Like the name implies, cloud phone systems deliver PBX functionally as a service through the cloud. This means that users get the same calling features of a traditional phone system—call routing, call recording, call transfer, call forwarding, call waiting, auto-attendant, and more—while using voice over internet protocol (VoIP) to facilitate calls over the internet. This is far more cost effective, flexible and scalable infrastructure. Plus you only pay for what you use, not a cent more. Additionally, hosted PBX usually offers other capabilities for better business communications. RingCentral, for example, is more than just a regular business phone system. We also integrate the features of team messaging, HD video calling, business SMS, eFaxing, IT and line of business analytics, embedded apps, and APIs to give you an all-in-one communications solution that works according to your business needs.