Cloud PBX (Cloud-based Private Branch Exchange) is a phone system that operates in the cloud rather than using traditional on-premises hardware. It leverages VoIP (Voice over Internet Protocol) technology to handle incoming and outgoing calls over the Internet. Instead of physical phone lines, users connect to the Cloud PBX using IP phones, softphones (software-based phones), or mobile devices with dedicated applications. Cloud phone systems are hosted by service providers, eliminating costly infrastructure since they are billed on a flexible subscription plan.