Cloud Telephony vs. VoIP: Differences, Pros and Cons
Are you struggling with the rising costs and inflexibility of traditional phone systems? Explore differences between Cloud-based telephony software and VoIP. Choose the right communication tool for your business.
Main differences between
Cloud Telephony & VoIP
| Parameter | Cloud Telephony | VoIP |
|---|---|---|
| Hardware | No physical hardware – works on mobile phones, laptops, and tablets. | It may sometimes need a physical hardware installation at the office premises. |
| Scalability | Easily scalable and adjustable (you can add new users within minutes). | Scalability may be limited in some cases – if you use landline phones, you have to install additional hardware. |
| Maintenance | Provider does all the maintenance. | In case of on-site hardware issues, you have to take care of the maintenance. |
| Remote work | Since you are using your own hardware devices, you can work from anywhere. | Remote work may be impossible if you are relying on traditional landlines installed in an office. |
| Data storage | All of your data is safely stored in the cloud. | If you store your data in internal data centers, it may get lost. |
| Costs | Cloud telephony saves you money on installing landline phones and on their maintenance. | VoIP can be used with landlines, which comes with hardware and maintenance costs. It can also be used entirely wirelessly, though, where you only pay for a subscription plan. |
| Best fit | Scaling Startups, SMBs, Enterprises, fully remote businesses, companies with fluctuating call volumes and those in need for advanced features. | Scaling Startups, SMBs, Enterprises, fully remote businesses, companies with fluctuating call volumes and those in need for advanced features. |
| Worst fit | Industries with strict regulations, businesses with weak internet connectivity, companies with incorporated legacy systems. | Companies requiring a high level of security, large-scale call centers, privacy-sensitive services, and businesses with limited budgets for development and maintenance. |
What is Cloud Telephony
& how does it work?
Cloud telephony is a unified communication technology that routes phone calls through the internet replacing phone lines with the cloud. Phone services are hosted on remote servers and accessed via the internet.
This calling solution is flexible, scalable, and cost-effective. You can easily adapt your phone systems to changes because there's no need for physical infrastructure. You'll also get advanced features like Virtual Numbers, Automated Call Routing, and Call Analytics.
What is VoIP
& how does it work?
VoIP is an acronym for a Voice over Internet Protocol. It converts voice signals into digital data packets. Those are then transmitted over the internet, with no need for traditional phone lines. Once the data packets arrive at a recipient's end, they transform back to voice signals.
VoIP software is cost-effective, scalable, and offers a wide range of features. If you are seeking an efficient and affordable communication solution, it's a great choice.
FACTS ABOUT CLOUDTALK
Expand business,
reach new levels
Versatile
70+
Premium features
Reliable
99.99%
Uptime SLA
Available
24/7
Customer support
Global
180+
Countries available
Secure
24/7
Security and data monitoring
Pros and Cons of Cloud Telephony and VoIP
Features
Discover 4 most popular
VoIP features
Call Flow Designer
Design your inbound calling journey to fit the unique needs of your business and customers' expectations.
Read more about Call Flow Designer
Analytics
Get a 360° view of everything happening within your team and unprecedented control over your performance.
Read more about Analytics
Call Transcriptions
Transcribe calls instantly with an AI technology and save your team time, resources and administrative work.
Read more about Call Transcriptions
International numbers
Expand your business to new markets and reach customers all around the world with over 160 international numbers.
Read more about International numbersWhat real users are saying
The inside scoop from actual CloudTalk customers.
From 20-Minute Waits to 3-Minute Service
“With CloudTalk, we dropped our missed calls from 80% to 16% and cut wait times by over 85%, while scaling from 2 to 20+ agents.”
40% Lift in Call Connections
“With CloudTalk, our pre-sales team stopped wasting time on dropped calls and started having more of the right ones.”
20% More Efficient Call Handling
“We replaced personal phones and manual processes with a scalable VoIP solution and saw a 20% jump in team productivity.”
40% Fewer Missed Calls
“We replaced personal phones and manual processes with a scalable VoIP solution and saw a 20% jump in team productivity.”
From 3 Phone Systems to One Source of Truth
“Before CloudTalk, our data was scattered. Now, everything lives in HubSpot — connected, visible, and fully unified.”
66% More Capacity Without Hiring
“CloudTalk made it easy to scale support fast: we cut handle time by 33% and now handle 66% more calls per agent.”
CloudTalk is a data-driven solution for exceptional customer experience and intelligence is a key part of it.
Schedule a demo today and find out for yourself.
Frequently asked questions
Yes, cloud phone systems are based on VoIP (Voice over Internet Protocol) technology, which enables voice communication over the internet. Cloud phone systems utilize VoIP to provide flexible and scalable phone services through the internet, making them a subset of VoIP technology.
Since call quality depends on connectivity, Cloud Telephony is vulnerable to network outages. There's also a slight risk of data breach. Additionally, costs of cloud-based phone systems can accumulate and eventually surpass the upfront investment in a traditional on-premises system.
Cloud Voice generally refers to any voice-related service hosted in the cloud, including VoIP and other telephony solutions. On the other hand, Cloud Phone refers specifically to a phone system hosted in the cloud, utilizing VoIP technology to deliver phone services over the internet.
While a computer is not obligatory for making VoIP calls, a broadband internet connection is essential. Therefore, besides a computer or laptop, you can make calls via mobile phone, tablet, and other devices connected to the internet.
Security breaches occur rarely. As a VoIP subscriber, you can choose to encrypt your calls, ensuring complete security. If data protection is essential for your business, encryption is the ideal choice.
Certainly, you can utilize your existing legacy phone with a Cloud-based System. Yet, doing so means forfeiting numerous advanced features that come with cloud-enabled devices. If transitioning to a cloud-based phone system, it's highly beneficial to opt for devices where you can fully leverage the advantages.
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