What is cloud telephony and how does it work?
What is cloud telephony and how does it work?

Cloud telephony is an innovation that the business the chance to cut costs, while increasing agility and business performance. Now is a critical moment for businesses to consider adopting a cloud calling solution and the scalability it unlocks.

In this article we cover everything you need to know about cloud telephony and how it works.

What is cloud telephony?

Cloud telephony enables organisations to operate their business phone systems via an internet connection. Also known as cloud calling, cloud telephony is an example of unified communications as a service (UCaaS), which is managed and hosted by a third-party.

UCaaS technologies provide a means of consolidating an array of communications and collaboration tools in a low-maintenance solution. This offers staff a seamless way of using different types of communication and allows CRM systems and tools like Microsoft 365 to be integrated directly. This capability enhancement boosts the efficiency of teams and improves the overall customer experience.  

How does it work?

Cloud telephony works by converting analogue voice signals into data packets, then transmitting them via the internet. Once a number has been dialled, a third-party VoIP (Voice over Internet Protocol) service provider routes the call. This technology solution erases the need for traditional PBX systems (Private Branch exchange), which are typically costly, and must be managed by the user.

At the beginning of the process, an organisation will select a provider capable of delivering a telephony platform end-to-end. This includes the creation, operation, and ongoing maintenance of the service. Providers will often use a subscription model to enable customers to have access to their cloud calling solutions, with payments usually made monthly. This flexible structure promotes business agility by negating cumbersome contracts and unnecessary physical equipment.

While most welcome the opportunity to outsource maintenance efforts, some may still want to keep the option to have direct control. The powerful and flexible nature of cloud technology means that IT teams can still tweak and adjust system settings via an easy-to-use online dashboard. This provides the opportunity to have direct influence over call forwarding, numbers, and extensions.

What are the benefits?

Cloud calling is:

Future proof

Industries across the world are standing on the cusp of significant change, with emerging technologies set to mature and begin a new era of business. Because of this, organisations need room to scale and compete. Leading VoIP systems will allow businesses to add new features and users, while only paying for they need and use.

Secure

With increased innovation and opportunity, security has also become a greater concern for businesses. As threats increase and regulations tighten, VoIP provides Secure Voice and SIP over TCP, keeping calls and other communications within the security of your network. Crucially, VoIP enables organisations to offer remote and flexible working, without compromising security.

Cost effective

Above all, VoIP is a cloud-based phone system that alleviates the need to buy expensive equipment and conduct costly maintenance. This benefit is compounded when an organisation operates across multiple sites, because there is no need to buy and maintain duplicate equipment in other locations and countries. Other savings include lower rates on long-distance calls and pay-as-you-go efficiency.

Dynamic

Cloud calling solutions enable users to access a wide range of features, plus new features as they emerge, or as they are needed. An example of these features is the ability VoIP provides to integrate mobile devices, enabling incoming office phone calls to be diverted to mobile handsets. This ensures that effective on-the-go communication can be maintained. Other key features include call-forwarding, transfers, and efficient three-way calling.

Flexible

Remote working trends have made it essential that teams are able to make calls via the office phone system from anywhere. VoIP solutions provide this important capability that is so conducive to productivity and business continuity. In addition, VoIP also allows employees to securely use instant messenger to share data and communicate, promoting agility and saving time. The inflexibility of landline approaches is becoming a major inhibitor to growth and scale.

Industries across the world are standing on the cusp of significant change, with various emerging technologies set to mature and begin a new era of business. Because of this, organisations require as much room to scale and compete as they can get.

Cloud telephony vs VoIP

Most cloud telephony services use VoIP, but the cloud is not essential to operate a VoIP system. VoIP relates to how data is transferred, and in this case, it travels via packet-switched connections. This capability contrasts the traditional method that operated via the public switched telephone network (PSTN).

A VoIP phone system equips users with the capabilities of a traditional PBX system, but with increased cost efficiency and reduced hardware requirements. This method can be enhanced with cloud hosting, and functions by converting voice into digital signals. This enables users to seamlessly make calls from their computer, mobile device, or desk phone, from any location.

Basically, an enterprise can run a VoIP system on-site with a PBX model, or embrace cloud calling by outsourcing the responsibility to a third-party. For some organisations, depending on structure and industry, it may be preferable to adopt a hybrid cloud phone system and PBX model.

A cloud-based phone system

The biggest hurdle for many organisations is the disruption they anticipate when transitioning to a cloud telephony solution. Working with an expert provider is the best way to make the process smooth and effortless, enabling you to avoid downtime that affects your business and customers.

Discussing the support your organisation requires up-front benefits the process. Once this review is complete, a service level agreement (SLA) can be tailored to your company’s specific needs. However, not all providers provide the same level of support, with some offering 24/7 service monitoring, while others work on a 48-hour turnaround.

Security also requires extra attention at the outset when transferring sensitive, valuable data. Because of this, you need to be clear on whether the provider you are working with offers a compliant and bespoke comprehensive security policy. At BT, we maximise our security capabilities, even hosting our systems from different geographical locations to provide greater peace of mind.

Once the move is complete, your workforce will have immediate access to applications, databases, and other useful resources. This setup can be optimised by storing data in the cloud, therefore, reducing, or removing, the need for costly in-house server storage.

Above all, you need to have confidence in your provider when taking this step. A good provider must firstly demonstrate experience of working closely with other businesses like yours, supported by references and case studies. They must also be able to offer an end-to-end solution, requiring them to take ownership when overcoming challenges. Finally, the SLAs and security policies must suit your company’s needs. We offer this level of support, and more.

Related content

smiley man with headset in front of large screen
DIGITAL TRANSFORMATION
October 11, 2021
Your guide to the PSTN network switch-off
Men and women in offices
DIGITAL TRANSFORMATION
February 22, 2022
What is Unified Communications?
Businesswoman talking on the phone in office
DIGITAL TRANSFORMATION
February 09, 2021
Ten myths about digital phone lines
smiley man with headset in front of large screen
DIGITAL TRANSFORMATION
October 11, 2021
Your guide to the PSTN network switch-off
Men and women in offices
DIGITAL TRANSFORMATION
February 22, 2022
What is Unified Communications?
Businesswoman talking on the phone in office
DIGITAL TRANSFORMATION
February 09, 2021
Ten myths about digital phone lines