In the world of the internet, businesses of all kinds are shifting to new ways of running their telecommunications – 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 phone systems, and we thought we’d use this article to distinguish between the two terms.
VoIP is a technology that allows you to make voice calls over the internet rather than over traditional analogue phone lines The technology itself is quite broad in scope and is implemented in a variety of different ways. This means that the terminology can sometimes differ from provider to provider. Nonetheless, it has completely revolutionised global communication and remains a key component of modern businesses.
Cloud-based phone systems build on this core technology and are sometimes referred to as hosted VoIP. When you use a cloud-based system, the VoIP service itself is hosted on a cloud server and is managed by the same provider who is offering the VoIP services. Instead of having two different vendors, you have both functions under the same roof.
The Difference Between VoIP and Cloud-Based Phone Systems
VoIP systems don’t typically differentiate between solutions for consumers and businesses. For example, the services offered by Skype and Yay.com both fall under the ‘VoIP’ umbrella. Even SIP trunking solutions are technically a business VoIP product, though SIP trunking is a far cry from today’s cutting edge Hosted VoIP services.
Cloud-based phone systems tend to be much more business-focused because it’s only with scale that you need to worry about the robustness and reliability of large phone networks. Providers who offer entire systems are more focused on larger organisations that can benefit from the interconnected nature of the services. It’s also easier from an administration perspective.
So, in essence, while the terms are sometimes used interchangeably, VoIP and cloud-hosted phone systems are inherently different.
So which should you use?
Here are some of the advantages of cloud-based systems.
Advantages of Cloud-Based Phone Systems
Cloud-based phone systems have really 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 some of the key advantages of such a system.
Cloud-based 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 users the flexibility they need to do their best work.
Stable, Reliable Service
Cloud-based 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.
These are just three advantages of a cloud-based system, but they make a significant difference to how you interact with the technology. When compared to a traditional, on-premises PBX, hosted PBX is in a class of its own, which is why the industry has moved so aggressively in this direction.
If you’re looking for a business phone system of the future, leveraging the power of VoIP and the cloud, then look no further than Yay.com. We have worked hard to create an offering that can help your organisation level up its communication, both internally and externally.