An Overview of  Cloud Telephony

Cloud telephony or cloud calling is essentially an online calling solution that uses your internet connection to facilitate business calls. This is a type of unified communication as a service (UCaaS), that can be integrated with CRM and other online tools like GSuite and Office 365 for advanced features and collaborations. 

The major advantage of having cloud telephony for your business over a traditional PBX system mostly boils down to the unification of platforms. We use Voice Over Internet Protocol (VoIP) based cloud calling facilities for managing clients, messaging, and emailing from a single platform. It increases mobility and scaling opportunities. 

What Is Cloud Telephony

In the past, when there were only PBX systems, physical bulky hardware needed to be installed in-house. From the calling to call routing, every other element of the network was required to have its own dedicated hardware. Although with automated PBX, this improved to a significant level, there still was a need of having an infrastructure to operate them. 

Cloud telephony takes the whole operation to the cloud. It sends data packets containing analog voice signals from the customers and the operator through the internet connection. In this way, application servers, IVR, and recording services are indulged for additional functionality. 

The need for hardware is also reduced. Now, with cloud telephony, only a stable internet connection and a headset is required to take and make calls. 

Relationship Between VoIP and Cloud Telephony

As most cloud telephony providers use VoIP to operate cloud telephony, there isn’t a difference per se. But, it all comes down to how VoIP technology is used. VoIP isn’t reliant on the cloud system to work, but cloud telephony systems are dependent on VoIP. 

Technically speaking, VoIP operates through packet-switch connections, whereas the traditional setups use public switched telephone networks (PSTN) to operate. The VoIP systems fulfill the traditional PBX features in addition to the functionalities that the business requires. 

To conclude, you can use VoIP with your already existing PBX model or you can embrace cloud telephony for faster and more reliable communication. 

Benefits of Cloud Telephony

Numerous benefits are associated with moving your telephony services to the cloud. Some of them are: 

Ease of Install

Cloud telephony is quite easy to install. In fact, the most hardship you may face while installing the cloud telephony services is to uninstall the existing PBX system. As the whole setup is internet-based, cloud contact center software can be configured and optimized without the need for any additional hardware. 

Moreover, depending on your organizational needs, your IT team can configure and change call settings through online dashboards. 

Cost Efficiency

Most cloud telephony services are subscription based. You may need to pay an increasing amount as you keep scaling. However, it’s much better than investing thousands on bulky hardware and PBX systems. The features offered by the cloud telephony services far outweigh the recurring payments. 

Your organization may have different branches in different locations and countries. For that, you need to invest in duplicate hardware and services for each of them. Therefore, it makes them costlier to install and maintain. With cloud telephony, you can get done with one single subscription that works on every other computer, mobile, and device that you need to use.  


Imagine having to change offices with literally hundreds of physical devices connected to each other with a network of wires. All of them are connected to a central server with more wires. With traditional PBX systems being bulky and immobile, you may as well ditch them whole while changing offices. It’s cheaper that way. 

Cloud telephony is completely reliant on the internet and doesn’t need any wired connections to operate. If you ever need to change offices, you just need to find a reliable internet connection and connect the devices to it.

Custom Features

PBX systems often are limited by their functionality. Although they have been fulfilling the standard demands pretty well for quite a long time, modern industries require more. With the increasing reliance on data, stats, and personalization, telephony services needed to be more functional than they ever were.

Cloud telephony bridges the gap between modern requirements and traditional calling facilities. It allows the users to operate within the frame of CRM tools and stay ahead of the competitors in terms of customer service and satisfaction. 

Increased Uptime

Until and unless there is a major catastrophe, your cloud telephony services shouldn’t be affected by longer than necessary downtimes. Being completely wireless, these services are only hampered when there is a network issue from your end. It’s easily mitigable by having a reliable internet provider. 

Moreover, your agents can connect to the service through any means possible. If a specific individual is required to handle a conversation, they can be reached even without being present at the office. 

Minimal Maintenance

Cloud telephony requires minimal to zero maintenance at your end. When you pay for the services, you also pay for optimum uptime and clarity. It’s the responsibility of your service provider to maintain a top-notch service throughout your period of subscription. 

Drawbacks of Cloud Telephony

Most drawbacks of cloud telephony systems are associated with the limitation of technologies and human resources. Some of them are: 

Technology Requirement

To use cloud telephony, you need to have workstations around your office. The workstations may be desktops, laptops, or even personal mobile devices. These are the minimum requirements for every office in 2022. However, they still count as an upgrade for smaller businesses that aren’t ready to shift towards digital means. 

Training Required

Making the shift towards digitization and cloud telephone requires training. Your agents, who were reliant on PBX systems for a long time, are expected to make the shift toward online dashboards quickly. They need to learn about managing the platform, using CRM tools, and managing the calls. 

Latency and Jitter

As the whole system is online, latency and jitters are quite common phenomena. It all depends on the location of the server and the internet connection. Moreover, these issues can influence the customer experience in a negative way. 

Location Info Issues

Emergency services like 911 and specific businesses require the exact location of calls to quickly determine the best course of action. With cloud telephony, the exact location of the calls is quite challenging to determine. 

The Bottom Line

Hopefully, you’ve understood what it takes to make the shift toward cloud telephony from bulky PBX systems. Although cloud telephony works on VoIP technology, they offer additional features that are absent in stand-alone VoIP services. 

The benefits of cloud telephony include mobility, cost efficiency, and increased uptime. Although a few, the drawbacks include required training, latency, and lack of location info. 

Sustainable Business Previous post Launching a Sustainable Business: 5 Earth-Friendly Ideas to Help You Start Your Dream Company
Next post Design of high-speed and long-life sealed bearings

Leave a Reply

Your email address will not be published. Required fields are marked *