Cloud-Based Phone Systems: Efficiency Drives Revenue

Every business is interested in improving its bottom line, whether it be by increased revenues or through cost-cutting measures. With the rise of automation and technology, there are increased solutions for every business need.

As far as business telecommunications go, cloud-based phone systems not only have cost-saving benefits, but revenue enhancing benefits as well. Efficiency and streamlining drive productivity which drives increased revenue.

Cloud-based phone systems are phone systems that deliver their features, functionality, and your telephone lines over the Internet, and these systems operate utilizing VoIP (Voice over Internet Protocol). Rather than maintaining phone system software on a server in your office on a Private Branch Exchange (or PBX), you can purchase your VoIP cloud phone system service from a provider and pay hosting fees on a subscription basis.

What is a hosted phone system?

A hosted phone system is an internet-based phone system where the “command center” of the system (the servers and applications) is not based on your company’s premises, but rather at a data center (cloud).  It means your phone services are hosted off-site. The cloud really is just a physical server that is virtualized and consolidated to host several cloud server.

Cloud phone services help eliminate the hassle and expense of operating your own telephone system hardware and software - that responsibility is now passed off to the provider of the cloud based phone system who manages all the computers and networks which run on the software. You still get to use the great features of your telephony software, but someone else maintains the infrastructure.

Many cloud PBX providers have hosted services that house all the phone system hardware offsite. Generally, all you need with a hosted cloud service is an internet connection and working IP phones. Simple, easy and efficient.

How it Works

How does cloud PBX work? Two words: The Internet.

All cloud technologies are dependent on the internet. A cloud PBX works by connecting to your IP (Internet Protocol ) phone for its internet connection. There must be a VoIP  phones in place in your office in order to use a cloud PBX. Many VoIP service providers will include their PBX options at little or no extra charge.

A Cloud PBX can typically be accessed with a personalized account (which helps with tracking and accountability of employee use) from a browser such as Internet Explorer or Chrome from any computer or device that can run the Cloud PBX software. This  means that you can access your hosted phone system from any Internet-enabled location.

Calls can easily be made from your desk phone, PC, or mobile app--the only difference is now they are connected to the Internet. For a mobile or distributed workforce, the interconnectivity gives you greater mobility and freedom when using your office phone and PBX. So, if you frequently need to be out of the office, but you don’t want to miss your calls, you can stay connected through your cloud PBX.

Because your VoIP phone service is based offsite, your cloud PBX service provider is in charge of storing and managing all of the data that you want your cloud PBX to hold. This means that your calls are connected to their recipients over the Internet by the service provider. Your service provider also backs up all of the relevant information that you want it to store in case of a loss of data if a computer were to crash. This redundancy helps protect your data from loss and the distributed data saved across the cloud is what many companies rely on for disaster recovery plans. Because there is no data stored on-premise, in the event of disaster or catastrophic event, data is safely secured in the cloud.

Cloud phone systems change a company's business communications by eliminating the need for PBX hardware from your office and putting it in the cloud.

Multiple benefits in the cloud

There are many benefits of a cloud-based phone system. Because they operate in the cloud, they easily integrate with CRM and other business productivity tools with access to email, instant messaging, and video conferencing to provide an interconnected business solution. Other benefits are:


  • Whether the company is a startup, small-to-midsize, or even a large corporation, cloud-based phone systems can accommodate any sized company.

  • An excellent option for a distributed workforce, whether its local, national or global.

  • Your technology stays current, most cloud telephone system providers offer periodic free and automatic upgrades to their subscribers.

Fast and Easy Setup Process

  • Cloud deployment can be done in a matter of days - or even hours, depending on the types of integrations needed.

  • There is no cabling to be installed or hardware to deliver, so there are no external delays.

Expense Reduction

  • No hefty installation fees or expensive server hardware to purchase, along with lower system maintenance fees because the system is hosted off-site

  • Predictable monthly billing with subscription service

  • Often lower cost vs. paying a traditional phone company for your phone lines

Business Mobility

  • Mobile applications connect mobile employees to the phone system from wherever they are located. All your relevant data is stored in the cloud, accessible 24/7.

  • The mobile applications have the same or at least similar features that desktop phones have, so employees are not limited in their functionality.

Data Security

  • Data is routed through advanced and secure networks.

  • Your communication data is stored in various locations so your data is protected against corruptions, loss, and disaster. And, disaster recovery is quicker.

The Features Available in Cloud Solutions

  • Small businesses can access the same features available for enterprise-class solutions without enterprise level costs.

  • Access to features like advanced call logs, conferencing, call recording, mobility and much more under cloud-based VoIP system.

As cloud-based business solutions continue to evolve, one thing is certain--the interconnectedness of them help drive efficient business processes. Because a cloud-based phone system can be connected into a CRM, sales and customer success functions are greatly improved, increasing the speed and responsiveness of your team which leads to better customer experience and becomes a driving force of increased revenues.

Richard Hill