What is a cloud telephony solution?

As the name suggests, Cloud Telephony 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 does 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, virtual number or call forwarding. These services can be started on a traditional phone, mobile or a computer system i.e. desktop, laptop or tablet.

It works via two networks

  • PSTN – Many countries do not allow the mixing of IP and PSTN calls like India and Middle East countries. These countries use PSTN based cloud Telephony solution
  • IP – The cloud telephony services are delivered via the internet. Some countries such as United States have internet linked calling or are VoIP enabled, for providing Cloud Telephony services.

    To understand better, let’s look at a traditional solution and compare it with the cloud telephony architecture

    Traditional PBX Solution

    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.

    Conventional Cloud Telephony Architecture

    Now, look at the above 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 applications/devices are maintained by the service provider.

    What are the benefits of Cloud Telephony solutions?

    Small Business

    • It’s easy to setup. – A simple monthly subscription lets small businesses access call center level features to ensure better efficiency and customer experience.
    • Zero Capex
    • While a legacy contact center requires expensive infrastructure, with cloud telephony, the staff just logs in from an internet browser to answer calls. The only extra hardware needed is a good set of headphones. Or they can receive calls on their landline/mobile.
    • Call Recordings and analytics – Small business owners and managers get access to advanced analytics to improve their workforce planning. And can monitor their agents in real-time from anywhere.
    • Easy to Scale: Start with 1-2 seats and increase or decrease users based on business needs.
    • IVR – Greet customers and divert to the right staff or even offer self-service using modern IVR tools. (Read More..)


    • CRM Cloud telephony easily integrates with all web-based CRM and ticketing solutions. (Read More..)
    • Reporting & Analytics: Full feature solution providers give detailed call analytics and reports, which help in business decisions. (Read – Key Call Center Metrics)
    • Distributed Call Center: Businesses can manage distributed call centers across multiple places from a centralized location.
    • Easy to upgrade: A legacy Call Center Solution is inflexible and complex to upgrade, but Cloud solution up-gradation is taken care of by the service provider.

    Cloud Telephony is a flexible solution and provides a complete solution required to track the customer life cycle from Acquisition via marketing campaign (Missed CallSMS Service) to customer retention (Call Center SolutionLive Chat).

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