In this blog, we will cover:
- What Is Cloud Telephony?
- How Cloud Telephony Works
- Analog Phone Systems vs VoIP Phone Systems
- Why Businesses Are Switching to the Cloud
- Key Benefits of Cloud Telephony
- Cloud Telephony System Drawbacks
- Steps to Set Up a Cloud Telephony Platform
- How Do Users Manage Cloud Telephony Using the Call Panel?
- FAQs about Cloud Telephony
What Is Cloud Telephony?
Cloud telephony is a virtual phone system that works through your internet connection. This solution uses VoIP technology to transmit calls via the internet.
You can integrate cloud phone solutions within your existing system, which means there is no need for traditional equipment or hardware. Since it is not attached to one specific location, users can make and receive calls from any location or device. This enables businesses to expand beyond their immediate geographic boundaries and enter new markets cost effectively.
With cloud telephony, businesses can make and receive calls simultaneously, route calls to different locations, access international voice coverage, expand globally from any location, and enjoy advanced communication features such as international call forwarding and advanced routing.
It is an internet-based phone system, and it can be in the cloud, hosted yourself, or aligned with a third-party host. Typically, the platforms are in virtual machines in data centers.
How Cloud Telephony Works
Cloud communications providers build, operate, and maintain standardized telephony platform offerings on the server, with customers gaining remote access via the internet. When you dial a phone number, your service provider handles the routing, converts analog voice signals into data packets, and transmits them over the internet connection. That is how it connects your phone to the person you are trying to reach.
For example, if a business advertises its phone number on its website and a customer decides to call that number, the cloud telephony provider’s system receives the call and routes it to the agent’s desk phone. The agent answers the call. And at the same time, if any other customer contacts a company for services, the network, recognizing that the first service agent is busy, routes the call to the second agent in the sequence who is sitting idle.
Analog Phone Systems vs VoIP Phone Systems
A VoIP phone system is different from an analog phone system. An analog telephone connects directly with the PSTN, the public switched telephone network, through dedicated landlines, and phone calls are facilitated by the local telephone company, requiring a direct connection to a phone jack. IP phones connect to the telephone network via a VoIP provider through the internet service. It turns the audio into data packets and transmits them using IP, internet protocol. The provider’s data center then transforms the signals into analog and transfers them through to the PSTN.
Since SIP phones do not need dedicated landlines, it is easier to scale an office with VoIP. With a traditional phone system shared among multiple employees, an on-premise PBX is required, and expansion becomes much more challenging because station cards, licensing, and power supplies all need to be considered. VoIP is definitely easier for scaling.
Why Businesses Are Switching to the Cloud
The advantages and the reason businesses are switching to the cloud telephony are closely tied to how quickly the pandemic changed everything and accelerated businesses adopting cloud. Physical offices closed, but businesses still needed a cloud phone system because they did not have a physical location with a PBX. They also needed mobile solutions so employees working from home or on the road had access to the system on mobile or desktop. Staff working from home need a remote solution to work as if they were in the office and make and receive calls as if they were sitting at their desk.
Key Benefits of Cloud Telephony
Cloud telephony has many advantages like:
- Automation and Simplified Deployment
- Fast Expansion and System Management
- Cost Efficiency, Flexibility, and Business Continuity
- Scalability, Operational Efficiency, and Analytics
Let’s discuss them!
Automation and Simplified Deployment
Deploying a cloud system can be automated. Setting up each phone manually is no longer necessary. Instead, a template can be created and sent out to multiple phones, meaning deployment of physical IP phones is fast, smooth, and easy. The ability to customize and control the system from a single interface is often quite invaluable.
Fast Expansion and System Management
A telephone platform can run through the cloud, allowing businesses to add or remove lines in minutes. Companies can grow their telecom system without waiting for a third party to make changes, bring new expansion hardware to site, or increase licensing. This is especially valuable when adding additional employees, either in-house or remotely, or when firing up a new location somewhere else.
Cost Efficiency, Flexibility, and Business Continuity
Cloud telephony is often described as more cost efficient. By offloading hosting and management responsibilities to a cloud communications partner with subscription and pay-per-use models, organizations can reduce infrastructure overhead costs. It is flexible, because an employee with a cloud-based telephone number can take and make inbound and outbound calls anywhere they have an internet connection, enabling more seamless mobile work.
It is resilient, because while a fire or other emergency event could take down an on-site PBX system, cloud calling services tend to offer more resilient services and more reliable business continuity. Most cloud telephony services have built-in failover modes that make sure a backup is available if a problem occurs with a connection.
Scalability, Operational Efficiency, and Analytics
Ease of expansion is pretty incredible with cloud telephony. Ease of contraction helps with staff turnover, and it can really help with an increase in call volume. Other key reasons are better automation, improved control so businesses can better manage their own platform, and scalability.
It is streamlined, because organizations do not have to bear the burden of implementing, maintaining, troubleshooting, and updating on-site systems. Third-party providers can handle that infrastructural upkeep and upgrades. It also brings transparency, as many UCaaS platforms provide rich data analytics offering information about user behavior, call flow traffic, and insight into optimizing employee efficiency.
Cloud Telephony System Drawbacks
While Cloud telephony has several cons, no technology is flawless. There are inherent challenges that might be of particular interest to your business, making Cloud telephony less attractive as an option.
Prices can add up
Cloud telephony systems often charge on a per-user monthly basis. Over time, these costs can add up. Sometimes you can be charged for add-on features you don’t even intend to use or incur metered prices for other features you heavily use.
Doesn’t work without a stable internet connection
Cloud telephony needs high-speed broadband internet connections. It uses Wi-Fi to function, but Wi-Fi doesn’t work well through walls. A wired internet connection like fiber or cable is always preferred. Microwave and other options are often too unstable to accommodate a VoIP system. For larger offices, consider adding a mesh Wi-Fi network for maximum speed and coverage. If your internet connection fails, your cloud-based phone system could cease to work.
Location info is limited for emergency calls
This may not be an issue for most people, but internet-based phone calls to 911 do not always have accurate location data attached.
When internet-based calls are directed to an emergency call center, known as a PSAP, operators may not automatically know your location or phone number. By default, calls are usually routed to the nearest PSAP based on the account holder’s registered address.
To deal with this matter, you have to update your cloud phone system’s fixed address assigned to each business phone line via enhanced 911 setting. Consequently, when employees are working remotely, the address gets updated promptly.
Beside it, its highly recommended smartphones for internet-based calls because GPS data and cellular triangulation can pass location data instantly to nearby PSAPs
Steps to Set Up a Cloud Telephony Platform
To begin setting up VoIP, the process can be broken down into eight steps. This is a basic principle for upgrading to a unified communication as a service platform. This allows businesses to rely on telecom experts who manage the phone system rather than trying to become experts in-house or have someone full-time administering and supporting the phone system, which can be really costly and high risk, especially for a vital communication platform.
The steps may vary a little depending on which cloud provider or platform is chosen, but they are common steps regardless of platform.
Step 1: Choose Your Preferred Setup
Step one is choosing the preferred setup for the business and with the third-party provider.
When choosing a cloud platform, the first question is whether the business wants it managed, hosted, or hosted but self-managed. Provisioning and managing a phone system is not simple, so having access to basic self-administration and user management is very common and something to check when evaluating providers. Make sure there is a self-management tool or self-service portal.
Step 2: Audit Your Network and Internet
Step two is doing an audit of the network and internet connection.
Once the provider is chosen, the next step is a review of the network and high-speed internet. A proper audit is important. A rule of thumb is about 100 kilobits per second upload and download per line. Most internet service providers now offer gigabit speeds with business plans, so the current connection is more likely fast enough to accommodate a VoIP system, but assumptions should not be made. Voice calls use very little bandwidth compared with downloading major files or streaming.
Some home office connections might have slower upload speeds, such as some DSL connections, so businesses should be very careful when considering a cloud-based system with home workers. Their home office must have adequate high-speed internet to support the VoIP phone system.
Issues that can impact VoIP call quality are often related to the instability of a connection. Jitter and packet loss are two metrics to examine. A wired internet connection like fiber or cable is always preferred. Microwave and other options are often too unstable to accommodate a VoIP system. Old routers and other hardware gears can become a bottleneck and cause choppy audio therefore a proper examination of network hardware must be done. Wi-Fi works fine in most cases, but a wired connection is always better.
A VoIP speed test should be used to stress test the network and identify any potential issues in advance. As a result you will get gist of whether the connection can handle a VoIP installation. Businesses might also explore configuring QoS, quality of service, to prioritize VoIP packets and data so voice traffic is placed above other traffic, ensuring less latency and packet loss.
Step 3: Choose a Provider Based on Features
Step three is aligning with a VoIP provider based on the features needed now and in the future.
The decision should also be based on the features needed. Although pricing and security are important, the features like unlimited extensions, voicemail, auto attendant, IVR, call center features, conference calling, etc. are key. Businesses should look at what features people rely on now and what they are going to need in the future, and choose a future-proof solution.
Switching to VoIP is not just replacing a landline. It is an opportunity to move the business into the next century and get the features that increase collaboration, empower efficiency, and improve cross-department communications. That could include video conferencing, chat, call analytics, and other unified communication solutions, not just a basic phone system.
Providers should be checked for the right features, numerous redundant data centers, high reliability and performance, scalability, and security. Some platforms offer features typically found only on costly enterprise solutions, including unlimited extensions, voicemail, auto attendant, IVR, call center features, conference calling, call record, chat, and video calling.
Step 4: Invest in the Right VoIP Hardware
Step four is making sure to invest in the right VoIP hardware, like IP desk phones.
The fourth step is considering what VoIP hardware will be needed. This includes QoS hardware, network gear, and especially physical IP desk phone endpoints. Businesses are still using a combination of IP desk phones, desktop soft phones, and mobile cell phones. Once the provider is chosen, the next step is to invest in the VoIP hardware.
If phone calls are expected to sound great, it is worth investing in high-end proven IP desk phones. Features to look for include gigabit pass-through, power over ethernet, support of HD codecs like G.722 and Opus, and other necessary technologies.
It is also important to make sure phones can connect to VoIP headsets. Headsets allow users to walk around while on calls and keep both hands available to type and talk. Phones should support wireless headsets through Bluetooth, a dedicated headset jack, or an EHS electronic hook switch adapter.
A three-in-one headset can work with an IP desk phone, smartphone, and computer with a desktop soft phone.
Businesses do ask whether they can keep their old desk phones. It may be possible to use a VoIP adapter called an ATA, analog telephone adapter, to make the switch and keep analog phones, but this is typically tough and a little bit tricky. The VoIP adapter digitizes the analog signals, but this is also where voice quality issues can arise, so most businesses do move to new IP phones when making the transition to cloud.
Users can also have cell phones so they can be more mobile, work from home, or use a desktop, tablet, or smartphone mobile device. The trend is really a combination approach, both physical and soft phones. Staff using soft phones will require headsets, whether wired, wireless, or perhaps a three-in-one solution.
Step 5: Get or Keep Your Business Phone Numbers
The next step is determining how to retain or obtain business phone numbers. Depending on the provider, a local phone number is typically included with the VoIP plan. Businesses can port existing numbers, select a local number, choose a toll-free number, or use vanity numbers. Local phone numbers are tied to the local area. Toll-free numbers are 800 numbers untied to a location and can seem a little more professional and trustworthy to customers. Customers also do not have to pay when calling support lines. Vanity numbers are memorable toll-free numbers that spell out specific industry words, such as 1-800-Flowers.
If a business does not want a new number, it simply needs to understand the porting process and how old numbers will be moved from the local telephone company to the new cloud provider. Keeping existing phone numbers with porting should be easy as long as the vendor knows what they are doing. Number porting is how phone numbers are transferred from the existing service provider to the new one.
After picking a business cloud system plan, the business typically fills out a letter of agency, which provides all the necessary details on the phone numbers so the provider can handle the porting process with the old provider. Temporary numbers can also be requested so the new platform can be used right away while waiting for numbers to be ported. Call forwarding can be set up with the old provider in the meantime.
Porting can take anywhere from 7 to 14 days, though some providers handle the process in around five to seven business days with a seamless process.
Step 6: Design and Program the System
Step six is starting to set up the VoIP phone system, figuring out how the system should be designed and programmed.
Once the provider is chosen, the system audit is complete, and the hardware is figured out, it is time to complete the design of the system. Businesses will likely work with an onboarding specialist or system designer. First, they need to develop an extension list with staff information, corresponding phone extensions and phone numbers, phone locations, and all the pertinent details for how calls should be handled and routed for daytime and nighttime operation. Once this information is compiled, the system is programmed in the back end, everything gets set up and hopefully tested, and then the phones are plugged in.
A decision also has to be made about whether the phones will use power over ethernet or AC adapters.
Step 7: Test the System
Step seven is testing the phones, VoIP lines, and the system.
While testing you must necessarily pay attention to audio quality, latency, and connection stability. Make pseudo calls to test that calls are clear and consistent, with no static or other signs of low-quality audio. There should not be significant delays between speaking and the receiver hearing it. Calls should not temporarily drop. In some cases, firewall settings may cause calls to drop after a certain amount of time, so while verifying connection stability, it is worth staying on calls for 15 to 30 minutes.
Lines should also be tested under high network activity, because network congestion can lead to dropped calls and choppy audio. Outbound caller ID should also be checked to make sure the proper business number is showing.
Step 8: Train Your Staff
Step eight is training staff and monitoring.
Staff should receive training to really utilize the new system and features and have a total understanding of the technology. For small businesses, a switch to VoIP often represents the first time they have meaningful business features on their phone system, so these calling features may be unfamiliar.
Training sessions of up to 30 minutes in a group of 10 agents can be beneficial to equip agents of all the key features and how to use them. This is important to keep a steady pace through the learning curve. Make sure that the training materials, training videos, user manuals, online guides, and quick reference guides are easily accessible to all the agents and are easy to understand.
Now that the system is set up, the next question is: How do users actually operate cloud telephony? The answer is through the call panel.
How Do Users Manage Cloud Telephony Using the Call Panel?
The call panel acts as an operator panel for users, and every user gets access to it with no extra charge. From there, users can see a lot of information, such as who is online, current status, whether someone is making a call, and even outbound call details, depending on permissions. Everything inside the call panel is permissionable by the PBX admin or UCaaS admin.
A high-performance call panel can offer users an intuitive interface to use and manage the phone system. Users may get access to active call goals on the system, personal contacts, company contacts, conference room information, queue visibility, and wait times. It can also allow system administrators to control user permissions for improved visibility and management.
The call panel can include a main navigation bar across the top of the screen that engages users with all-in-one application features. It allows easy management, including managing personal and global contact lists, and security through permission-based access.
Some platforms offer tools that suit almost any basic call center requirement. Users can view and manage queues, view statistics, and see waiting calls. Conference room management can support remote conference calls, including up to 25 video calls and up to 100 voice calls depending on the number of lines.
Voicemail administration can allow users to check voicemail, record personal greetings, record company greetings, and access call detail records. Users can view inbound and outbound calls, adjust date ranges, and control callback features. Some platforms also provide video conferencing with screen sharing and chat, as well as SMS and MMS support for quick messages.
Mobile soft phone apps can be installed on Android or iOS devices, and they can also work on tablets so people can really work anywhere, anytime. This can elevate productivity.
Users can also update their avatar, change their password, enable two-factor login, manage call forwarding and follow me settings, manage do not disturb and call waiting, and even change their 911 location in real time if they have permission and multiple 911 locations.
Some platforms also include chat as a beta feature, with public rooms, private rooms, direct messages, and SMS. Users can send outbound SMS, receive inbound SMS, start new conversations, and get pop-up notifications that take them directly into the chat or SMS thread.
FAQs about Cloud Telephony
1. What is the difference between Cloud Telephony and Traditional Phone Systems
One of the biggest differences between cloud telephony and traditional phone systems is that you no longer need that big PBX on your wall. You do not need to house a phone system or any hardware at your location, which means far fewer headaches if you do not have the resources for someone to oversee your equipment on site. There are also no outages due to your hardware failing in your office while waiting for a technician to rush to site.
2. Distinguish between Cloud Telephony, VoIP, and UCaaS
Cloud telephony is a type of unified communications as a service. VoIP is usually just a voice service provider for inbound and outbound calls. UCaaS is essentially looking at all business communications and putting them over internet protocol, with the provider offering all-inclusive services. VoIP is single-mode. UCaaS is multi-mode: texting, chatting, video conferencing, screen sharing, video meetings, and other modes of communication.
3. How Do Cloud Telephony Providers Ensure Security and Reliability?
Security is handled by the provider because it is a cloud application in the provider’s own data centers, managed by the provider. Users do not have to worry about security because the provider is charged by the user and it is the provider’s job to keep the system secure. Two-factor login is often strongly encouraged, both for the call panel and the admin interface..
4. Can Users Manage and Maintain a Cloud Telephony System Themselves?
Users are generally able to do some of their own maintenance. The design is self-administration. From buying services to adding more phone numbers, changing user counts, adding and removing users, adding phone numbers in real time, removing phone numbers in real time, and adding additional 911 locations, all of that can often be managed directly. The whole phone system can be changed, and support teams are still available to help with setup and configuration questions.
