What Is A Could Phone System And How Does It Work?

More businesses are moving to cloud-based phone systems. Should your business move, too? An effective and reliable method of communication is a cornerstone of any successful business. Cloud-based phone systems, also known as internet calling or Voice over Internet Protocol (VoIP), have become extremely popular with the increased ubiquity of cloud storage across all business aspects. Still, they may not be right for everyone. In this article, we’ll explain what is a cloud phone system and how does it work. Read on to see if it’s right for you.

A cloud phone system is a business VoIP (Voice over Internet Protocol) telephone system that allows you to make and receive business phone calls through your internet connection.

How Does a Cloud Phone System Work?

The functionality of a cloud phone system is straightforward yet powerful. Here’s a simplified breakdown of how it works:

1. Voice Data Conversion: When you speak into a cloud phone, your voice is converted into digital data. This process is similar to how your voice is recorded by a microphone and saved as a digital file.
2. Data Transmission Over the Internet: The digital voice data is then compressed and sent over the internet to the recipient. This is where the “cloud” comes in; the data doesn’t travel through traditional phone lines but through internet protocols.
3. Data Reception and Conversion: When the data reaches the recipient’s phone, it is decompressed and converted back into sound waves, allowing the recipient to hear your voice.

This seamless process happens almost instantaneously, providing a communication experience similar to, if not better than, traditional phone systems.

Cloud Phone System Pros: Cost Savings

Small businesses that switch to VoIP reduce the cost of their local calls by up to 40%. Those same small businesses reduce the cost of their international calls by up to 90%. Screenshot showing typical monthly costs of a traditional phone system.Screenshot showing typical monthly costs for a business VoIP system.

A sizable number of cloud VoIP providers charge less per minute than leading landline phone services. No matter your call volume and usage, it’s almost guaranteed that a cloud-based phone system will cost you less each month than a landline service. As a result, this is how a could phone system work.

Unlimited-minute packages are economical for call centers with high traffic, while Pay-As-You-Go pricing models can accommodate those businesses that use minutes sparingly. So, platforms don’t require you to purchase expensive hardware that needs maintenance and installation, saving you quite a bit, judging from the example above.

Geographic Flexibility

Screenshot showing the geographic flexibility of a cloud system. Cloud phone systems offer geographic flexibility that allows you to work remotely without hassle.

You don’t have to be next to your desk to make calls on a system. Cloud phone systems allow you to work anywhere with a working Internet connection. We can also set up an IP phone, plug in your laptop, or use a softphone on your smartphone to make phone calls from your cloud phone system. This means you can work from home, on the go, or as a full-time remote employee.

Nextiva is a good cloud phone system for remote teams. It has lots of advanced features and excellent support. You can easily add remote team members and set up call forwarding rules. Moreover, Nextiva’s mobile and desktop apps are easy to use. This makes it a great option for remote teams when hands-on training is difficult. Plus, Nextiva’s unified communication platform comes with built-in CRM and live chat features.

Transitioning to a Cloud Phone System: A Step-by-Step Guide

If you’re ready to make the switch to a cloud phone system, here’s a simple step-by-step guide to help you get started:

1. Research Providers: Start by researching different cloud phone system providers and comparing their features, pricing, and customer reviews.
2. Choose the Right Plan: Once you’ve selected a provider, choose a plan that best suits your business needs. Consider factors like the number of lines, required features, and potential for future growth.
3. Port Your Existing Numbers: If switching from a traditional phone system, you must port your phone numbers to the new cloud system. Most providers offer assistance with this process to ensure a smooth transition.
4. Set Up and Configure: Once your numbers are ported, it’s time to set up and configure your cloud phone system. This typically involves creating user accounts, setting up call routing, and configuring desired features.
5. Train Your Team: To ensure a smooth transition, train your team on using the new cloud phone system. Most providers offer training resources and support to help with this process.
6. Monitor and Optimize: After your cloud phone system is up and running, monitor its performance and gather feedback from your team. Use this feedback to make necessary adjustments and optimize your system for maximum efficiency.

Unified Communications

The cloud phone system is a perfect enabler of unified communications. Unified communications are all about making a wealth of communications channels and options into a single point of access. So, cloud unified communications lead to more consistent and convenient communication with colleges and customers by allowing them to use their preferred channels.

So, when you are on a phone call through the desktop softphone and have to leave for a while, instead of having to hang up the phone, you can forward the call to your mobile phone and keep on the conversation. Some providers also offer values in enhanced collaboration, such as instant messaging, presence, CRM integration, and more.