Voice over Internet Protocol (VoIP) and cloud telephony are two cutting-edge innovations that have revolutionised modern communication. Although they appear to have the same meaning and function, they are in fact distinct.
In this post, we’ll compare and contrast two cutting-edge communication methods: hosted voice over IP (VoIP) and cloud telephony.
What is Voice over Internet Protocol?
In order to make phone calls, VoIP (Voice over Internet Protocol) can be used. at order to use a VoIP phone system at the workplace, a switch must be set up. Then, the switch connects all the devices and routes the calls through the business’s Internet connection. Therefore, the firm can save money by not having to pay for as many telephone lines since one system can be used for several calls.
In the past, businesses made and took calls using PSTN (Public Switched Telephone Network) landlines. However, only one call could be made at a time through any given phone line. Therefore, they required additional phone lines to accommodate their simultaneous call needs. The firm is spared these kinds of headaches thanks to the VoIP phone system.
What Is A Cloud Telephony System?
A VoIP provider is the backbone of any cloud-based phone service. Because of this, there is no need for expensive and complicated PBX infrastructure to handle company calls in-house. Instead, the calls go through the service provider’s remote servers, where the implementation is handled. This avoids the need for a PBX (Private Branch Exchange), which requires costly care and repair.
Call analytics, auto-dial, click-to-call, and many other capabilities are just some of the perks of a cloud-based system. A cloud phone can be a smartphone, laptop, tablet, etc., as long as it has a consistent internet connection.
How Does a Cloud-Based Telephone System Differ from Voice over Internet Protocol?
Despite their apparent similarities in function, these two technologies couldn’t be more different.
- A cloud-based telephony system can be viewed as the “brains” of the business. It allows you to regulate your phone calls.
- Connecting to your cloud phone system is done over a VoIP connection. It relays your phone calls.
- Switching to a cloud-based phone service will automatically put you on a VoIP connection.
Cloud telephony is a centralised phone system that uses Voice over Internet Protocol (VoIP) to connect users. VoIP is essential for cloud-based phone systems to function. The two are distinct in the ways described below.
Hardware
In contrast to traditional phone systems, a cloud-based phone system needs only the phones themselves to function. In contrast, a Voice over Internet Protocol (VoIP) phone system must have physical gear installed in an office.
Scalability
A cloud-based phone service can be expanded with little effort. As the company grows, adding additional users to the phone system is a breeze. Alternatively, a VoIP system’s hardware may be limited to handling a finite number of users’ handsets.
Because of this, if the company increases, it will need to acquire new gear to accommodate the increased number of devices. Cloud telephony, on the other hand, doesn’t have this limitation because it can be expanded to support more gadgets with less effort.
Price of Maintenance and Repairs
The hardware of a VoIP system is installed locally. If there is a technical failure or a power outage, the services will be interrupted for longer periods of time. In addition, you’ll have to spend money on upkeep and repairs.
A cloud-based phone system, on the other hand, is hosted by the service provider, who is responsible for handling any and all technical issues that may arise.
Working From Home
With cloud telephony, customers can connect their mobile phones to the system and make and receive calls. It facilitates distant workers’ productivity. Using their mobile phones, they are able to make and receive calls regardless of their physical location.
This mobility and adaptability is not provided by VoIP phone systems. Only office equipment directly connected to the hardware system or switch will be able to use it.
Data Storage
With cloud telephony, your company’s data is safely stored off-site where it can be restored in the event of a disaster. An online dashboard provides access to all of this data from any location. In contrast, VoIP systems save call information locally in data centres.
Cost
When compared to PSTN networks, both cloud telephony and VoIP are more cost-effective options, although cloud telephony is seen as having lower upfront and ongoing costs.
Your company’s communication can be simplified using cloud-based phones and VoIP. By migrating your operations to the cloud and paying a little monthly fee, you may take advantage of both technologies. So, pick a provider that will best suit your company’s communication requirements.
How do VoIP’s main features work?
Cost-Effective
When comparing the costs of local versus long-distance or international calls, VoIP is usually the more cost-effective option. There are a lot of VoIP companies with cheap plans that include unlimited calling.
Flexibility
With VoIP, you may make phone calls from your computer, smartphone, or tablet, provided you have an internet connection. Because of its adaptability, distant and mobile communication is possible.
Integration
VoIP can work in tandem with your existing infrastructure by connecting to your email server and customer relationship management (CRM) system.
Superior Technology
Call forwarding, call recording, voicemail transcription, and video conferencing are just some of the advanced features that can be found in VoIP services.
What are the advantages and disadvantages of using a cloud-based phone system?
The adoption of digital and internet-based services has led to a rise in the popularity of cloud-based phone systems, but it’s still vital to weigh all of the pros and cons before choosing if such a system is good for your organisation.
Pros Of Cloud-Based Phone Systems
Cost-effective
The primary advantage of cloud-based phone systems, like with many cloud services, is their low cost. Because your calls go through the internet rather than a traditional phone system, you only have to pay for your internet connection and not for call minutes or phone service. Unlike traditional phone systems, which often charge extra for conveniences like voicemail and auto attendant, cloud-based alternatives typically bundle these capabilities into a single monthly bill.
Reliable
Cloud-based phone systems’ dependability is a major benefit. For the vast majority of organisations, having a steady phone line is essential for connecting with clients and other outside parties. With a cloud-based phone system, your calls and data are safe even if a server goes down because the system is housed in numerous locations. Geographic redundancy is a strategy that can greatly reduce service outages for enterprises.
Flexible
As a result of its adaptability and convenience, cloud-based phone systems are increasingly popular among enterprises with mobile employees. As long as you have an internet connection, calls can be forwarded to your VoIP-enabled device from a cloud-based system.
Scalable
Cloud-based phone systems also provide scalability, which is useful for rapidly expanding businesses. With a cloud-based management solution, you can simply scale your business’s communications to meet changing needs without investing in costly infrastructure upgrades or hiring expensive IT staff. In addition to saving you time and money, performing updates and maintenance in the cloud also allows you to keep your communications channels open at all times.
Cons Of Cloud-Based Phone Systems
Relying on Linking
Due to their dependence on the internet, cloud phone systems are vulnerable to disruptions in service. A cloud-based system may not be suitable if your internet connection is inconsistent and often dips or fails. A reliable and constant internet connection is required for a cloud-based phone system to function properly.
Security
Since third parties operate cloud services, you should be aware of how they handle data protection. Without adequate protections, cloud-based systems can be broken into or infected by malware. Make sure your data is safe in the cloud by using a secure connection and a reputable cloud service provider.
Wasted money
Investing in adaptors to transform your company’s existing legacy telephone infrastructure into cloud-enabled VoIP phones or replacing all of your phones can be prohibitively expensive. Take stock of what you already have and figure out whether investing in a system conversion or buying a new service will save you money in the long run.
When do they cooperate and how?
The integration of these two technologies is seamless. If you choose with a VoIP cloud phone service, you won’t need traditional phone lines at all.
Imagine a network of roads instead. If the vehicles on the road represent incoming calls, then the road itself represents your VoIP service. An officer stationed at the road’s terminus provides directions to drivers. Your cloud-based phone system acts as the traffic cop.
Your company will benefit from the easy integration of VoIP and cloud phone systems.
The fact that you won’t have to pay for two distinct services is also a major perk. A cloud phone system is not complete without VoIP connections. When you join the cloud, VoIP is included in your package.
How Do You Determine If A Hosted Telephony Solution Is Right For Your Company?
It’s possible that a cloud-based phone system isn’t the best fit for your company, despite the fact that it has a number of advantages over older, more expensive phone systems. To decide whether or not to purchase a cloud-based company phone system, think about the following.
Equipment
Cloud phone solutions are convenient for new businesses that want to start up with minimal outlay in hardware. Because cloud phones may function entirely on any computer or mobile device, traditional phones are becoming increasingly obsolete. However, before signing up with a service, you should verify that your existing traditional phone system equipment is compatible with cutting-edge cloud technologies.
Costs
The upfront and ongoing expenditures associated with installing and maintaining a conventional phone system are rendered moot by cloud-based phone solutions. Video conferencing and artificial intelligence-based sentiment analysis are just two examples of the advanced features available with some cloud-based phone systems. You should think carefully about whether you actually need all the extra features that come with the higher price tag. For businesses that only require the most fundamental of phone capabilities, there are cloud phone companies that offer stripped-down versions.
Reliability
The reliability of your internet connection is essential for cloud-based phone services to function properly. A cloud phone system may not be practical if your internet connection is unreliable unless you also improve your internet plan.
Management of Data
Instead of keeping data on their own servers, businesses are increasingly turning to cloud service providers. This can be helpful for smaller companies without IT departments, but it could be a downside for those who value privacy and security above all else. Think about your company’s data usage and the safety measures taken by any potential partners.
Conclusion
Voice over Internet Protocol (VoIP) and cloud telephony are two innovative methods of contact that have altered the face of modern conversation. Using Voice over Internet Protocol (VoIP), cloud telephony connects users through a centralised phone system. Both technologies are important for companies to think about, and each has benefits and drawbacks.
With VoIP, a switch connects devices and routes calls through the company’s Internet connection, eliminating the need for a costly private branch exchange. Cloud telephony, on the other hand, outsources implementation to a VoIP service provider, letting users connect more devices without spending money on new PBX systems.
Due to the fact that cloud telephony just requires the phones themselves to function, it is more cost-effective than more conventional phone systems. It is also scalable, meaning that it can easily accommodate more users and devices. The cost of upkeep and repairs for a cloud-based phone system, however, is higher.
With cloud telephony, clients may make and take calls from their mobile devices, enabling them to work remotely. While VoIP systems save call details locally in data centres, data storage is also an option.
In comparison to the public switched telephone networks (PSTN), cloud telephony is cheaper overall and requires less maintenance. Both technologies can benefit organisations if they move their activities to the cloud and pay a nominal fee on a regular basis.
VoIP’s many benefits include low prices, adaptability, seamless integration, and cutting-edge engineering. The low price is a key perk because all you need is an internet connection, not phone service or call minutes. The redundancy provided by having cloud-based phone systems hosted in different places increases the reliability of both calls and data. The ability to forward calls to any VoIP-enabled device, everywhere there is an internet connection, is another key perk.
With cloud telephony, organisations can easily expand their communication capabilities to match their evolving needs without having to invest in expensive new hardware or additional IT workers. In sum, businesses who want to streamline their communication and telephony needs can profit from implementing either VoIP or cloud telephony.
Due to their reliance on the internet, cloud-based phone systems are susceptible to service interruptions. An always-on internet connection is necessary for optimal performance. Since third companies manage cloud services, it is especially important to ensure the safety of sensitive data. Consider the long-term savings before spending money on adaptors or new phones.
VoIP and cloud-based phone systems work together without a hitch because they don’t rely on PSTN infrastructure. VoIP connections are a necessary part of any cloud-based phone system, and they come standard. Factors including equipment compatibility, pricing, reliability, and data management can help you decide if a hosted telephony solution is ideal for your business. While cloud-based phone systems offer a number of benefits for startups, they may not be the ideal option for smaller enterprises with fewer employees. When deciding on a cloud phone system, it is crucial to think about the company’s data usage and the security measures of potential partners.
Content Summary
- VoIP and cloud telephony are two innovative communication methods.
- They are distinct technologies despite appearing similar.
- VoIP uses the internet to make phone calls.
- VoIP saves money by using one system for multiple calls.
- Cloud telephony uses a VoIP provider to handle calls through remote servers.
- Cloud telephony eliminates the need for expensive PBX infrastructure.
- Cloud telephony offers features like call analytics and click-to-call.
- Cloud telephony can be accessed from various devices with an internet connection.
- Cloud telephony acts as the “brains” of a business for call regulation.
- Cloud telephony connects to VoIP for relaying phone calls.
- Hardware requirements differ between cloud-based and VoIP phone systems.
- Cloud-based systems are easily scalable, while VoIP systems require additional hardware for expansion.
- Cloud-based phone systems have lower maintenance and repair costs.
- VoIP systems require local installation and are susceptible to technical failures.
- Cloud telephony enables remote work and mobile communication.
- VoIP systems are limited to office equipment connected to the hardware.
- Cloud telephony stores data off-site for easy restoration in case of a disaster.
- Both cloud telephony and VoIP offer cost-effective communication options.
- VoIP offers cost-effective calling plans, especially for long-distance or international calls.
- VoIP allows phone calls from computers, smartphones, and tablets.
- VoIP can integrate with existing email servers and CRM systems.
- VoIP provides advanced features like call forwarding and voicemail transcription.
- Cloud-based phone systems have low costs and bundle capabilities into a single bill.
- Cloud-based systems offer reliable phone lines through geographic redundancy.
- Cloud-based systems allow call forwarding to VoIP-enabled devices.
- Cloud-based phone systems are scalable without infrastructure upgrades.
- Cloud-based systems rely on internet connection and may face service disruptions.
- Data security is a concern with cloud-based systems and third-party providers.
- Adapting existing infrastructure to cloud-enabled VoIP can be expensive.
- Integration between VoIP and cloud phone systems is seamless.
- Cloud-based phone systems eliminate the need for traditional phone lines.
- VoIP is included in cloud phone system packages.
- Consider equipment compatibility when choosing a cloud-based phone system.
- Evaluate upfront and ongoing costs of a conventional phone system versus cloud-based solutions.
- Reliability of the internet connection is crucial for cloud-based phone services.
- Cloud storage may be advantageous for smaller companies without IT departments.
- Consider data usage and security measures when selecting a cloud service provider.
- Assess if a cloud-based phone system aligns with your company’s needs.
- Cloud-based systems are cost-effective and eliminate the need for traditional phone service charges.
- Cloud-based systems provide reliable phone lines through redundancy.
- Cloud-based systems offer flexibility for mobile employees.
- Cloud-based systems allow scalability without infrastructure upgrades.
- Cloud-based systems require a reliable internet connection.
- Data security is a consideration with cloud-based systems.
- Adapting existing infrastructure to cloud-enabled VoIP can be expensive.
- VoIP and cloud phone systems integrate seamlessly.
- Cloud-based phone systems eliminate the need for traditional phone lines.
- VoIP is included in cloud phone system packages.
- Consider equipment compatibility when choosing a cloud-based phone system.
- Evaluate costs, reliability, data management, and privacy when considering a cloud-based phone system.
Frequently Asked Questions
Can VoIP be considered a part of Cloud Telephony?
Yes, VoIP can be considered a component of cloud telephony as it is the underlying technology that enables voice communication in the cloud. However, cloud telephony typically includes additional services beyond basic VoIP functionality.
Is Cloud Telephony dependent on VoIP?
Yes, cloud telephony heavily relies on VoIP technology for transmitting voice calls over the internet. VoIP forms the foundation of cloud telephony systems.
Can Cloud Telephony work without an internet connection?
No, since cloud telephony relies on internet connectivity, it requires an active internet connection to function. Without internet access, cloud telephony services would not be accessible.
Can VoIP calls be made without a cloud-based system?
Yes, VoIP calls can be made without a cloud-based system. It is possible to set up a local VoIP network within an organisation using dedicated hardware or software solutions without utilising cloud services.
Which option is better for my business, VoIP or Cloud Telephony?
The choice between VoIP and cloud telephony depends on your business requirements. If you need basic voice communication capabilities and prefer an on-premises solution, VoIP may be suitable. However, if you desire advanced features, scalability, and flexibility, along with the convenience of cloud-based management, cloud telephony would be a better choice.