Cloud Based Phone Systems Guide

Cloud Based Phone Systems Guide
Article by Zarah Ariola
Last Updated: March 01, 2023

Just like any industry, the telecom industry is also expanding rapidly. This has led to improved range and accessibility in cloud-based phone systems.

Additionally, equipment such as business phones has also changed recently. This increases the drive to offer sophisticated solutions with reliability, functionality, and productivity.

Here’s all you need to know about Cloud-based phone systems.

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What Are Cloud Based Phone Systems?

A cloud based system is a phone service that allows making calls over the internet and stores data in the cloud. It is also called “cloud calling” or “VOIP phone system.”

It stores data on the cloud in servers hosted in off-site secure data centers. Cloud-based phone systems offer cost-effective, agile, and reliable solutions. These previously premium business services are basic now.

It also offers software integration, analytics, UCaaS (Unified Communications as a Service), which allows managing calls, messaging, and video conferencing, and CCaaS (Contact Service as a Center) services. All these services can be run on the same platform.

How Do Cloud Based Phone Systems Work?

Answering services such as loud phone services can be deployed in a myriad of ways. The data is stored and accessed via the cloud, which easily updates and protects data and saves time and money. It can be deployed with traditional PSTN telephones with adaptors, computer calling software, smartphone apps such as Google Voice, and VOIP-enabled phones. It can be set up within an hour and is up and running in no time. The installation is free from network interruptions and downtime.

Cloud-based systems break the calls into small digital pockets, which are sent as data from the internet to the recipient of the other call. Used through multiple methods, the service is available for anyone with a stable internet connection.

Here’s how you can deploy a cloud-based phone system into your business communication system:

A Traditional Phone with a VOIP Adaptor

An adapter helps make calls over the internet with a regular telephone. The adaptor is plugged into a phone socket or directly into a router.

A Computer

Programs and applications on a computer help to make calls over the internet. These applications include Skype, Google Voice, Apple Facetime, and more


Smartphone apps (as those mentioned above) help make calls over the internet.

A Dedicated VOIP Phone

A dedicated VOIP phone is a traditional analog phone that connects to a computer network rather than a phone line.

How to Find The Right Cloud Based Phone System?

Finding the right cloud-based phone system depends on numerous factors. Some of them are budget, enterprise needs, plans, reliability, enterprise size, and others. If businesses are new to the system, ensure conducting in-depth research before concluding on one. Enterprises with limited communication needs may resort to cheaper plans that only offer necessary tools.

The more crowded the telecom scenario, the more difficult it is to find the right fit.

Below are the ideal features to look for in a Cloud-based phone system:

  • Voicemail
  • Messaging
  • Caller ID
  • Do not disturb
  • Call forwarding
  • Ring groups
  • Unified communications
  • Online management
  • Voicemail-to-text email
  • Automated attendant

Businesses may look for a new VOIP phone system to find an improved version that aligns with their current requirements, for example, the communication volume. Such cases may call for sophisticated options with advanced technology.

Whether you are starting afresh or considering switching, here’s what you can base your decision on:


Equipment refers to if a firm already has an IP phone which can be added to the cloud system or a traditional phone that requires a desk phone adaptor.

Analyzing the current equipment affects the overall cloud deployment costs.


82% of businesses reported cost savings when they moved to the cloud. This substantial benefit has led to increased cloud adoption.

Assess the current scenario and determine the required features. This helps assess if specific features must be eliminated.

Ensure if the required features are included in the package or have to be purchased as add-ons. Being sure about the required features offers to pay only for the necessary features. This model prevents paying for on-premise hardware.

Business Level

Despite being an economic model, consider the level of the business. It could be a small, mid, or large-scale business.

The cloud phone system for business can also be pivoted based on the package.

Benefits of a Cloud-Based Phone System

The refined services of the current times enhance productivity, build mutual trust, bring the remote workforce together, and create an excellent impression.

Check out the benefits that Cloud Based phone systems have to offer:


Cloud VOIP providers often charge less per minute than most landline service providers, reducing the monthly phone expenses. Cloud business phone systems remain economical regardless of the call volume and usage. This makes it highly preferable for call centers with high volumes of communication. This is possible due to free local and toll-free numbers and economical international calls.

Running parallel to the business requirements reduces recurring costs, upfront investments, and add-ons. This also helps small businesses to access services at an affordable price for office and employee phone systems.

Firms can also access the pay-as-you-go models with limited communication. The hosting platforms also don’t require paying for the hardware, which prevents installation and update costs.


The internet-based business phones offer flexibility, allowing employees to work on their mobile devices from home, airports, customer sites, remote offices, or anywhere in the world.

When Businesses scale with new offices, and employees, a communication system can scale teams easily. Additionally, UCaaS allows businesses to integrate their phones with applications and operating systems.

For instance, CRM data can be passed on to call centers so the customer support professionals can work efficiently. It is also possible to add phone lines, extensions, and advanced features as required.


Some providers offer free phone apps that allow remote working anywhere around the globe. This brings the entire office under one roof, regardless of location.

Legacy systems need at least one person to monitor the servers. This adds to tons of investment and effort to keep them up and running. This may burden the IT contractors or the in-house IT staff.

Sudden malfunctions lead to impediments to smooth executions.


As hardware is not stored on-premises, maintenance and upgrades are not required. This reduces disruptions, downtime, IT hours, and mechanical malfunctions.

This drastically increases the system's ability to withstand manual and natural challenges. Apart from affecting the business, it could also affect the customers. These include natural disasters, cybersecurity attacks, and manual errors.

Another benefit is geographic redundancy. For example, if there are two servers in different geographical locations, either can serve as a backup in case of a malfunction. This causes lesser downtime and ensures business continuity.

Despite being highly reliable, cloud-based phone systems depend on a stable internet connection. Moreover, a cloud-based phone system is highly secure. Here’s the proof - 94% of businesses saw an improvement in security after moving to the cloud.

Faster Implementation and Setup

A designated phone for each employee means extending lines and ports, which may take weeks. Besides being time-consuming, it could also be expensive and tedious. This can exceptionally affect time, effort, and productivity.

As businesses cannot afford hindrances in collaboration, cloud phone systems can be implemented promptly regardless of how quickly the firm is growing.

Furthermore, it centralizes business communication on a unified platform, with the team accessing relevant tools.

Access to Multiple Features

Cloud-based phone systems offer access to various features that can make daily operations smoother. They are:

  • Advanced call forwarding
  • Automatic call recording
  • Custom caller ID
  • One-click conference calls
  • Call analytics and logs
  • Multi-level auto-attendants
  • Custom caller ID

This offers enhanced control over communication modes, allowing access to smartphones, desk phones, or softphones. New features can be added without complications, confusion, and hardware updates.

Customer Service

92% of customer interaction happens over the phone.

Businesses can serve customers efficiently at a low price whenever required. Enterprises can also cater to customers effectively despite a busy season.

A sophisticated approach can evade choppy phone call reception, dropped calls, delays in connection, and difficulty in reaching the professional concerned. This can be done with call routing, mobility options, and high uptime. Additional customer support solutions include auto-attendant, virtual assistant, and integrations with accounting software and CRM tools.

These features also allow directing calls to the departments concerned and creating unique greetings for audiences further refining personalization.

Cloud-Based Phone Systems – Key Takeaways

As businesses grow, so should their communication, which paves the way for an increase in cloud adoption.

A faulty communication system may affect varied fronts. The affected people could be the user or the customer service professionals who may find a lack of connection between call centers and CRM tools.

Ensure ample bandwidth, a stable connection, and comprehensive staff training for consistently smooth operations and results. Presenting an overview to the team with timelines, features, and upgrades before and after the switch can considerably help.

Professionalanswering service companies can also help you with this process, so we advise looking for the right agency to partner with for your project.

We’ll find qualified phone answering services agencies for your project, for free.
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