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A cloud-based phone system is a business telephone system based on VoIP (Voice over IP) hosted by a third-party cloud phone service provider. Such a system works by breaking the voice of the caller into digital packets of small sizes. These packets are transferred to the recipient over the internet in the form of data. A cloud-based Private Branch Exchange (PBX) is used to route the call made through a traditional phone that is plugged through a VoIP adapter. In other words, a cloud-based phone system is a lighter, hassle-free, and less expensive version of the traditional PBX phone system.

Cloud telephony is a part of cloud communications. Cloud communications are Internet-based voice and data communications where telecommunications applications, switching and storage are hosted by a third-party outside of the organization using them, and they are accessed over the public Internet. Cloud services is a broad term, referring primarily to data-center-hosted services that are run and accessed over an Internet infrastructure. Until recently, these services have been data-centric, but with the evolution of VoIP (voice over Internet protocol), voice has become part of the cloud phenomenon. To answer your question specifically, cloud telephony refers specifically to voice services and more specifically the replacement of conventional business telephone equipment, such as a Private branch exchange (PBX), with third-party VoIP service.

Cloud Telephone System Advantages:

  • Lower costs
  • Increased accessibility
  • Complete portability
  • Higher scalability
  • Advanced features for small and large teams
  • Clearer voice quality
  • Supports multitasking
  • More flexibility with softphones