With the transformation of the company communication, more than ever it is vital to remain connected in a manner that is efficient and economical. The traditional phone systems are now being substituted with more innovative solutions like Cloud Telephony and VoIP (Voice over Internet Protocol) with the emerging advanced technologies. These two innovative technologies present their own benefits and can be used as potent instruments to improve the communication infrastructure.
This blog will serve as a detailed comparison of both Cloud Telephony and VoIP on the advantages and disadvantages and offer insights on which one is more appropriate to your business communication requirements.
What is Cloud telephony?
It is a form of unified communications as a service that enables business to run a business phone system with the use of internet.
Cloud Telephony services, also referred to as cloud calling, offers business voice services to its clients which are hosted and operated by a third-party operator. Cloud phone system usually in form of VoIP(voice over internet protocol) is a unity of voice calls, messaging, and video calls, and file sharing on one platform through your companies internet connection.
What is a VoIP phone system?
VoIP service is very reliant on the use of internet. It also involves the surveillance of any form of hardware and software malfunction.
VoIP Phone system converts your voice into data packets through the use of microphone and receiver. Then it sends it through the network and through the internet. This data is then decoded and played on the other end of the phone allowing a recipient to hear it.
How does a cloud telephony system work?
Just like other VoIP solutions, business cloud telephony systems work by converting voice signal (analog) to data packet and transmitting it via the Internet. In the event that the user clients a VoIP desk phone or a softphone operated through a cloud telephony service provider and platform, the call is directed through a third-party VoIP service provider.
The on-site PBX systems have been rendered irrelevant with cloud PBX phone systems. Using a cloud PBX, you are given the option to have a fully web-based phone system or use an app, which means no physical PBX (private branch exchange) hardware will have to be managed. The flexibility, scalability, and remote control of this modern solution make business communications very easy, without the complexity of on-site equipment.
Business Cloud telephony platform allows the user to make and receive incoming calls through an internet connection on desktop or mobile devices. When a business incorporates a cloud telephony platform and services, they engage a provider to develop, operate and maintain the telephony platform on their server.
How does VoIP work?
VoIP is similar to any other information that you transfer over the internet. It converts your voice into a digital representation of voice in codecs and transmits it on an Internet Protocol network. VoIP packets can be sent on any VoIP enabled network, e.g. local area network.
On getting back end, the packets of data are once again converted into sound hence communication of the two or more parties is possible.
The solution consequently enables you to make the calls using any computer, VoIP phone, through the internet.
Under VoIP, phone calls can be switched between the internet based solutions and the traditional phones. This enables you to contact your customers in their devices.
VoIP phone system stores all your data in cloud and which you can view using online dashboard. You can edit your contact list and make some other settings and automation on this dashboard.
Key Reasonable Differences between Cloud Telephony and VoIP.
VoIP phone system is also a subgroup of cloud telephony and it is defined to be the devices necessary to communicate via the internet based on the VoIP technology. The hardware will comprise VoIP end points, IP PBX servers, and VoIP gateways. Conversely, cloud telephony is an extension of VoIP which includes other features and services like IVR, call recording and call forwarding which are hosted on the cloud.
- Hardware
Cloud telephony is not a new technology that needs extra hardware installation since it is hosted and operated by the service providers. These services are accessed through subscription package in the Internet by businesses.
When a VoIP phone system is implemented on-premise, the organizations will be required to put in place and maintain the entire hardware and software. This may comprise several servers, POE (Power-over-Ethernet) switches, SIP trunks and a firewall. Service providers administer hosted VoIP services, and no extra equipment is necessary.
- Scalability
Cloud telephony is more flexible in the addition and removal of users due to the fact that the services are as cloud-hosted. Organizations are able to maintain the same infrastructure.
VoIP phone systems have been found to be very costly to upgrade and downgrade, particularly on-premise VoIP.
- Cost
Cloud telephony tends to be less expensive than VoIP phone systems since it does not need hardware installations (such as landline, PC, or laptop) and is less expensive to maintain.
The price of VoIP phone system varies based on the deployment of the system on premise or in the cloud. On-premise is more costly since it involves acquiring new software and equipment in addition to a high maintenance cost. Hosted VoIP is relatively less expensive because it is based on monthly subscriptions or yearly subscriptions.
- Storage
With cloud telephony, the data is stored in the cloud, and has to be accessed anywhere and anytime. Information is barely destroyed in case of calamities or disasters since it is copied in multiple data centers in order to be resilient.
In VoIP, there is a risk of data loss during catastrophes and disaster when users have stored data in their own data centers, whereas, in on-premise VoIP, it is configured in only one location, which is the cause of single point of failure.
- Maintenance
Cloud telephony does not have any maintenance costs because it is a cloud-based technology and is operated by third parties. Conversely, a technician might need to service the VoIP system in case external hardware is installed as it is the case with on-premise VoIP.
- Flexibility And Remote Work
Traditional VoIP systems may not be so flexible with remote work, or any off-site work unless it is coupled with other software or solutions that can provide remote work. Cloud-Based are internet-based, and therefore tend to be more effective in a company with remote workforce, multisite location, or flexible work arrangements.
- Features and Integrations
In VoIP, some features may be powerful, though, they may need several extra integrations or software that may also be an additional cost. Most cloud-based solutions include a collection of advanced features, such as CRM integrations or call analytics, which can also be introduced by software additions.
Cloud Telephony Advantages and Disadvantages
There are certainly some benefits that cloud telephony provides, and there are also challenges associated with cloud telephony. The following is more specific to each:
Pros:
- Call Without a Stressful Set-up: Cloud telephony systems typically make it possible to start making and receiving calls almost immediately after the setup.
- Develop stronger relationships with Advanced Features: Cloud Telephony systems are often built with additional features such as call routing, IVR (Interactive Voice Response), call recording, analytics and CRM system integrations. These features can enhance the relationship with the clients and speed up the correspondence.
- Connect With Apps you Use: Many cloud telephony platforms are integrated with popular business applications, such as helpdesk software, productivity software, and customer relationship management software. This integration facilitates data sharing and inter-platform workflow.
- Reduce Hardware and Maintenance Cost: Cloud telephony reduces maintenance expenses and does not require expensive hardware to support it since it is operated with the internet. The companies will be able to save on both hardware start up cost and maintenance.
Cons:
- Poor internet connectivity: It can cause dropped calls, and poor audio quality, and this may adversely impact the user experience.
- Risk Of Data Breach: It is a sensitive data of the calls stored in the cloud that is at risk of being exposed to the security risks such as the data breach and unauthorized access. Businesses need to take high measures of security to ensure that they are not victims of such threats, which would entail using encryption, and regular security auditing.
- The Subscription Can Be Expensive: With cloud telephony there is no longer the necessity to purchase upfront hardware and it may be that the subscription fee to the use of these services may increase over time. The overall cost of ownership (TCO) of a cloud telephony solution can be more expensive, depending upon what options are required in terms of features and scalability.
These advantages and disadvantages explain the tradeoffs that accompany the use of cloud telephony and emphasise the importance of evaluating business needs and priorities before making a decision.
VoIP Pros and Cons :
Your VoIP (Voice over Internet Protocol) analysis is right! The following is a little more explanation of each:
Pros:
- Reduce Costs on International Calling: VoIP is a common option where companies that need international communication due to the frequent nature of communication often have much cheaper rates of international calls when using VoIP services as opposed to traditional phone services.
- Work Freely With a Remote-friendly Solution: Best VoIP services provide employees with the ability to make and receive calls wherever they are provided there is an internet connection, and as a result, remote working becomes a possibility. In the case of remote teams, such a flexibility is a catalyst to productivity and work-life balance.
- Add and Subtract Your Calling Software: VoIP systems that companies are using are so scalable that it is easy to add and remove users, upgrade the features, and change their calling plans. VoIP can be a cost-effective solution to a company considering the fact that it is scalable.
- Enhance Workflows With a Variety of Characteristics: The vast majority of the most common VoIP capabilities such as call forwarding, auto-attendant, and others allow to optimize the workflow of communication.
Cons:
- You must have a stable internet connectivity: Low internet connectivity leads to call drops and low call quality, and this is not a good impression on the customers.
- Location tracking May Be Limited: VoIP relies on internet connectivity and not physical addresses, hence it may not be able to offer accurate location tracking during an emergency. This may prove to be a challenge to the emergency services in attempting to find the callers.
- You Can Face Security Threats: VoIP systems are prone to several security risks, to overcome the security threats, businesses should implement powerful security protocols that include encryption and fire walls.
One of the ways business can be able to make informed choices about deploying VoIP technology is by conducting research on services and features offered by VoIP.
Wrapping Up
Cloud telephony and VoIP are also similar in the sense that they require making and receiving of calls using the Internet. The fundamental disparities are on the manner of their application. Cloud telephony services are appropriate to businesses of all sizes because all they require is an active internet connection. The VoIP phone system (or IP PBX) on the other hand can involve new hardware, depending on whether it is hosted or on-premise.
FAQs
Q1. Is VoIP the same as a cloud telephony?
Cloud telephony is different to VoIP. Cloud telephony is a form of VoIP technology that presents VoIP services and infrastructure on the cloud that is operated by VoIP service providers. VoIP on the other hand is a type of technology that enables voice communications on the Internet.
Q2. What is the business example of cloud telephony?
Cloud telephony assists companies to manage the communication system in their companies, by availing necessary features such as virtual phone numbers, call routing, and IVR to enhance customer support, sales and marketing.
Q3. Would I require using a computer to make VoIP telephone calls?
Although the computer is not a requirement in making voice calls using VoIP, a broadband internet connection is required. Thus, in addition to a computer or a laptop, you can also call people using a mobile phone, tablet, and other gadgets with access to the internet.
Q4. Are VoIP calls secure?
There are few security breaches. Being part of the VoIP subscriber you can encrypt your calls which is a guarantee of total security. In case your company depends on the protection of data, which is critical, encryption is the best option.
Q5. Am I able to take my current handsets and use them with a Cloud Phone System?
Indeed, you can use your current legacy phone on a Cloud-based System. However, this comes at the cost of missing many sophisticated capabilities that are also provided by cloud-enabled devices. When switching to a cloud phone system, it is very advantageous to use gadgets in which you can make maximum use of the benefits.
Q6. What are the drawbacks of Cloud Telephony?
Cloud Telephony is susceptible to network outages since the quality of calls is subject to connection. There is also a risk of data breach that is minimal. Moreover, the prices of the cloud phone systems may grow and eventually exceed the start-up cost of a traditional on-premises system.
