Here’s the scoop: According to marketresearchfuture.com, Cloud PBX Market Size was valued at USD 12.5 billion in 2022. The Cloud PBX market industry is projected to grow from USD 15.17 Billion in 2023 to USD 71.75 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 21.43% during the forecast period (2023 – 2032). Increased cost advantage and increasing adoption of cloud technology are the key market drivers enhancing market growth.

What you’ll learn

Ready to explore the intricate world of business communication technologies, focusing on On-Premises PBX, Cloud PBX, and VoIP? This journey will take us through the evolution of business communication, peeling back the layers to understand best practices and anticipate future trends. 

Now, let’s quickly look at what’s in business communication. 

What is On-Premises, Cloud PBX, and VoIP?

On-premises PBX systems: It has been the backbone of business communications for decades. These systems require physical hardware installed and maintained at your business location. While they offer control and customization, they need more flexibility and scalability of Cloud-based solutions.

On-premises PBX to a Cloud-based PBX

Cloud-based PBX and VoIP: Cloud PBX, or PBX in the cloud, refers to a phone system hosted and managed in the cloud rather than on physical hardware at your business premises. This modern approach to business telephony leverages Voice over Internet Protocol (VoIP) technology, allowing calls to be made over the Internet. Cloud PBX solutions offer flexibility, scalability, and a range of advanced features tailored to meet businesses’ dynamic needs.

Cloud-based PBX and VoIP

Why Is It Time To Switch from On-premises to Cloud PBX?

Are you considering switching to a Cloud PBX from an On-premises system? Let’s Discuss why it might be bright and tackle some common myths head-on. 

Myth #1: On-premises Solutions can offer enhanced stability compared to Cloud PBX solutions  

Assuming that their IT staff can promptly resolve any difficulties owing to proximity, some managers feel that managing connection and service for their PBX systems is more accessible when the infrastructure is On-premises. This misconception is based on the notion that On-premise PBX provides more control and instant troubleshooting since it is physically accessible. However, this viewpoint ignores the vulnerabilities these systems are subject to, such as power outages or extreme weather, which can interrupt service and completely deprive organizations of vital communication capabilities.


On the other hand, Cloud-based PBX systems, like those provided by Ecosmob, use Cloud computing’s capabilities to deliver more dependable and robust services. Cloud-based PBX solutions are more stable and reliable since they are hosted across several geographically dispersed data centers. For example, Ecosmob hosts its Cloud PBX services across three geographically redundant data centers. This configuration ensures that the phone system can immediately redirect through a different data center if one data center encounters an outage, providing continuous service.

Cloud PBX platforms monitor QoS to quickly identify, diagnose, and fix problems, guaranteeing peak performance. Moreover, Cloud PBX providers usually give strong Service Level Agreements (SLAs) that ensure a high uptime percentage. For instance, Ecosmob pledges an astounding SLA of 99.99% uptime, demonstrating its dedication to providing uninterrupted service with little disruptions. This degree of dependability frequently outperforms that of On-premise PBX systems, dispelling the misconception that they are more stable.

Myth #2: Cloud PBX Call Quality is Subpar

One common misconception is that Cloud PBX services need more voice call quality, including Cloud-based PBX and PBX in the cloud solutions. This concern stems from experiences with intermittent call disruptions, delays, and other quality issues, leading some to hesitate in switching to a cloud communications solution. The skepticism often arises from a few negative experiences with video calls, leading to a broader apprehension towards all internet-based communications.


In contrast, Ecosmob’s Cloud PBX solutions, leveraging Microsoft Cloud PBX technologies among others, offer Quality of Service (QoS) routing to guarantee superior call clarity on every interaction. QoS is a mechanism where network traffic is categorized and prioritized, enhancing the management and delivery of critical data. This strategic approach mitigates common network problems such as packet loss, jitter, and latency, elevating the overall call quality. Essential for both Cloud PBX business applications and personal use, this ensures that the call quality remains pristine with a stable internet connection.

Ecosmob’s Unified communication suite further enriches this experience by providing every user access to a mobile app and web softphone, integral components of modern Cloud PBX services. These tools are designed to function seamlessly over WiFi or mobile data, ensuring clear and reliable communication regardless of location. This flexibility is a cornerstone of Cloud PBX pricing and Cloud PBX software offerings, distinguishing it from traditional On-premise PBX systems. The distinction between hosted PBX vs. On-premise solutions becomes apparent in this mobility and quality of service, showcasing the advanced capabilities and advantages of Cloud PBX solutions.

Myth #3: Limited Features in Cloud-Based Telephony

Many businesses entrenched in On-premise PBX systems may believe that Cloud PBX solutions need to gain the advanced calling and meeting capabilities they have come to rely on. The concern extends to the belief that existing workflows are not seamlessly transferable to a cloud-based environment.


Contrary to these assumptions, Cloud PBX services, such as those offered by Microsoft Cloud PBX and leading cloud telephony providers, are inherently more adaptable and laden with features than their On-premise counterparts. Our Unified Communications solution, a prime example of Cloud PBX software, is designed to furnish users with sophisticated calling analytics and real-time live reports. It empowers our clients with profound insights into call quality and engagement, accessible instantaneously from anywhere. 

Regarding meeting functionalities, Cloud-based PBX platforms like Ecosmob elevate collaboration by consolidating all communication tools in one accessible spot. Whether initiating a conference call or hosting a webinar via the video platform, Cloud PBX ensures enhanced connectivity and collaboration. Furthermore, Cloud PBX pricing models are typically more scalable and cost-effective than traditional On-premise setups, offering businesses of all sizes a flexible and economically viable telephony solution.

Myth #4: No Control and Lack of Customization

A common perception among some managers is the belief that converting to a cloud-based solution like Cloud PBX means sacrificing control and customization. They worry that relying on an externally managed Cloud PBX system will leave them unable to make quick adjustments or modifications as needed.


This concern is far from accurate. Cloud PBX solutions offer extensive customization and control through user-friendly customer portals that provide tiered access. It allows designated users, whether you or your IT staff, to manage users effortlessly, adjust ring patterns, configure auto attendants, and much more. The most advantageous aspect is that these Cloud PBX services are accessible via any web browser, enabling modifications from any location.

With Cloud PBX software, you can manage your entire telecommunications infrastructure from a single interface. It includes not just basic adjustments like user and ring pattern modifications but also in-depth functionalities such as:

  • Tailoring user settings, office locations, and phone button configurations
  • Accessing comprehensive call logs and analytical data for insightful reporting
  • Managing call recordings with options to download or share
  • Customizing features at both individual and group levels
  • Modifying auto attendant settings for streamlined caller navigation
  • Creating and adjusting call queues to enhance call flow management
  • Activating voicemail processing services and adjusting user preferences
  • Setting up new voicemail accounts or greetings with ease

The Cloud-based approach simplifies the management of your telecommunication needs and provides transparent Cloud PBX pricing models tailored to businesses of all sizes. This shift from hosted PBX to Cloud PBX solutions marks a significant advancement in how companies can leverage telephony technology for improved efficiency and control.

Myth #5: Transitioning to Cloud PBX is Cost-Prohibitive

The initial outlay from an on-premise PBX system to a cloud-based solution may initially seem high, possibly increasing already high infrastructure costs. This perceived cost increase can deter decision-makers from switching to cloud-based PBX services. However, this perspective overlooks the substantial benefits that Cloud PBX offers, including enhanced freedom, flexibility, reliability, an array of features, and comprehensive support.


Research indicates that organizations embracing Cloud PBX can realize significant cost reductions, with potential savings nearing $200,000 in the first year alone. Such financial benefits are derived from various sources. By moving away from traditional systems, businesses can eliminate the ongoing expenses of maintaining and managing legacy hardware. This transition liberates IT personnel or those previously tasked with resolving telephony issues, allowing them to concentrate on more strategic initiatives. 

Cloud PBX solutions also facilitate a more flexible and obstacle-free remote working environment, increasing employee productivity. Companies have reported productivity gains of up to 21% regardless of size due to adopting Cloud PBX platforms, such as Microsoft Cloud PBX. These improvements, coupled with competitive Cloud PBX pricing and the scalability of Cloud PBX services, underscore the cost-effectiveness and operational advantages of migrating to a cloud-based telephony system over maintaining an On-premise setup.

How to Choose the Right Cloud PBX Provider?

Selecting the right Cloud PBX provider is crucial for a seamless change. Look for one with a solid rep, good security, all the features you need, and transparent pricing. And don’t forget about customer support – you want someone who’s there when you need them. Let’s deep dive!

  • Reputation and Reliability: Research providers’ track records, uptime statistics, and customer reviews.
  • Security Measures: Ensure the provider follows industry-standard security practices.
  • Feature Set: Verify that the provider offers the features and integrations your business requires.
  • Cost Structure: Understand the pricing model, including any potential hidden costs.
  • Customer Support: Wondering for PBX solution for businesses and service providers  with responsive and knowledgeable customer support.

By choosing a trusted provider like Ecosmob, businesses can navigate the transition to Cloud PBX smoothly, ensuring they remain competitive.

Embracing the Future with Cloud PBX

The move towards Cloud-based technologies, including PBX in the cloud, is becoming increasingly inevitable. Amid this shift, Ecosmob stands out as a beacon of innovation, providing businesses with state-of-the-art Cloud PBX solutions that effectively debunk prevalent myths surrounding cloud technology. Ecosmob’s solutions exemplify the tangible benefits of moving to a cloud-based communication system through their exceptional performance, reliability, and adaptability. In a nutshell, Jumping to a cloud PBX like Ecosmob’s isn’t just keeping up with the times; it’s about getting ahead with a system that’s reliable, flexible, and ready to grow with you. Don’t let those old myths hold you back. With Ecosmob leading, switching to Cloud PBX becomes not just a possibility but a promising reality for businesses aiming for the pinnacle of communication excellence.

Confused between On-premise PBX and Cloud PBX?


What is Cloud PBX, and how does it differ from On-premise PBX?

Cloud PBX, or PBX in the cloud, refers to a phone system hosted and managed in a cloud environment rather than on the business premises. Unlike On-premise PBX, which requires physical hardware and infrastructure On-premise, Cloud PBX solutions are delivered over the Internet and maintained by the service provider.

Is Cloud PBX less reliable than On-premise PBX?

One common myth is that Cloud PBX is less reliable than On-premise systems. However, Cloud PBX solutions often offer higher reliability due to redundant data centers and the network the provider manages.

Is the transition to Cloud PBX disruptive to business operations?

The fear of a disruptive transition process holds many businesses back. However, cloud PBX business providers specialize in smooth migrations, often allowing businesses to transition or run parallel systems to minimize disruptions gradually.

Are Cloud PBX services less secure than On-premise systems?

Security is a top concern for many businesses. Cloud PBX providers implement stringent security measures, including firewalls, encryption, and regular security audits, to protect your data and communications.

Can I integrate Cloud PBX with other business tools?

Integration capabilities are often underestimated when considering cloud PBX. Many cloud PBX software solutions, including Microsoft Cloud PBX, offer robust integration with CRM systems, email, and other business productivity tools, enhancing efficiency and streamlining workflows.

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