Cloud Phone System: How Does it Work?


A cloud system is a modern spin on traditional phone calls. Instead of having a physical path for a call facilitated by the service provider, the call is instead made over the internet. With no physical wires necessary to make the call, the cloud system is a versatile alternative that’s faster to install, on-board, move location, and switch providers.

How a cloud phone system works

Many businesses have their phone system running on a server in the office, but this requires maintenance and initial investment. A cloud phone system already has the infrastructure in place, and so only a subscription is needed. 

A Voice Over Internet Protocol (VoIP) is a system that sends the user’s voice, along with metadata such as time and date, over the internet in which it’s hosted in the cloud. Of course, being part of a cloud system makes it easily accessible from around the world on various devices, which is one of many reasons behind its popularity among managers.

The data of your voice is reduced into digital packets. The SIP Trunking process is then used to connect to the traditional phone network. This is the key difference between VoIPs and FaceTime, with many of the popular internet communication platforms like Skype not being able to access landline numbers and traditional phones.

Why a manager may prefer a cloud system

First and foremost, a cloud VoIP telephone service is a great money-saver. Some reports suggest that small businesses save up to 40% on local calls when switching to a VoIP, and up to 90% on international calls. This makes sense if you think of why an international Facebook call is equally as free.

There’s also great geographical flexibility that comes with companies such as Because the data is being hosted on the cloud, tablets, phones, laptops, computers, and traditional landlines. The only obstacle here is having an internet connection – but it’s rare that one gets a cellular connection without enough bandwidth for 3g or 4g use, so this isn’t much of an issue.

Benefits for the user

From the users’ perspective, cloud VoIPs are ultra-reliable. The infrastructure isn’t located in just one place, meaning that systems can be spread around and with back-ups in place.

Further, such cloud phone systems have multiple uses. Here are some major ways they can be integrated:

  • Sales automation
  • CRM systems
  • Customer service
  • Quality Assurance tools
  • Web Apps
  • Chat Apps

Users also tend to appreciate the modern, intuitive design that allows them to be on-call wherever they are. This is perfect for our current lockdown situation, and the trend towards remote work. Being connected with your team or customers, even when not at your desk, is becoming increasingly important year on year – it goes hand-in-hand with other office and software solutions.

When deciding on a VoIP system provider, it’s important to take into consideration more than just cost alone. Security is of great importance to businesses and needs to comply with minimum requirements. The system also needs to have maximum integration and features to ensure it can work efficiently with other solutions and fits the individual needs of the business.