What is a Cloud-Hosted Phone System?

Traditional telephone networks work by connecting phone systems to the public network. These networks use ISDN or PSTN. In more modern phone setups, traditional phones can work through VoIP, which runs the phone lines over internet connections.

Cloud phone systems take the concept further. The phones are not directed through traditional networks at all. Instead, voice communication routing through a hosted internet system. Businesses can utilize standard phone technology, but it doesn't need to work. Instead, any computing device can deploy cloud calling for voice communication. Typically, cloud-based voice is less expensive than old-school phone lines or VoIP because it can integrate with additional cloud services. Cloud calling is an inexpensive tool for businesses.

Cloud-hosted phone systems work by separating your voice into tiny digital packets sent as data over internet connections to the call recipient. A cloud-based PBX uses signals to direct the voice call anywhere in the world with an internet connection.

Cloud-hosted phone systems are accessible through various methods, making them available for anyone with an internet connection to use.

• A traditional phone with a VoIP adapter. Simple to install and ready to use in minutes. The adapters connect into a phone outlet in the wall or directly into your office router. 

• Many programs or applications let you make voice calls over the internet, including Skype, Microsoft 365, Google Voice, and Apple FaceTime. 

• With your personal device or smartphone, you can download apps such as Microsoft Teams or Skype to make internet calls. A business could also use any pre-placed application that is already on your device. 

• A company can utilize a designated VoIP phone that is already in possession. These look like traditional analog phones, but they can dial directly to a computer and internet connection rather than a phone line.

One of the main wow-factors of cloud-hosted phone systems is the many features they offer. Analog phones can be limited when introducing their features. In contrast, cloud phones can add and update features as they become available. These are a few of the features.

• Unified communications: A unified communications solution combines your business phone system, voicemail, and instant messaging. Video conferencing and faxing can also integrate with email, web apps, social media, and tools like CRM and PSA.

• Video Conferencing: Remote work is becoming more common; businesses need reliable and secure solutions for video conferencing. Many cloud-hosted phone systems offer video conferencing as a part of their initial package. So you will not have to pay extra for it as an additional feature.

• International calling: cloud-hosted phone systems phones are internet-based. You do not encounter long-distance charges and bills when you place or receive international calls. Long-distance and international calling are free features in most cloud-hosted phone packages.

• Ring anywhere: Also known as "always ready to call" or "anywhere and anytime," this feature allows users to place or receive calls on multiple devices from the same unified number. With this option, when the work number is ringing, both the user's desk and smartphone, for example, will ring, and the end-user can decide which one to answer. You can also transfer all calls between one or more devices. 

• Artificial intelligence: AI is prominent in almost every aspect of modern life, and cloud phones are not an exception. Cloud system providers are now using AI to provide customer service and perform functions like speech-to-text and sentiment analysis. 

• Instant messaging: Instant messaging is a text-based way of communication. It allows for real-time communication that instant messaging can run through several devices, including desktop computers and smartphones. Instant messaging adds a responsive layer of communication and leaves information in writing for referencing later.

• Cloud communication: Cloud communication is the ultimate bundle of communication services. It includes A cloud-hosted phone bundle that may consist of telephone, instant messaging, video conferencing, and other communication methods. 

• Call forwarding: This will shift your calls to one number and redirect them to another line. Cloud-based call forwarding works just like any traditional call forwarding. The service will allow users to condense calls to a single line, even when necessary or essential, to call a specific phone number directly.

• Auto-attendant: The automated voice menu that one often uses in business calls. Automated directories help direct calls and reduce the communication workload of persons in the business. Once the requests finish executing, individuals can take calls, or further automation services can resolve issues. 

• Collaboration: Collaboration tools include instant messaging, file sharing, video/audio conferencing, real-time project contributions, and other devices that help people work together without being in the same room or country. 

• Voicemail-to-email: Transcribes a voicemail and then sends it as an audio file or text to an email address. Voicemail-to-email allows the recipient to access their voicemail without using a voice mailbox. The emailed file or document is accessible with a broader range of devices. It typically will not congest or exceed data limitations, allowing the recipient to revisit and read the voicemail at any time. 

• Integrations: Cloud integrations allow for many resources to combine into a single cloud package. The same service provider that allows for massive data storage and analytics can also handle any voice calls. By consolidating services through integrated platforms, powerful tools are made accessible and easy to use. Integration is broad in the subject, and it is a foundation in virtually every cloud service.

Cloud-hosted phone systems are becoming more and more popular as the business world becomes more technology inclined and offers many internet-based services. Cloud-hosted phones offer many benefits, ranging from cost to reliability. Before deciding whether they are the best solution or not for your business, here are some crucial aspects to consider.

Pros of Cloud-Hosted Phone Systems

The most significant benefit of cloud-based phone systems is their reduced cost. Calls are engaged entirely via the internet. Reduction in price means you only pay for how much internet you use rather than call minutes or extra phone service. Conventional phone systems can be expensive with multiple lines and add-on features like call transferring or voicemail. Most cloud systems allow the phone service with significant characteristics incorporated in the service package. So one will only have one monthly payment for all of your communication necessities.

Cloud phones are incredibly reliable.  Hosting for these systems is in multiple locations, which means that even if one server experiences issues, another server can keep your communications running smoothly. Using numerous servers is called geographic redundancy, and it is a highly effective method for avoiding service issues and downtime. 

Flexibility is another significant benefit of cloud-based phone systems. The world is scurrying toward an expectation of workers being available anytime, anywhere. A cloud phone acknowledges that functionality and can route calls to your VoIP-enabled phone no matter your location. As long as one has access to an internet connection, you will be able to call anywhere.

Suppose your company is currently experiencing or expects to see significant growth. In that case, a cloud-based phone system offers an excellent choice for easy and efficient scaling. A cloud management system enables you to easily add phone lines, extensions, and superior features without hiring an expert or paying for more equipment. This system also goes for maintenance – all updates can be done in the cloud, saving you time and money.

Cons of Cloud-Hosted Phone Systems

Of course, there are some drawbacks to cloud-hosted phone systems that should be in consideration.

Cloud-hosted phone systems are entirely dependent on the internet and your connection. If you have irregular or unpredictable service, a cloud-based phone system may not be the best option for you. A robust and consistent connection is required.

Suppose your business already owns many traditional phones. In that case, it may be cost-prohibitive to purchase all the necessary adapters or acquire new IP phones. Examine the equipment you have and see if it makes sense to adopt that equipment into a cloud-hosted system.

Cloud phones, being dependent on the internet, are susceptible to security issues like hacking and malware. Antimalware and antivirus software must protect your connection. Furthermore, talk to the provider you're contemplating using and ask them to outline all the safety criteria they use to make sure your data remains guarded.

VoIP and cloud-based systems also may not endorse 911 calling support. Cloud-hosted phone systems are not tied to a single geographic location like traditional phones, making it challenging to trace a 911 call accurately. A possibility is to enable Enhanced 911 or E911. Customers set a physical address that shows up when they dial 911 on their cloud phone. However, not all cloud or VoIP providers offer this service because to do so. They must cooperate with joint phone companies with secured access to the 911 network in the past. Ask the VoIP provider you're considering if it offers 911 service automatically, if the service provider must activate it or if it is not supported at all.