What Is a Cloud Phone System?

You know how important a good phone system can be for your business. But you may not know what a cloud phone system is. Let's go over what it is and how your business can benefit from it.

What Is a Cloud Phone System?

You must first understand how cloud technology works to understand a cloud phone system.

When people say that a service is in the cloud, it does not refer to the fluffy white stuff in the sky. The cloud refers to a network of servers where the service is hosted. These are usually housed in data centers.

The service is then delivered via the Internet. Previously, the software had been hosted locally. This means you could only run software that was directly installed on your computer.

With a cloud phone system, the phone system itself is hosted by a third-party provider in their own secure data center. Companies can then sign up and subscribe, and the service is delivered via the Internet.

This system is now the preferred business communications platform for most businesses.

Cloud Phone Systems vs. Traditional On-Premise Phone Systems

On-premise systems were the preferred phone setup for businesses in the past. Yet, not all companies are able to afford the technology as it requires companies to invest in their own infrastructure, which includes their own servers, to host the phone system within the confines of their office. Thus, it was called, on-premise.

The large capital needed for it means only big corporations can afford it, and small and medium scale businesses had to settle for inferior phone systems that probably needs to be replaced if it still exists today.

That is why the arrival and subsequent rise of cloud phone systems were seen as a great equalizer. Since the service is already safely hosted in the provider's data center, companies who sign up no longer have to invest in expensive infrastructure. They can simply subscribe to the service and use it as needed.

This distribution model made it possible for both enterprises and small businesses to get top-notch phone systems.

What Are the Benefits of Cloud Phone Systems?

The nature of a cloud phone system gives it advantages that an on-premise system can't match. Number one: it's far less expensive than an on-premise system. Some other benefits include:

• Easy set-up – The system is ready-to-go and just needs to be configured according to your company's needs. No need for wiring and cabling. No complicated hardware required.
• Zero maintenance – The service will be maintained by the provider in their own data center.
• Automatic upgrades/updates – Upgrades and updates are installed and implemented in the data center of the phone system provider. It is then rolled out to everyone subscribed to the service.
• Mobility and versatility – The system can be accessed by users anywhere as long as there is an Internet connection. It allows for remote work, which may even qualify you for home office tax deductions.
• Scalability – The system easily scales up and down based on the needs of your business. Easily add or delete business phone numbers, virtual extensions, and admins and users through an online account dashboard.

The benefits listed above illustrate why companies have shifted the communications component of their business to the cloud. Combined with the cost-savings, it just makes good business-sense to any decision maker.

These are also why on-premise systems are on their way out, while cloud phone systems are on the way into more and more businesses.

To view the original article, visit the MileIQ blog.