What is cloud telephony & how does it work?

Want to cut business costs whilst increasing business performance? Of course you do! This is where cloud telephony can come in to help. With the Big Switch Off happening in 2025, if you’re using PSTN technology and phone equipment, you’ll no doubt already be looking at alternative internet-based phone systems before analogue systems cease to exist.

Here, we’ll explore all that cloud telephony has to offer, including how exactly it works and the benefits it could have on your business.

What is Cloud Telephony?

Cloud telephony allows businesses to operate their phone systems simply with an internet connection. You may have also heard it be referred to as ‘cloud calling’. This is a type of unified communications as a service (UCaaS), which is managed and hosted through a third-party provider, so employees can make and receive calls from their desktop or mobile headsets, for example.

Since cloud telephony is internet-based and runs in the ‘cloud’, it’s faster, better quality, more reliable (as long as you have a strong internet connection), and includes more features that can benefit the business. This essentially eliminates the need for traditional wired phones and phone lines which is ideal for the Big Switch Off.

How Does a Cloud-Based Phone System Work?

If you’re not particularly tech savvy, we know it can be a little tricky to wrap your head around how a cloud-based phone system actually works. In its simplest form, cloud telephony works when a number has been dialled, a third-party VoIP system will route the call through the internet. It then converts analogue voice signals into small data packets that are relayed over the internet connection. The entire process takes mere seconds.

With this system in place, you’ll need to kit out the office with VoIP desk phones rather than traditional landline phones, which connect to your existing internet network. You can also use an app installed on computers, tablets or any work smartphones for a flexible and easy way to make business calls. Since cloud telephony is in the cloud, you’ll also be able to have access to an online dashboard where you’ll be able to manage the phone system, view any call analytics and add new users. 

The Benefits of Cloud Telephony

With the way we work transforming into a fully digital approach, you’ll be needing to update your technology and modernise the workplace in order to keep up and retain customers. If you’re still unsure about whether or not cloud telephony is the right direction for your company, take a look at some of the top benefits below:

1. Cost-Effective

First and foremost, cloud telephony is very cost-effective compared to the older landline phone as it uses your current internet connection instead of needing a separate system, phone lines and additional add-ons. This also means that it’ll rarely need any expensive maintenance work either, and you can enjoy lower rates on any long-distance calls too.

2. Flexible

With remote and hybrid working now the new normal, you’ll need a phone system that employees can access easily, no matter where they are. Cloud telephony and VoIP systems allow this to happen, making it an extremely flexible solution. Employees will also have access to a secure instant messenger to communicate quickly and efficiently and share any required data between teams.

3. Secure

Understandably, security is a great concern for all businesses, and with the internet, threats can be more frequent. However, VoIP and cloud telephony provides a ‘secure voice’ service, which keeps calls and any other communications between co-workers and clients ultra-secure. With tight regulations and plenty of top security features, even those working from home will be able to use the system without compromising on security, so your confidential calls and data will be safe.

4. Advanced Features

With cloud telephony, you’ll have the option to add on an abundance of useful features that will boost productivity, help increase sales, focus on the right tasks and work smarter overall. Below is a list of some of the most popular business features:

  • Auto-attendant
  • Call forwarding
  • Video conferencing
  • Screen sharing
  • Call recording
  • Call analytics and reports
  • Easy integration with CRM software
  • HD audio and video quality 

5. Increased Scalability

Cloud telephony has no limit on growth. So, if you’re a startup company wanting to add new employees to your phone system, it can be done seamlessly in just a few clicks, rather than having to contact your phone provider and pay every time you want to assign someone a phone line. 

Quick and effortless to manage, you don’t need qualifications in IT to learn how to update your phone system and add or remove features whenever needed. With no delays or extra costs, you’ll be able to maintain your customer relationships as you grow. 

For more information, take a look at our business broadband and phone systems and contact our team today, who will be happy to chat through the options with you.

Also, make sure you check out our blog on VoIP phone systems and why you should switch to one.

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