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Cloud computing is an emerging technology for effective resource utilization. Its virtualization concept offers vast improvement in reliability, scalability, performance and security. It reduces a huge sum of maintenance cost for any product. It empowers growth of company with less resource usage. It acts as a replacement for most of the hardware devices. The Cloud computing has reached the telephone services also. The PBX phone system is a best example for the cloud computing advancement. Earlier the PBX phone services were made possible by connecting each extension through physical cables. But now the invention of VoIP PBX phone service is a cost effective replacement for Physical PBX Phone system. The implementation of cloud computing in the VoIP PBX phone services improves the efficiency and even it has become a solution for the PBX Phone service of small scale companies. The companies can have a single toll free number where unlimited number of users can be connected to that toll free number using extensions. The cloud based VoIP PBX system will receive the call I toll free number and it connects to the cloud to identify the user information and then the call will be forwarded to the extensions available in the cloud. Even international calls became cheaper after the invention of VoIP PBX Phone services.