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Microsoft Teams and Cloud PBX System - Know the Difference

If you are looking out for a business VoIP solution to help improve your daily business processes, you might be wondering - should I pick a Cloud PBX System or Microsoft Teams?

There are bundles of advantages and disadvantages of hosting your phone system in the cloud or going for Microsoft Teams when it comes to operating a business in Singapore. Don't make a hasty decision. Let us walk you through the pros and cons of each system to help you make an informed decision.

What is a Cloud PBX System?

Cloud PBX (Cloud-based Private Branch Exchange) is a virtual PBX system rooted on the internet, which automatically answers all calls and routes them to the right department or user extension. It provides the same call routing and management features of an on-premises PBX without the need for expensive hardware. It cuts down the upfront investments in telecommunications infrastructure because of how it is delivered entirely via the Internet and can be managed off-site. Meaning, for remote workers, the office is wherever they make it, as long as an internet connection is available. With this system, headquarters, branch offices, and teleworkers can all be unified, enjoying the same features and business continuity.


Because of how easy it is to add and assign business phone numbers to your team how much easier it is to equip your remote team with phone service, this system makes the onboarding of new employees that much smoother. Adding phone lines is a breeze, so new employees or departments don't have to wait to start calling up clients. The lack of maintenance is also a tremendous advantage of cloud PBX systems. System updates, network routing, adjusting VoIP codecs — it's all handled by the hosted provider. Leaving you all the time for what is actually important - better customer support.

As you scale your business to the next level in Singapore, researching Customer Relationship Management (CRM) software is a fundamental step. With the Cloud PBX system, your phone system can also integrate with other essential tools like your organization's CRM.


The very few downsides to this system are its heavy dependence on the internet and having no ownership of the phone system

What is Microsoft Teams?

Microsoft Teams is a chat-based collaboration platform complete with document sharing, online meetings, and many more extremely useful features for business communications. It is a fully functional communication and collaboration solution.


Microsoft Teams reduces your hardware dependency. It is available on a wide variety of devices, from different form factors to different operating systems. So, there is no need to invest in additional hardware. This reduces costs, and it means that there is no rip-and-replace needed if you are migrating to a new office/region. With Microsoft Teams, established businesses can port their existing numbers and new or smaller businesses can procure a fresh set of phone numbers from Microsoft.


However, there is a risk of vendor lock-in because it might be difficult to migrate away from an end-to-end Microsoft-driven communication ecosystem, when your hardware, software, and network connectivity is fully reliant on their service. The cost plan is also very complex - the telephony capabilities are only included in your license if you have an E5 plan, and you also need to purchase additional calling plans, which will cost you per user. With the Business Voice licensing, you can only assign unique numbers to a maximum of 300 users, which may not be sufficient for larger companies.

One of the biggest complexities when deploying Microsoft Team's Phone System comes down to the technical resources required for configuration and implementation - most companies are required to consult with a Microsoft Partner (Gold Level preferred), as well as having to run due diligence and selection processes on Telecommunication Service Providers who offer Microsoft Teams Integration'

It also requires a good and stable internet connection. And due to its limitations, it may require additional work from your IT team for it to run smoothly.

Businesses today must get more done with less. It's why switching to a cloud PBX system is a sensible investment. Whether you're a small 1-person company, a growing 10 people team, or an established business with over 100+ people, you can use business VoIP. Every business in Singapore will have its own sets of unique needs. Make your decision with Velox today.


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