Cloud Phone Systems vs VoIP

For all intents and purposes, cloud phone systems and Voice Over Internet Protocol (VoIP) systems pretty much provide you with the same phone system functionality, and they can be considered to be interchangeable terms. With that being said, it’s still worthwhile to take a close look at each one of these terms to see what is entailed, so that any subtle differences can be highlighted and understood.

Voice Over Internet Protocol (VoIP)

A Private Branch Exchange (PBX) is a hardware system that manages all the routing and switching of phone calls between a telephone network and any business location. Long ago, a PBX was actually a living, breathing person, i.e. a switchboard operator like you might see in a movie from early 20th century times. In fact, its name was derived from the way operators would have to switch several different telephone lines in order to connect callers with the parties they were trying to reach.

VoIP services were developed in an effort to completely replace analog PBX systems that functioned on the technology of Plain Old Telephone Service (POTS). While both analog and digital PBX phone systems have become tremendously popular during the twentieth century and beyond, much of the physical hardware and the proprietary wiring needed to use a PBX system has become more or less obsolete.

VoIP does away with the need for this kind of hardware and wiring, since it’s driven totally by a local computer network and its Internet connection, with those two components already being in place. The features that were at one time exclusive to PBX systems and relatively expensive to budget, are now all features that are readily accessible through Voice Over Internet Protocol, and at a much more affordable rate. These features include many of the things we’re all very familiar with, such as multi-party conferencing, phone line queues, and auto attendants.

VoIP took over these features as well as a number of others, improved upon them, and then made them much more accessible and more cost-effective to customers desiring those kinds of services. VoIP has the capability of reducing all kinds of costs associated with maintenance and repairs, equipment, and phone charges, all while making requests for upgrades and support much simpler. VoIP has the effect of leveling the playing field for small businesses, so that they can compete with large corporations and have the same opportunity for growth and success.

Cloud phone systems

The term cloud systems is often used interchangeably with Voice Over IP, and it’s very common to see these two terms in the same sentence and referring to the same type of service. When you talk about a service being on the cloud, it’s another way of referencing how a VoIP provider delivers services which allow for interaction with users. All cloud phone systems are an extension of hosted services, in the sense that the VoIP provider actually maintains and owns all the hardware associated with the phone system.

The cloud is merely a way to mentally visualize how your information is being stored, as opposed to physical hardware that used to be stored in a closet on your premises. Cloud phone systems will incorporate Voice Over Internet Protocol into Unified Communications, which is a term that references the ability or devices having an Internet connection to potentially be converted into telephones. Some examples of this are smartphones, tablets, laptops, and web phones.

What are the differences between Business VoIP and Cloud phone system?

Often people think . Despite the fact that both the business phone systems help lowering your TCO (total cost of ownership) than an on-premises phone system, they are not equal.
The differences are significant between business VoIP and a cloud phone system, most probably in terms of functionality. The major difference is that the virtual PBX is an automated answering system, which only directs the call, whereas the hosted business VoIP phone system is a complete professional phone system.
Deciding the right cloud phone system is crucial for a successful business. Several factors plays important role when determining the that Business VoIP (Virtual PBX) and Cloud Phone Systems (Hosted PBX in the cloud) are one and the same best cloud phone solutions. Each cloud phone system providers has their own strength and weaknesses. However, before you come to a decision, you need to find out exactly what output do you expect from the hosted business VoIP phone system or cloud phone system provider’s solution.
What We Needed for our Business?
1. Phone solution especially designed for small & medium sized businesses;
2. Parallel features & collaboration tools available for every user;
3. Freedom from desk phone;
4. Time and resources savings on phone hardware management;
5. To eliminate hardware costs;
6. High scalability, a system that grows with us;
7. Should support all kinds of UC users;
8. Finally, a business phone system that empowers your business.
Why Move Your Phone System into the Cloud?
There are several reasons why businesses should transform their existing phone systems to the cloud phone systems or hosted business VoIP phone system. Some of them are:
1. The cloud phone solutions are specially designed keeping all sized businesses in mind. It provides all the powerful UC features at a very affordable cost.
2. No need to sacrifice on features and flexibility. A cloud-based phone system offers parallel business-class features for every user such as call forwarding, unified messaging (transcribe voicemail & sent to email inbox), call hold, contact list synchronized with office phone system, follow me, three-way conference, auto attendant and many more.
3. Softphone is one of the wonderful UC applications that enable the mobility features for users. It detaches you from your office desk phone allowing you to make and receive calls along with extension dialing right from your Android & iOS mobile & desktop devices.
4. It saves your company’s valuable time and resources by taking off the hardware configuration and management burden from your shoulders. Additionally, lower your total cost of ownership (TCO) & minimizes OPEX.
5. Get running your business phone system in the cloud with zero upfront hardware costs (major CAPEX savings).
6. Cloud phone systems are designed to offer high scalability as new users can be added easily without need to buy additional hardware.
7. The cloud-based VoIP systems are fully compatible and support all kinds of users such as System Administrator, Office Manager, Receptionist and Mobile Worker.
A hosted business VoIP phone system empowers your business with its unique on-number reach that makes you available at all the time on multiple devices.
Quality of Service
A bad service can hammer the VoIP calls. Often, the voice quality and clarity depends on the Internet speed used to connect the systems in the cloud. It’s always recommended by cloud business phone system providers to avail high speed internet connectivity when choosing a cloud-based VoIP solution for a business.
Failover
The failover systems in the cloud are monitored 24×7 to ensure the redirection of PSTN traffic within seconds in the event of disastrous hardware or software failure, providing you consistency and reliable service.