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What Is Cloud Telephony & How Does it Work?

What Is Cloud Telephony & How Does it Work?

Cloud telephony is a type of modern telephone system that uses the internet to provide communication services such as voice and video calls, text messaging, and other functions. It can be used to improve customer service, enhance customer experience, and reduce costs associated with traditional phone systems. With cloud telephony, businesses no longer need to purchase costly hardware and software to manage their phone systems; instead, they can access these features from any device connected to the internet. In this article, we will explore what cloud telephony is and how it works.

Definition Cloud Telephony

Cloud telephony is a type of communication system that uses the internet rather than the traditional public switched telephone network (PSTN) to provide services. This includes features like voice and video calls, text messaging, conference calls, and other functions that are normally handled by a standard phone system. Cloud telephony is often hosted as a software as a service (SaaS) platform, meaning users don’t need to purchase any hardware or software to access these features. Additionally, users can access these services from any internet-enabled device.

How Does Cloud Telephony Work?

Cloud telephony works by routing calls and messages through the internet instead of using dedicated physical phone lines. It is powered by Voice over Internet Protocol (VoIP), which is a technology that allows for the transmission of voice data over the internet. When a customer makes a call, their data is transmitted to the cloud where it is then routed to the intended recipient.

The cloud telephony system includes software and hardware components that are hosted in the cloud. This includes routing protocols, codecs, and other features that are needed for efficient communication. The service provider will also provide a user interface that allows customers to configure their systems and create custom calling plans.

Cloud telephony can also be used to provide supplemental services such as voicemail, IVR (Interactive Voice Response), call transfers, conference calling, and more. These services are often managed through a unified dashboard or control panel which makes them easy to use and manage.

Benefits of Cloud Telephony

One of the main advantages of cloud telephony is cost savings. Businesses no longer have to invest in expensive hardware and software to manage their phone systems; instead they simply pay for the services they use on an as-needed basis. In addition, cloud telephony offers enhanced scalability – businesses can rapidly add new features or capacity when needed without having to make costly upgrades or changes to their existing systems . Finally, cloud telephony is highly accessible – users can access their phone systems from any device with an internet connection at any time.

Examples of Cloud Telephony Services

Some popular examples of cloud telephony services include RingCentral, Twilio, 8×8, Vonage Business Solutions, Microsoft 365 Phone System, and Skype for Business. All of these offer a variety of features such as voice and video calling, text messaging, voicemail, automated attendants, call forwarding and recording, and more. Depending on which service you choose you may also get access to additional features like analytics tools or integrations with third-party applications.


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