What is a cloud-based phone system?

A cloud-based phone system is a phone service that allows you to make calls through the internet. It's also termed cloud calling or a Voice over Internet Protocol (VoIP) phone system. A cloud-based phone system differs from typical analog phones in that it can store data in one or more offsite secure data centers, as opposed to classic analog phones that employ copper wires or optical fibers to connect two callers.

Traditional phones with adaptors, smartphone apps (such as Google Voice), computer calling software, or VoIP-enabled phones can all be used with cloud-based phone services. Hosted PBX, or private branch exchange, is an example of a cloud-based phone system. The cloud stores and accesses all data, saving you time and money by allowing businesses to enhance and secure your data.

Traditional PBX phone systems have drawbacks.

Companies utilize a private branch exchange (PBX) to route calls to departments or phone extensions. Traditionally, the system has been kept on the grounds of the company. The system machinery is large and bulky, requiring its own storage space as well as regular repairs and maintenance. Only major corporations can set up and run this type of phone system in the past. With the rise of cloud computing, this has altered.

What Are the Benefits of a Cloud Phone System?


The main advantage of using a cloud phone system versus hosting your own is the time and money saved on phone system maintenance. It's similar to using a hosted email service like Gmail rather than establishing your own. You can avoid not only the cost of the server(s) that will host the phone system (as well as the SIP trunking or PRI service that will connect it), but also the time spent on configuration, upgrades, and security.

Enhanced Security

If you're not vigilant with your phone system, VoIP hacking is a common occurrence. If they can, VoIP hackers will gain access to phone networks and use them to make calls on your behalf. Reputable cloud phone system providers concentrate on providing a secure service so that you do not have to.


Admin portals are available from cloud phone system providers, allowing any designated team member to make adjustments (such as adding a phone for a recruit) with a few clicks. For enterprises, this is far more efficient than relying on a single IT resource for complicated configurations.

Integrations & Advanced Features

Cloud VOIP phone system lick-to-call app

Remote Working & Scalability

Finally, a cloud phone system enables your phone system to grow with your company and support remote workers. Remote employees can register their phones from anywhere because the service is hosted on the Internet. Across the country, approximately 4 million people work remotely daily. Employees' cell phone and home phone expenses are frequently reimbursed by businesses without a hosted phone solution, which adds up.

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