Cloud Phone Systems vs VoIP Key Differences Every Business Should Know

1. Cloud Phone Systems vs VoIP: Key Differences Every Business Should Know https://communicationsolutionsaustralia.wordpress.com/2025/08/12/cloud- phone-systems-vs-voip-key-differences-every-business-should-know/

2. Cloud Phone Systems vs VoIP: Key Differences Every https://www.sooperarticles.com/communications-articles/voip-articles/steps-choose-voip-connection- your-office-1783418.html Business Should Know A significant mistake that people commit is that they start assuming a cloud phone system and VoIP are similar solutions. However, the fact is that they are completely different in terms of infrastructure and functionality. To some extent, their functionalities are the same, but then, there are numerous dissimilarities as well that make them completely different from each other. This post covers some significant differences between cloud phone systems and VoIP technology. Infrastructure Location The entire hardware and setup of the cloud phone system is at the third-party service provider’s location. This means the entire call processing process, including functions, management, and data storage, is handled remotely by the third-party service provider. This does not happen with VoIP, as the setup can be on-premise or in the cloud. A VoIP system requires physical hardware installation, and it relies entirely on the Internet-based infrastructure. Ownership and Management Cloud phone systems are managed and maintained by a third-party service provider, and this means the business owner has no stress related to managing the telephone infrastructure. But the situation is entirely different in VoIP, as ownership and management both are the responsibility of the organisation deploying the VoIP system. As mentioned above, it is their choice whether they want an on-premise VoIP system or a cloud-based one. Scalability and Flexibility The cloud PBX for business will come with higher scalability and flexibility, and it allows organisations to add or remove new users, phone lines, and features without any stress. No physical hardware changes are required for this, and this remains a huge USP of cloud phone systems. You will see a VoIP system depending on the capabilities of the office premise hardware in terms of

3. scalability and features provided by the VoIP service provider, based on the plan you have chosen. Integrations and Features Both cloud phone systems and VoIP phone systems come with a vast range of advanced features, and these features are largely similar. Your cloud PBX for business will have highly advanced features like IVR, call routing, call recording, voice to email, call analytics, etc. You can add more features if you want, simply by contacting your service provider. VoIP has both basic and advanced calling features, and the best thing is that the VoIP system can be customised and expanded with additional features. Your VoIP system will showcase features like call forwarding, call waiting, voice mail, and so many more, with integrations and third-party applications. The primary issue with traditional landline phone systems is that they restricted mobility, and the likelihood of missing a call was very high. Cloud phone systems emerged in the scenario and eliminated all these shortcomings. These cloud phone systems are based on Internet calling technology and utilise VoIP (Voice over Internet Protocol) systems to make and receive calls from anywhere in the world. Let's explore some additional details about cloud phone systems and learn about the features this system offers. What Are The Advantages Of Cloud Phone Systems? Cloud phone systems and cloud PBX for business come with numerous benefits, which we have reviewed below. Easy scalability The most prominent feature of cloud PBX for business is that scaling is straightforward, and this means adding and removing new phone lines is very smooth. You will not need any hardware or a skilled IT technician for this. Affordable Pricing A cloud phone system is significantly more affordable for businesses compared to traditional phone systems. You save a lot of money as no hardware is required,

4. and the set-up fees are also very low. The maintenance costs are reduced, and you also receive advanced calling features that ensure a higher ROI for your business. Another prominent feature of the cloud phone system is that it comes with numerous useful features for businesses. These features make business communication more streamlined and effective. The most advanced calling features include internet fax, call forwarding, IVR, caller ID, and others to make team collaboration and customer service more effective and efficient. Enhancing Efficiency And Productivity Contact centre software and solutions help teams receive calls more efficiently and resolve more problems faster. They come with incredible features, such as automatic routing to match callers with agents, making them capable of handling the calls. They also store data and chat history that agents can access immediately to provide resolution to customers without delays. 24/7 Self-Service Support Most contact centre software has 24/7 self-service support available to resolve issues before they escalate. They allow callers to chat with the help of an IVR to resolve routine problems as well as more complex and technical issues. This means only the most complicated and sensitive subjects will be sent to live agents to address them manually. Reduced Errors And Better Chances Of Improvement High-quality contact centre software is capable of keeping records and data in one place. They ensure that no time is wasted and there are no chances of human errors at all. They are incredibly supportive during high call volume periods as they will record customer interactions and provide solutions at their fingertips. Deliver Better Customer Experience Modern-day contact centre software is designed to improve the customer experience, as callers can become frustrated quickly when waiting for a long time without receiving a resolution to their problem. Frequent disconnections also give birth to annoyance, and this is where contact centre software can be beneficial. They provide improved customer confidence, and all the information is available

5. at the fingertips to ensure that the problem is resolved with minimum human intervention. The contact centre software is trained to provide personalised services with the help of tele-callers, as they have all the data related to calls and communication saved. They understand callers and interact in such a way that the experience becomes personal, and in turn, a company gets happier customers. They also keep sensitive information safe while improving your team and contributing towards the company’s well-being. What Is A Cloud Phone System? Cloud phone systems are similar to regular PBXs, but there is a slight difference that the servers handling the calls and the entire communication are handled and managed by a third-party service provider. You can access the entire setup through the Internet, and now it is a popular solution for businesses in Australia. It is a more accessible and convenient solution, and cloud PBX for businesses comes with the following benefits. Easy to set up and adjust You won't need expensive servers You can control it from anywhere using a simple web interface Lastly, it can operate smoothly across various branches or locations How Do Cloud Phone Systems Work? The working of cloud phone systems is easy to understand, as the setup allows you to make and take calls over the Internet and there is no use for traditional phone lines. This means all the voice calls are sent over the Internet and this makes it easy to replace the old traditional phone systems. There is an outside server managed by a third-party service provider that handles both incoming and outgoing calls and the entire communication. https://communicationsolutionsaustralia.wordpress.com/2025/08/12 /cloud-phone-systems-vs-voip-key-differences-every-business-should- know/