04 Jan 2024

Businesses are continually seeking efficient and flexible solutions to streamline their operations. One such innovation that has gained significant attention is the Cloud-Based Phone System. In this blog, we look into the transformative technology behind the cloud based phone number. Discover what sets these digital phone numbers and virtual telephone numbers, how they operate, and why they are becoming an inevitable success tool for businesses of all sizes.

This blog explores the fundamentals of these cloud phone systems for enterprise business and digs into the reasons why businesses are increasingly opting for them.

What is a cloud based phone system?

A cloud-based phone system, commonly referred to as Voice over Internet Protocol (VoIP), operates in a distinct manner. In essence, it is a system that utilises the internet to transmit voice and other data, such as sms, files, videos, time, date, notes, etc. This data is hosted in the cloud, allowing users to share and access it through various devices. That's why it is often referred as cloud calling system. Unlike traditional landline systems, this approach eliminates the need for physical phone lines and infrastructure.

These cloud based VoIP or VoIP cloud phone systems are compatible with a range of devices, including traditional phones with adapters, smartphone apps, computer software, or VoIP-enabled phones. Instead of managing software through an on-site server, like a private branch exchange (PBX), all information and data are stored in the cloud. This eliminates the need for expensive maintenance and updates, as everything can be conveniently updated in the cloud.

What is cloud calling?

Cloud calling, also known as cloud hosted phone system or Cloud PBX system, refers to a communication technology that allows voice calls, messaging, and other telecommunication services to be delivered over the internet using cloud infrastructure. In traditional telephone systems, calls are transmitted through dedicated phone lines and physical hardware. In contrast, cloud calling relies on internet protocols and leverages cloud computing resources to handle communication services.

How does a cloud-based phone system work?

In contrast to conventional phone systems that transmit your voice through networks and cables, cloud-based systems break down your voice into small digital packets and transfer them to recipients using internet protocol.

Through a process called SIP Trunking and collaboration with carriers such as Twilio, Voxbone, Plivo, etc., cloud based telephone system establish connections with the traditional telephone network. This enables calls made and received on these systems to extend beyond devices solely connected to the internet.

Applications for cloud phone systems enable users to initiate voice calls over the internet. Familiar examples include popular apps like Skype, Google Voice, Apple FaceTime or Micorosoft Teams. While functioning similarly to these apps, cloud based telephone services are accessible through "real" phone numbers and can connect to both the traditional telephone grid and other cloud-based phone systems. This technology facilitates a more adaptable work environment compared to traditional business appliances.

Key features of cloud hosted phone systems

Following are some of the main cloud phone system features:

Internet-based communication

Cloud telephony systems utilises Voice over Internet Protocol (VoIP) technology to transmit voice and multimedia data over the internet. This eliminates the need for traditional telephone lines.


Cloud telephone systems can scale more easily to accommodate growing communication needs. Users can typically add or remove lines, features, and services without the need for extensive hardware upgrades.


Users can make and receive calls from various devices, including smartphones, computers, and IP phones. This flexibility is particularly beneficial for remote work scenarios, as users can access the communication system from virtually anywhere with an internet connection.


Cloud hosted PBX often eliminates the need for significant upfront investments in hardware and infrastructure. Additionally, maintenance and updates are typically managed by the service provider, reducing the burden on businesses.


Cloud phone solutions can often integrate with other cloud-based services and business applications, enhancing overall productivity such as Pipedrive, HubSpot, Bitrix24, Microsoft Teams and Zoho etc. This integration may include features such as voicemail to email, call recording, video conferencing, and integration with customer relationship management (CRM) systems. Wavetel Business not only provides advanced business phone system features but also intergrations with the powerful CRMs and business tools to empower your all the business activities and your teams.

Reliability and redundancy

Cloud calling services are often hosted in redundant and geographically distributed data centers, improving reliability and ensuring continued service even in the event of hardware failures or network issues.

Why use a cloud based phone system?

Following benefits of cloud based phone system is quite sufficient to understand that why modern business need to swift this innovative technology as early as possible:

Cost efficiency

Cloud-based phone systems typically involve lower upfront costs and eliminate the need for extensive hardware, reducing installation and maintenance expenses.


Easily scale your communication infrastructure as your business grows, adding or removing lines and features without significant hardware upgrades.


Access communication services from various devices, fostering a more adaptable and mobile work environment.

Feature accessibility

Cloud phone systems often offer a range of features such as voicemail to email, call recording, and integration with other cloud-based services, enhancing overall productivity.


Hosted in redundant and distributed data centres, cloud calling services provide improved reliability, ensuring continuous operation even in the face of hardware failures or network issues.


Seamless integration with other business applications and services, enhancing collaboration and workflow efficiency.

Remote accessibility

Facilitates remote work by allowing users to make and receive calls from virtually anywhere with an internet connection.

Automatic updates

Cloud-based systems typically receive updates automatically, reducing the burden on businesses for maintenance and ensuring access to the latest features and security patches.

Global connectivity

Cloud-based phone systems can connect to the traditional telephone grid and operate globally, providing an extensive reach for businesses with international operations.

SIP trunking

Utilising SIP Trunking, cloud phone systems connect with carriers and traditional telephone networks, expanding their accessibility beyond internet-connected devices.

Determining the compatibility of a cloud-based phone system for businesses

Consider these factors to determine if a cloud-based phone system is a business cloud phone systems:

  • Data management: Evaluate how your business uses data and the security practices of any chosen provider. Cloud service providers store and manage data externally.
  • Equipment: Check compatibility if you have existing traditional phone system equipment. Cloud phones operate on desktop computers or mobile devices, minimising additional hardware.
  • Reliability: Cloud office phone systems require a stable internet connection. Assess whether your internet is reliable before opting for a cloud phone system.
  • Costs: Cloud phone service for business eliminates installation and maintenance costs. Carefully assess the need for advanced features, as they come with additional expenses. Some providers offer scaled-down versions for basic phone services.

Can a cloud-based business phone system truly benefit businesses?

Whether you are a small business, startup, or embracing remote work, adopting a cloud phone service for business provides cost-efficient, scalable, and flexible communication solutions tailored to the needs of modern businesses.

Small business

Cloud based business phone systems can also be regarded as cloud based small business phone system because they offer a cost-effective communication solution. With lower upfront costs and the ability to scale based on evolving needs, these cloud based phone systems for small business provide the essential features required for effective communication without straining limited budgets.


Startups benefit from the flexibility and scalability of business cloud phone systems. With the ability to add or remove phone lines easily, startups can adapt their communication infrastructure to match the rapid growth and changing demands typical of early-stage ventures.

Remote work

Cloud-based phone system is an inevitable tool for remote work scenarios. Enabling employees to make and receive calls from any internet-connected device, these systems enhance the mobility and flexibility required for a distributed workforce.

Cloud-based phone system: Pros and cons

Before making a switch to a different phone system, it's essential to carefully examine the cloud-based phone system pros and cons before investing in cloud-based technology for your communication requirements:

Pros of cloud-based phone systems

Ease of setup and scalability

Quick and straightforward setup, with the flexibility to easily scale the system according to your business needs.

Intuitive user interface

Intuitive dashboard design facilitates user understanding, enabling efficient operation without extensive training.

Seamless integration with tools

Keeps you connected to various tools, fostering a cohesive work environment and improving overall productivity.

Location independence

Provides the freedom to stay connected from anywhere, eliminating the need to be tethered to a desk for communication.

Proven call quality

Demonstrated reliability in call quality, ensuring clear and consistent communication for users.

Instant collaboration for teams

Enables teams to collaborate instantly on accounts and projects, promoting efficient teamwork.


Tailored for mobile use, accommodating the modern workforce's need for flexibility and on-the-go communication.

Cost-efficient updates and maintenance

Updates and maintenance occur seamlessly in the cloud, resulting in cost savings compared to traditional systems requiring equipment replacements.

Savings on international calling

Offers potential cost savings on international calling, reducing expenses for businesses with global communication needs.

Modern and aesthetic design

Features a beautiful and modern design, enhancing the overall user experience and visual appeal of the communication platform.

Cons of cloud-based phone systems

Dependency on internet reliability

Relies on a stable internet connection, subject to the reliability of your internet service provider and adherence to connectivity best practices by your team.

Get Wavetel Business cloud based small business phone system

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Experience the benefits of unlimited calls on UK mobile and landlines starting at just £4.99 with their affordable pricing plans. Elevate your business communication with Wavetel's feature-rich and budget-friendly solution.


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