Cloud-Based Phone Systems vs VoIP

In the world of the Internet, businesses of all kinds are shifting to new ways of running their telecommunications and leveraging the power that the Internet has to offer. In this space, there is often some confusion about the differences between Cloud-based phone systems and VoIP, and we thought we’d use this article to distinguish between the two terms.

 

What is VoIP?

VoIP is a technology that allows you to make voice calls over the Internet rather than over traditional analogue phone lines. The technology itself converts analogue voice into digital data which can be sent over an Internet connection or over WiFi.  VoIP has completely revolutionised global communication and remains a key component of modern digital telecoms.

 

What is a Cloud Phone System?

Cloud-based phone systems can be built using different technologies such as VoIP or SIP Trunking for example. Primarily Cloud phone systems tend to use VoIP and can sometimes be referred to as hosted VoIP or a Cloud PBX. With a Cloud phone system, calls, routing and features are all hosted on Cloud servers compared to on-premises phone systems where these functions are handled via local servers or an on-premises PBX device. 

When you use a Cloud-based system, the VoIP service itself is hosted on a Cloud server and is managed by the same provider offering the VoIP services. Instead of having one vendor hosting calls and another provider or device handling the features, both functions are housed under the same roof.

 

The Difference Between VoIP and Cloud-Based Phone Systems

VoIP is a technology. Cloud phone systems use VoIP to facilitate sending calls over Internet connections all over the world. A VoIP phone system and a Cloud phone system are essentially the same thing, however a Cloud phone system may use other technologies such as WebRTC or SIP Trunking when providing their Cloud-based service. For businesses looking to move from copper landlines and analogue phone systems, a Cloud-based service will offer a variety of benefits. 

 

Advantages of Cloud-Based Phone Systems

Cloud-based phone systems have transformed how businesses structure their internal and external communications. Gone are the days of installing large voice infrastructure that quickly becomes obsolete. In the modern era, Cloud-based phone systems have become the go-to tool for organisations that want to be agile and forward-thinking.

Here are just some of the key advantages of a Cloud phone system.

Fast Feature Updates

Cloud-based phone systems are, by their nature, programmatic, meaning that changes can be made and rolled out very quickly and efficiently. Instead of being stuck with legacy systems that grow more underpowered over time, your hosted VoIP provider will roll out frequent updates to upgrade and improve the service. This also means that you get access to new features the moment they arrive; hosted VoIP products are always evolving and adapting to the times.

No Hardware Required

A Cloud phone system doesn’t require significant hardware investment because the entire system is run using software. Your users can utilise any device that has an Internet connection. This means your upfront investment is much lower and you can adapt and evolve with the times as the years go on. This is more robust, convenient, and fluid, giving your staff the flexibility they need to do their best work.

Get a Stable, Reliable Service

Cloud-based phone systems also have powerful distribution and load-balancing functionality that helps to maintain superior stability and reliability. For a phone system that needs to scale, such stability and reliability are crucial, since issues compound as the system grows. The last thing you want is for customers to have a poor experience, and a Cloud-based system can help you to anticipate problems and manage them effectively through proper load balancing.

Work From Any Location

As Cloud phone systems aren't linked to a physical location, extensions can follow employees wherever they go. This provides greater flexibility for both remote and hybrid workers, who will be able to successfully make and receive calls from both the office and from their homes. 

These are just a few advantages of a Cloud-based phone system, but they make a significant difference to how you interact and communicate with colleagues and clients. When compared to a traditional, on-premises PBX, a hosted Cloud PBX is in a class of its own, which is why businesses of all sizes, from startups through to large enterprise and even franchise businesses, have moved so aggressively in this direction.

Futureproof your business phone system, leverage the power of VoIP and the Cloud, and beat the 2027 PSTN switch off with Yay.com. We have worked hard to build telephony solution that can help your organisation level up its communication, both internally and externally. Try us out today and discover why we're the phone system for growing businesses.