Learning Center

Higher Information Group news & insights from our subject matter experts in every solutions area.

5 Minutes to Read

How Does a Cloud-Based Phone System Work?

By Higher Information Group on March 18, 2022 | Technology Solutions

More and more companies are using cloud-based phone systems to grow and run their business. If you’re considering switching from a traditional phone system to one that is cloud-based, here’s what you need to know:

What is a cloud-based phone system?

A cloud-based phone system allows you to make calls over the internet rather than over a traditional analog phone that uses copper phone lines or optical fibers to make a connection.

Cloud-based phone systems vs traditional phone systems–what’s the difference?

Traditional phone systems work by connecting to the public network. Cloud-based phone systems are not routed through traditional networks but through a hosted internet system.

How does a cloud-based phone system work?

When you dial a phone number, your service provider handles the routing. It converts analog voice signals into data packets that are sent over the internet and connects you with the person you’re calling.

Benefits of a cloud-based phone system

  • Cost savings: Traditional phone service systems require installation and maintenance. A telephone provider technician visits your site and you pay for the installation work, the equipment and any system maintenance that might be needed. Cloud communication systems are software based, so there is no need to have equipment installed on site and any maintenance falls to the service provider.

Because calls are conducted entirely over the internet, you only pay for internet use. You are not paying for call minutes or extra phone service. You can purchase a cloud phone service from a provider and pay on a subscription basis. This is a budget-friendly solution, especially for small businesses.

  • Scalability: As your business grows, it’s much easier to scale your cloud phone system to match your growth. With traditional phone systems, scaling up requires additional hardware.
  • Advanced features: Cloud phone systems offer calling features that help people communicate in a work environment, such as videoconferencing and screen sharing.
  • Fewer maintenance and administrative requirements: Because a cloud-based phone system is managed by the service provider, businesses don’t have to spend money on IT resources to maintain it. The service provider is responsible for keeping the system upgraded, not the customer.
  • Mobility: As long as you have an internet connection, a cloud-based phone service allows workers to access the network from any location and from any device. This means you can work from home or while traveling using a laptop, smartphone or tablet. This has become more important in the past two years, with more and more people working remotely because of the pandemic.
  • Reliability: Because the components of a cloud-based phone system are hosted in multiple locations, most providers have little service downtime and very few disruptions. Also, a cloud-based phone system is less affected by severe weather than traditional landlines, allowing businesses to remain connected no matter what’s happening outside.

Have questions about cloud-based phone systems or which phone system is right for your business? Our tech experts would be happy to help you determine your options. Contact us to schedule a site survey or learn more.

No More IT Surprises & Downtime

Our proactive IT experts are ready to optimize & manage your technology for peak efficiency and peace of mind. Learn how we can help!


Recommended Reads

More Knowledge at Your Fingertips

Want to learn more about how you can leverage specific solutions for your business? Right this way!