What is the difference between VoIP and cloud telephony?

VoIP enables voice calls over the internet, and cloud telephony includes more phone services hosted online. VoIP is a specific technology for internet-based calls, while cloud telephony includes additional features.

Does a cloud phone service work on landlines?

A cloud phone service does not work directly on landlines . Instead, it uses the internet to convert analog voice signals into digital data and transmit them over the internet. This means that a cloud phone system can be used through various devices such as VoIP phones, mobile phones, or computers, but it does not rely on traditional landline infrastructure

Does a cloud phone service work on mobile phones?

Yes, a cloud phone service works on mobile phones. Cloud-based telephony systems are designed to be accessible over the Internet, meaning that users can make and receive calls using various devices, including mobile phones and traditional desk phones and computers.

11 Best Cloud-Based Telephony Solutions of 2025

82% of businesses reduced costs after moving to the cloud. However, to achieve these savings, you need to carefully choose a cloud-based telephony solution that meets your business needs.

In this article, we’ll help you to make this decision easily by exploring the top providers, their features, pricing, and what makes them stand out.

Key takeaways:

By understanding the general landscape of cloud-based telephony solutions, you can make informed decisions based on your business needs.
Selecting the ideal provider involves considering factors like integration capabilities, cost, and security.
Prioritizing providers that offer scalable solutions and flexible pricing structures ensures long-term viability and minimizes the need for frequent transitions.

Why Trust CloudTalk?

For nearly 10 years, we’ve been helping more than 30,000 professionals with our solutions. Along the way, we’ve worked closely with experts across customer support, sales, and operations—listening to their challenges and following market trends.

To support better software decisions, we’ve reviewed over 200 software tools across industries. In the process, we’ve analyzed 5,500+ verified customer reviews from platforms like G2, Gartner, Capterra, and TrustRadius, plus real discussions on Reddit and Quora.

In the last year alone, we published over 1,000 articles—each one written by humans for humans, with care and a deep understanding of our customers’ needs. The reviews are based on trustworthy data, with one clear goal: to provide reliable insights and answers for you.

Learn how we keep our content integrity and our software review methodology.

What Is a Cloud-Based Telephony Solution?

A cloud-based telephony solution is a phone system that runs over the internet instead of using traditional phone lines or hardware. That means your team can make and receive calls from anywhere—on a laptop, desktop, or mobile device—as long as there’s an internet connection.

Unlike legacy PBX systems that require bulky on-site equipment, cloud telephony is hosted by a provider and managed online, which reduces IT headaches and upfront costs.

And since everything is cloud-based, updates, security, and backups are handled automatically—so you can focus on your customers, not your phone systemm.

How Does Cloud-Based Telephony Work?

The system uses VoIP (Voice over Internet Protocol) to transmit the call, turning your voice into digital data and sending it over a secure internet connection. When you make a call or someone calls your business number, it’s routed through a cloud server—hosted and maintained by your provider.

Here’s how the process works:

Call initiation: A customer dials your business number from any phone.
VoIP transmission: The caller’s voice is converted into data packets using Voice over Internet Protocol (VoIP) and sent over a secure internet connection.
Call routing: The cloud system processes call rules, connects the call via PSTN or VoIP networks, and routes it to the destination number.
Reassembly: The data packets are converted back into an analog voice signal so they can hear the call.

Top Benefits of Cloud-Based Telephony for Businesses

Cloud-based telephony helps your team cut costs, stay flexible, and deliver better service from anywhere. Here’s how it powers growth:

Cut communication costs without compromise: Ditch the hardware and upfront installation fees. Cloud systems run online, so you avoid the cost of servers, maintenance, and IT support.
Scale your system as you grow: Add or remove users in just a few clicks. Whether you’re onboarding new hires or opening a new office, cloud telephony scales with you—no rewiring or equipment upgrades needed.
Expand globally without extra overhead: Set up local or international phone numbers instantly. Reach new markets and serve customers worldwide, without opening physical offices.
Access advanced features out of the box: Use smart tools like call recording, analytics, voicemail-to-email, and auto-attendants from day one. Plus, integrate your CRM to keep everything in one place.
Deliver faster, smarter customer service: Route calls to the right agent automatically. Add custom greetings or virtual receptionists. Help customers get answers quickly—without bouncing between departments.
Unify your team’s communication: Bring calling, messaging, and video into one cloud-based platform. Streamline collaboration across departments and cut the clutter of disconnected tools.

Key Features You Should Look for in a Cloud Phone System

Make sure your cloud phone system includes these core features to support productivity, customer service, and remote work:

Call Recording: Call Recording helps you review conversations for training, monitor service quality, and stay compliant with industry regulations.
Call analytics: Analytics show patterns in call volume, duration, wait times, and more. These insights help you fine-tune staffing, improve workflows, and measure success.
IVR: An auto-attendant or IVR system greets callers and sends them to the right place fast. No reception desk required, just a smoother experience for everyone.
Call routing: A modern Call Routing directs calls based on time of day, caller location, or team availability. This keeps response times low and customer satisfaction high.
Voicemail: If your team is unavailable, Voicemail ensures customers can still leave a message. You can access voicemails from anywhere—some systems even send them to your email.
Mobile integration: A good cloud phone system lets employees make and receive calls on their mobile devices, so they can work from home, the office, or on the move without missing a beat.

Cloud Telephony Costs: What You Need to Know

Most cloud phone systems cost between $25 and $35 per user/month, but final pricing can vary based on your team size, feature needs, and call volume.

Several factors influence the total cost:

User count: More users mean higher overall costs, but many providers offer discounts at scale.
Feature set: Advanced tools like AI analytics, custom call flows, and integrations can raise the price tier.
Call volume: High-volume teams may need plans with greater capacity or unlimited minutes.
Support level: Premium support or dedicated account management may add to the base price.
Billing cycle: Annual plans typically cost less per month than monthly billing.

Top 11 Cloud-Based Telephony Solution Providers

The VoIP market is projected to grow from $134.86 billion in 2023 to $151.21 billion in 2024 at a compound annual growth rate (CAGR) of 12.1%.

As a result, it’s evident that more solutions are emerging in the market each day, making it challenging to choose the right one.

Therefore, let’s explore the top 11 cloud-based telephony solution providers, each with unique advantages. We’ll examine their key features, pros, cons, and pricing to help you find the best fit for your business.

#1 Cloudtalk

It has been awarded the G2 Best Software Award 2024 in the “Top 50 Best Customer Service Software” category. Its integrated analytics empower managers, making it a go-to for customer service and sales teams.

Key Features

International Numbers: Acquire international numbers (with geographic or non-geographic codes) from more than 160 countries. Local phone numbers allow customers from abroad to call you at standard local rates or free of charge.
Call Flow Designer: Customizing your call flow allows you to create a system that perfectly fits your needs. With over 20 routing options, you can design a tailored inbound calling process for your business.
Smart Dialer: It lets you scan websites, CRMs, and HelpDesks for phone numbers and add them to your queue with a click.
Number porting: It allows you to keep your existing numbers and preserve your identity by porting numbers from 50 countries, including local, national, mobile, and toll-free options.

Pros

Ease of setup and use.
24/7 customer support.
Great call quality.
Integration with popular CRMs such as Pipedrive, HubSpot, and Salesforce.

Cons

Inability to resize window during a call.
Limited video features, as it primarily focuses on voice calling.

Best For

Mid-sized companies looking to grow

Pricing

Starts at $25/user per month.

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#2 RingCentral

When you think about VoIP telephony solutions, RingCentral is among the first ones that come to mind. It’s no wonder the company has been on the market for over 20 years and has built quite a reputation.

RingCentral stands out as a VoIP provider due to its cost-effectiveness, ease of setup, and robust feature set.