As the name suggests, Cloud Telelphony is the communications technology where all communication devices and applications are hosted at the service provider’s premises. Any business interested in using these services do not need to install any software or buy any hardware to get the services started. The service can be an IVR, call center setup, call recording etc. These services can be started on a traditional phone, mobile or a computer system i.e. desktop, laptop or tablet.
PSTN Based Cloud Telephony
To understand better, let's look at a traditional solution and compare it with the cloud telephony architecture
Traditional PBX Solution
Conventional Cloud Telephony Architecture
As shown in the above diagram, in a conventional setup, to start any enterprise telephony solution like a PBX or small call center, we need a dedicated PRI, a PRI server and a conventional call center solution.
Now, look at second image of a "cloud telephony architecture". Here all the devices like PRI Line, application server etc. are hosted or reside at the service provider's premises and all the application/devices are maintained by the service provider.
Cloud Telephony is a flexible solution and provides a complete solution required to track the customer life cycle - Acquisition via marketing campaign(Missed Call, SMS Service) to customer retention (Call Center Solution, Live Chat).