How Does A Cloud Based Phone System Work?


The internet is one of the greatest innovations in human history. It has revolutionized the world, our lives, communication, the business landscape, and the modern world in ways that none of us could have predicted. As expected, most industries and sectors have taken full advantage of the internet’s benefits to improve their services and products.

Telephone communication is one such industry that has reaped the benefits or made the best use of internet technology. Following the advent of the internet, we were introduced to the cloud based phone system, which has largely replaced the traditional phone system. Cloud telephony provides several advantages that have played a pivotal role in making it a popular business communication method in a relatively short period.

In this blog, we will learn about how cloud phone systems work and the benefits of cloud telephony. But, before we get into those details, let us first understand what a cloud-based phone system is.

What Is A Cloud-Based Phone System?

As the name implies, a cloud-based phone system is a phone system that operates via an internet connection. This communication system is also known as a Voice over Internet Protocol (VoIP) system. Since the system is internet-based, it provides various benefits such as on-demand scalability, portability, uninterrupted connection, low call & operational costs, and a unified communication system, among others.

Besides, the unified communication channel allows you to streamline your business, improve your business communication while also securing data shared with your team or clients. Unlike traditional phone systems, cloud telephony divides data into small packets and sends them separately, ensuring that messages remain highly secure throughout the network.

Moreover, as a Unified Communication as a Service (UCaaS), a cloud-based phone system enables you to collect all data and information transmitted through the channel, monitor it in real-time, and analyze it to improve operational effectiveness and, ultimately, provide superior customer service and support to your customers.

But the question is– how a cloud telephony system differs from a traditional phone system and how it works. Let’s find out the answers to these questions in the following section.

How Does A Cloud-based Phone System Work?

In order to understand how the process of cloud phone systems differs from traditional phone systems, we must first understand how traditional systems function.

In a traditional phone system, sound waves are carried to a thin metal disc inside the phone, known as a diaphragm, and converted into electrical signals. The electrical signals are then transferred to another phone via copper wires and converted back to electrical signals at the other end.

Whereas in the case of cloud-based phone systems, all data transmission occurs over the internet, and there is no dedicated physical channel. The analog voice signal or sound you make is converted into data packets and sent over the internet to recipients.

Furthermore, there are very few hardware or components required in the case of cloud-based phone systems. One of them is cloud-based PBX, which is used to route calls. Besides that, unlike landline phones, a cloud phone system will require the use of a VoIP desk phone. In addition, there is an alternative to VoIP desk phones– you can use a softphone and an application installed on your smartphone, tablet, or computer.

Let us now take a quick look at the advantages of cloud telephony systems.

6 Benefits Of A Cloud Based Phone System

The following are the top 6 advantages of cloud-based phone systems. The benefits range from low call costs to on-demand scalability and portability to a unified communication medium. Let’s take a quick look at each one.

1 ) Uninterrupted Business Communication

Since it operates over the internet, the first and most important advantage of a cloud phone system is that it provides uninterrupted business communication.

Unlike traditional phone systems, which are connected via physical cables and are more likely to be impacted by natural disasters and other factors, cloud-based phone systems are considered highly secure and can withstand and are not affected by any such influences, helping you manage your international clients.

2 ) Extraordinary Flexibility And Mobility

Cloud-based phone systems also provide a high level of flexibility and mobility. Since it operates over the internet, all you need to set up a phone system is a VoIP phone and an active internet connection. This allows you to quickly and easily set up a VoIP phone system anywhere in the world with minimal resources. Furthermore, this advantage eliminates the need for physical workplaces, saving a significant amount of operational capital.

3 ) Access To Rich Communication Features

When you use a traditional phone system, all you can do is make or receive calls. However, in the case of cloud-based phone systems, in addition to making or receiving calls, you will have access to a variety of features such as call-forwarding, call-routing, auto-attendant, screen sharing, video conferencing, and toll-free numbers. All of these sophisticated communication features empower you to provide better customer service and support.

4 ) Improved Data Analytics

Data Analytics

To outline or devise effective strategies, you will undoubtedly require a large amount of data. Fortunately, with the help of a cloud-based phone system, you will have access to valuable data and analytics relevant to your campaigns and customer service. This data will allow you to identify areas where you excel and areas where you fall short. Ultimately, it will help you in revising and reorganizing your strategy and operations process.

5 ) Unified Communication System

In an era where it is necessary to provide multiple communication channels to customers, it is also essential to use communication tools that integrate all of these tools and channels into a unified system. Cloud-based phone systems– a unified system has its own set of advantages, such as centralizing all communication, providing real-time insight into the status of consumer complaints, and preventing information leakage, among other things.

6 ) Reduced Call costs

cost reduction

The cost of phone calls accounts for a significant portion of the overall cost of customer service. Therefore, it is advised that you must embrace tools and technologies such as cloud-based phone systems to reduce call costs. For example, when you use a VoIP phone system, your call costs remain the same for all types of calls, whether local or international.

This will significantly reduce the call cost. Further, this saved capital and resources can be put to better use elsewhere, such as improving customer service operations.

So these are the top 6 advantages of cloud-based phone systems. All of these advantages manifest that if you want to improve customer service while lowering operational costs, you should embrace cloud telephony right away.

The Bottom Line

There is no doubt that cloud-based phone systems are the need of the hour and technology that will be around for a long time due to their exceptional benefits. For these reasons, it is recommended that you bid adieu to your traditional phone system and say hello to the cloud telephony system as soon as possible to ensure that you remain ahead of your competitors when it comes to providing valuable customer service and support.

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