Demystifying Cloud Telephony Vs VoIP: How Do They Differ?
A reliable communication system is the lifeblood of business operations. From closing deals to supporting customers and keeping all business resources in sync, Cloud telephony is a game-changer. A Cloud phone system helps optimise business resources while enabling a seamless communication system. The expansive cloud infrastructure not just enables seamless voice and data communication but also leads to improved efficiency, cost savings, and enhanced customer experiences. Let us study this in detail.
What is Cloud Telephony?
Cloud telephony, also known as IP telephony, is a modern communication system that utilises the internet and cloud computing to manage voice and other forms of communication. Cloud Telephony does not require expensive hardware investments like traditional on-premises phone systems, offering businesses a flexible, scalable, and cost-effective alternative.
It hosts all the necessary telephony infrastructure and software in the cloud, simplifying business communication. Businesses can conveniently access and manage their communication services using a user-friendly web-based interface or mobile software application.
How does Cloud Telephony Work?
Voice over IP (VoIP) technology helps transmit voice signals over the Internet. It then routes incoming and outgoing calls through cloud servers,rather than traditional telephone exchanges, facilitating rapid and reliable communication. The voice data is converted into digital packets and sent to the VoIP provider’s servers. These servers are geographically distributed to ensure reliable and efficient call routing for callers regardless of their location. The server then processes the data delivered while handling various tasks, including call routing, call recording, voicemail, and interactive voice response (IVR).
Benefits of Cloud Telephony:
- Quick Set-up and Integration:
Businesses can quickly set up and connect their phone systems using just an internet connection and compatible devices. Calls can be made and received from any location, with installation and configuration managed entirely by the cloud provider.
- Centralised Communication Management:
Cloud-based phone systems offer a unified platform for overseeing all business communication, including calls, voicemails, and messages. This helps users with comprehensive tools for monitoring and analysing their communication, enabling them to ensure quality, maintain compliance, and identify opportunities to boost operational efficiency.
- Feature-Rich:
Cloud telephony offers advanced functionalities, including call forwarding, routing, Interactive Voice Response (IVR) menus, call recording, voicemail transcription, and detailed call analytics. These features enhance communication flexibility and give businesses tools to tailor their phone services to evolving needs.
- Customisable Support:
Businesses can easily design their call flow and customer interaction experiences. Automated call routing, personalised greetings, and tailored messaging systems help organisations deliver an efficient customer service experience aligned with their specific communication strategies.
- Improved Productivity:
A cloud phone system can be integrated with Customer Relationship Management (CRM) and other business applications, streamlining workflows. Agents can access customer information automatically during calls, eliminating the need for manual data entry and allowing resources to focus on meaningful interactions.
- Cost Savings:
Cloud telephony offers predictable subscription pricing that scales with usage, reducing upfront expenses and operational costs, and allowing better budget control.
- Robust Security and Scalability:
Cloud telephony providers implement robust security measures, including data encryption, firewalls, and regular backups, to protect sensitive business communications. These systems are designed for high availability, providing dependable service with minimal disruptions.
- Improved Sales Performance and Efficiency:
Sales teams gain access to powerful tools like call monitoring, recording, and CRM integration to analyse customer interactions and fine-tune sales tactics. Employees can communicate effectively from any location, which enhances responsiveness and overall productivity.
- Supports Remote Resources:
Cloud telephony enables employees to make and receive business calls from anywhere with internet access. This flexibility allows for distributed teams to stay connected with clients and colleagues, without the limitations of traditional phone systems.
- Enhanced Customer Engagement:
By directing calls efficiently and maintaining consistent communication channels, cloud telephony significantly improves customer experiences. Features like IVR, call queuing, and personalised messages support faster resolutions and higher satisfaction rates.
What is VoIP, and How Does it Work?
VoIP, or Voice over Internet Protocol, is a technology that allows users to make calls over the internet instead of traditional phone lines or cellular connections. Modern VoIP services offer video calls, file transfer, group calls, and much more. It’s also called IP telephony or internet telephony. VoIP calls can be made using various devices, including computers, smartphones, tablets, specialised VoIP phones, traditional phones connected to an adapter, and other internet-connected devices.
Some popular implementations of VoIP technology are FaceTime, Google Voice, Skype, and WhatsApp. WhatsApp. In VoIP calling, the analogue voice signal is converted into a digital signal and transmitted over the internet using data packets. This reaches the VoIP service provider, who routes it to the receiver, where it’s converted back to a voice signal.
The receiver could be a user of the same VoIP service, a mobile phone, or someone with a landline, if the VoIP supports calling them. Depending on the service, they may not be required on the same service as you or have a VoIP phone.
Cloud Telephony Vs VoIP:
| Factor | Cloud Telephony | VoIP |
| Definition | Phone services are delivered fully via cloud servers. | Technology to make calls over the internet or IP networks. |
| Infrastructure | Cloud-hosted, managed by a provider. | Can be on-premises or cloud-hosted; may require hardware. |
| Scalability | Highly scalable, allowing for instant addition and removal of users. | Depends on infrastructure; may need hardware upgrades. |
| Maintenance | Provider handles all maintenance and updates. | Maintained by the organisation or service provider, depending on the setup. |
| Features | Offers advanced features like IVR, call analytics, and integrations. | Basic calling features with variable advanced options. |
| Cost | Subscription-based, pay for what you use. | Lower initial cost for software, but potential hardware/maintenance fees may apply. |
| Integration | Easily integrates with cloud apps like CRM and support tools. | Integration is possible, but it may require additional setup effort. |
| Security | Managed by a provider with robust measures like encryption and backups. | Varies with deployment; depends on organisational security implementations. |
What Should You Choose?
Consider factors such as business size, budget, and communication needs when making a choice. Choose Cloud Telephony if –
- You are not interested in installing additional infrastructure and hardware in your office premises
- If your teams require advanced features like auto attendants and IVR to run smooth communication.
- If your business communication system needs a scalable communication solution that is adaptable and flexible to new needs.
VoIP is more suitable when:
- Your office already has VoIP-compatible hardware, but wants a less expensive system
- You require more control over your communication system.
The basic understanding of Cloud telephony Vs VoIP stems from the fact that both are efficient models that can improve business communication with users. Both are cheaper to set up and maintain compared to traditional phone systems. When selecting the right telephony solution, consider business needs, including the ability to support remote work and facilitate global communication. Need more clarity? Reach out to us.
