Cloud-Based VoIPs: How do they Work?

Cloud-based VoIP or “Internet-based phone system” refers to a telephone platform hosted by a third-party allowing communication via data networks rather than traditional telephone systems. Cloud technology grants access to benefits such as increased security, auto attendants, conference bridges, and extension dialing.

In this blog, we take a look at what cloud-based VoIPs are and how they function.

What is a Cloud-Based VoIP?

VoIP systems are of two basic types: the first one is called an “on-premises” VoIP where the organization owns the hardware and software aspects of a telephone system and is responsible for operating the IP PBX (traditional phone system). The second one is referred to as cloud-based VoIP or a “hosted” VoIP where a third-party provides PBX solutions over the internet.

Naturally, on-premises VoIP systems aren’t within the budget of small to medium enterprises as it involves purchasing expensive hardware, recruiting qualified IT personnel, and undertaking expensive maintenance costs. Cloud-based VoIP is also called “hosted” because the hardware and software used to manage the system is located far away at the third-party providers’ premises.

Such setups allow companies to only pay for the service and prove ideal for small and medium-sized businesses.

Features of Cloud-Based VoIP

The features of a cloud-based VoIP differ significantly from traditional systems. For instance, it provides a greater level of security for businesses. VoIP hacking is not uncommon and involves elements of fraud, phishing, spoofing, and intercepted calls. Because traditional on-premises equipment has a physical existence within the company, it was limited to a few simple security measures.

Cloud-based VoIP systems, however, utilize a range of effective security measures including HIPAA compliance protocols, data encryption, and network security that prevents hijacking of audio or video lines of communication. These systems are carefully monitored around the clock and the servers are placed in secure facilities.

Scalability is also a key business concern that cloud-based VoIP effectively address. Traditional PBX relies on telephone equipment and physical wires. Any business seeking to scale up its operations has to add additional phone lines, extensions, and features which is both costly and time-consuming. It would also result in a waste of resources when operations had to be scaled down.

Hosted VoIP systems can easily scale up or down in a manner of minutes without incurring any extra costs.

These systems are reliable and rarely experience downtimes. In the event of natural disasters or damages, there is no loss of equipment and a number of failsafe measures exist to ensure continuity of communication under all circumstances.

Looking to hire the services of cloud-based VoIP providers? Top 5 Business VoIP provides a comprehensive list of top VoIP providers for businesses seeking to leverage the advantages of cloud-based technology!