Impact of COVID-19 on the Global Cloud PBX Market
The global cloud private branch exchange (PBX) market has been negatively affected in recent months due to the outbreak of the pandemic, COVID-19, in December 2019. The pandemic outbreak has resulted in numerous countries imposing lockdowns and shutting down businesses except for essential services (allowed with minimum workforce). Cloud PBX is a part of cloud computing. Cloud computing refers to the act of storing and accessing data over the Internet rather than on a computer or other hard drive. PBX is the technology behind a telephone provider’s ability to route calls. The combination of cloud and PBX is simply a phone system based over the Internet, which is also referred to as an Internet-based or VoIP phone system. Several businesses have increased their focus on profitability and reduced their expenses in PBX, decreasing the demand for cloud PBX as a result. In addition, several businesses have increased focus on their core competencies and closed a few offices to cut their expenses, which is decreasing the demand for cloud PBX. However, the demand for cloud PBX is anticipated to recover in the coming months as numerous countries have begun to remove the lockdowns in a phased manner. The governments of several countries across the globe have granted permission to several businesses to restart their businesses keeping in mind the safety guidelines.
A cloud-based phone system has a cost advantage in overall up-front costs. The service fees for a cloud-based system are the key cost factor, as they eliminate the cost of phone lines, hardware and software upgrades, and the redeployment of IT staff to manage other parts of the business. A cloud-based system helps alleviate the cost burden. Operations and administration hold the biggest cost savings for a cloud-based phone system over an on-site PBX. Recently, a rising need for integrating CRMs with cloud PBX software to help streamline business operations has been witnessed in the global market.
In some cases, if the cloud PBX software is not set up, the integration of the PBX system with CRM has a problem. There is a need for separate integration specific software for integrating the cloud PBX systems. Nowadays, each customer site has unique needs, prompting providers to offer customizations. At the same time, it is a big task to have an offering that is compatible with each client. This leads to slow customer turn-ups and ongoing issues if the cloud PBX product does not fit the customer site. In the last few years, several IT companies have been adopting cloud computing in their network infrastructure to establish a better and efficient work balance. Cloud PBX not only reduces the complexity in the available networks but also allows the cloud service providers to host multiple virtual networks without any need for common separation isolation methods. In the long run, the demand for cloud PBX is anticipated to propel owing to increasing adoption, constant innovations, and continuous advancements in technology.
Source: MRFR Analysis
Source: MRFR Analysis