Cloud phone systems mobilize off-site data centers and cloud servers to host your telecommunications infrastructure.
When we talk about “the cloud”, we’re referring to the practice of distributed computing, in which computational tasks like data storage and processing are carried out by many individual machines, often spread out in various locations.
Cloud services use the internet to move tasks away from hardware such as on-premise PBX equipment, to large data centers run by cloud service providers. Cloud VoIP phone systems have the same functions as traditional systems but without the need for physical phone lines and on-premises telecoms equipment.
| Traditional phone system | Cloud-based phone system |
| Specialized equipment needs to be set up and maintained on-site. | No specialized on-site equipment is needed. |
| Minimum-term contracts and high setup costs tie you into a single provider. | Flexible, cost-effective payment plans. |
| Lengthy request process to make service changes. | Easily scalable, with the option to add or repurpose lines as needed. |
| Pay technicians for hardware installations. | Pay nothing for a fast implementation. |
| Maintenance requires specialist technicians. | Manage the system yourself from any device. |
Understand the different types of VoIP phone system available.
In the field of VoIP communications, interchangeable terminology and unnecessary jargon can often confuse people. Three terms that get thrown about a lot are hosted VoIP, cloud VoIP, and VoIP PBX.
Although all three are sometimes used interchangeably to refer to any VoIP phone system, they actually have different meanings.
A hosted VoIP system is any phone system in which all the equipment, servers, and data are hosted off-site by the service provider rather than on-site by the service user.
Cloud VoIP is a type of hosted VoIP that mobilizes a cloud environment. Often, the cloud service will be provided by a third-party provider.
Although all Cloud VoIP systems are technically a type of hosted VoIP system, not all hosted VoIP solutions use a cloud architecture. Some rely on a single server to manage important functions like call routing and call forwarding.
PBX stands for private branch exchange. In the pre-VoIP era, any organization that wanted to manage multiple phone numbers and be able to route and forward calls between different departments had to install a physical PBX system.
Thanks to VoIP, if you need enterprise-level functionality from your phone system, there’s no need to install or maintain any physical hardware. VoIP PBX uses ordinary computers and softphones to do the same work as specialized PBX machinery.
Just remember that VoIP PBX is not necessarily the same as hosted PBX, which specifically refers to an off-premises or cloud PBX system that uses VoIP.
Enlisting a cloud VoIP service means you use cloud technology to facilitate your VoIP calls.
Because VoIP is a set of protocols rather than a specific physical technology, cloud phone system providers take different approaches to meeting the communications needs of their customers.
8x8 provides what is known as Unified Communications as a Service, or UCaaS. This means we’re not just a telephone service provider, but also act as a platform for a wide variety of modern communications needs besides VoIP telephony. These include SMS, internet messaging, and video conferencing.
Getting started with UCaaS is usually as simple as choosing a plan that meets your business needs. Because connections are made over the internet, pricing for VoIP services is typically flexible and paid on a per-user- per-month basis.
If you anticipate your organization’s telephone usage growing, or you have no idea what your future requirements will be, you should consider a cloud-based solution for your VoIP service as they’re the most easily scalable.
A cloud VoIP provider enables you to expand your service and add new users in real-time. If you need more advanced features, for example, if you need to add international calling to your plan, a cloud solution like 8x8 facilitates these changes easily through an app or control panel.
When you enlist a VoIP service for your communications requirements, there are different options when it comes to your technical setup.
Because VoIP uses the internet, there’s no need for dedicated desk phones. Nonetheless, this does remain a popular option, and there are a host of specialist IP phones available for making and receiving VoIP calls.
On the other hand, many organizations, including call centers that handle a large volume of outbound and incoming calls, opt for a combination of computer, softphone, and headset, in order to leave agents’ hands-free to type.
This also has the advantage that a headset is more portable than a desk phone, meaning it can be combined with a laptop for a fully VoIP-enabled remote work setup.
To get connected to a cloud-based telephone system all you need is an internet connection. Depending on what kind of telecommunications infrastructure you have available in your area, your internet connection might rely on DSL, cable, or fiber-optic networks.
You also need to take into account the bandwidth requirements for making VoIP calls. Each concurrent call will use 80-100 Kbps of bandwidth, so when subscribing to a VoIP service, make sure you have a strong enough internet, too.
| Number of concurrent calls | Recommended bandwidth |
| 1 | 100 Kbps |
| 5 | 500 Kbps |
| 10 | 1 Mbps |
| 50 | 5 Mbps |
| 100 | 10 Mbps |
Bandwidth can impact VoIP calls in several ways. In order to maintain uptime and consistent call quality, you should ask yourself the following four questions.
- What is the upload and download speed you get from your internet service provider?
- Do you run other applications or services on your network concurrently?
- If yes, how much of your bandwidth do they use?
- Does your network have a Quality of Service (QoS) setting that allows for you to optimize for VoIP?
Get all the features of an on-premise PBX and more with the advantages of a cloud architecture.
Cloud PBX, sometimes known as hosted PBX, works in much the same way as a traditional PBX system. Its primary function is to route calls to the right department or user extension. A PBX auto-attendant can be used to automate this process.
Where a hosted system differs from legacy PBX solutions is that it moves the functions of on-premises PBX hardware to the cloud. Instead of connecting telephones using on-site machinery, a hosted PBX system connects them in real-time to secure data centers over the internet.
Because it operates over the internet, a cloud VoIP service combines the customer relationship management (CRM) advantages of enterprise-level PBX with the advanced features of cloud telephony. These include video and text chat functionality that you can use from desk phones, computers, and even mobile devices, as is the case with 8x8’s mobile app.
