Cloud Phone System: What It Is, How It Works, and Why to Choose It

Cloud Phone System: What It Is, How It Works, and Why to Choose It

Cloud technology is accelerating today’s businesses by offering more agile and affordable solutions. Business communications, as an essential cornerstone for any company, is embracing this innovation too. More and more service providers have been offering cloud voice solutions for businesses of all sizes. This blog post will walk you through the cloud phone system from what it is and how it works to why and how to choose one.


What Is a Cloud Phone System and How Does It Work?

A cloud phone system (a.k.a. cloud PBX, hosted PBX, and hosted phone system) is a VoIP phone system that is accessible over a cloud-based IP network. It is delivered entirely over the Internet and managed completely off-site, cutting down upfront investments in telecommunications infrastructure. The deployment and setup are quick and easy, freeing companies from IT overheads. Normally, you can purchase the cloud phone service from a service provider and pay on a subscription basis.

The diagram below is a simplified flow of how a cloud phone system works:

Cloud Phone System Diagram

Simply put, with the business phone system hosted in the cloud, you make and receive calls using IP phones, mobile phones, or other devices, and the voice traffic is carried over an Internet connection, which in turn is connected to data centers sitting within the cloud.


What Are the Benefits of a Cloud Phone System?

Savvy businesses are joining the shift to cloud phone systems for lots of reasons.

Cloud Phone System Benefits

Cost Savings 

Every business, especially smaller companies, wants to cut operational costs as much as it can. A cloud phone system is a budget-friendly option as it greatly reduces the upfront investments on equipment and regular occurring maintenance costs. In most cloud phone system installations, the only capital expense is purchasing the IP phones. The cloud phone system usually works on a simple per-user basis so that businesses can scale up the capacity by simply purchasing new licenses. The system is always ready to grow with your business. On the other hand, under such a pricing model, the company has greater predictability of their phone system and better control of their budget.

Scalability

A big advantage of using this type of business phone system is the ability to scale efficiently. As your business grows, your cloud phone system can scale to match your growth. With traditional phone systems, this requires additional hardware if you wish to scale up. But with cloud-based phone services, it is as simple as adding new users whether they are based at a physical office or working remotely. This makes it one of the best phone services for businesses, especially those experiencing rapid growth.

Limited Maintenance & Administrative Requirements

Hosted off-site, a cloud phone system is centrally managed by phone service providers, requiring little technical expertise and IT personnel from customers to set up and configure the system. The responsibility of keeping the system updated also shifts from the customer to the service provider, and businesses have an always current phone system without dedicating budget and resources to maintain it. The administration of a cloud phone system is also simplified as long as you have an Internet connection, which is highly useful for companies with offices in different locations. IT admin can change the user settings through the web interface at any time, anywhere, with a few clicks.

Mobility & Geographical Flexibility

With a cloud phone system, headquarters, branch offices, and teleworkers can all be unified, enjoying the same features and business continuity. For remote workers, the office is wherever they make it as long as the Internet connection is available. Some cloud phone system service providers offer free softphone apps that allow employees to use not only IP phones, but also desktops and smartphones as office extensions to make and receive calls, enabling employees to work from home, on the go, or as a full-time remote worker. Besides, cloud phone systems make it easy to connect geographically dispersed offices under one phone system, and the administrator can manage it from any location.

Bonus: Unified Communications

The cloud phone system is a perfect enabler of unified communications. Unified communications are all about making a wealth of communications channels and options into a single point of access. Cloud unified communications lead to more consistent and convenient communication with colleges and customers by allowing them to use their preferred channels. For example, when you are on a phone call using your web-based or desktop softphone and have to leave for a while, instead of having to hang up the phone, you can forward the call to your mobile phone and keep on the conversation. Some providers also offer values in enhanced collaboration, such as instant messaging, presence, CRM integration, and more.


Handy Features of Cloud Phone Systems

Leading cloud phone service providers offer unlimited advanced features, such as auto attendants, conference, voicemail, call queue, without additional charges to your basic monthly fee. For your reference, below are some features of Yeastar Cloud Phone System that hits the most popular list and you can watch the videos to learn more:

  • Call Forwarding

As a basic feature of a phone system, call forwarding allows an incoming call to a designated destination under different conditions such as “When Busy”, “No Answer”, and “Always”. For instance, you can choose not to answer a call and forward it to a colleague or to voicemail. Watch the video ->

  • AutoCLIP

AutoCLIP is a great help for handling returning calls. Here is the case. A salesman called his client but the call didn’t get picked up. Minutes later, his client called back. Since his information has been stored, his call would be routed to the salesman directly. Watch the video ->

  • SIP Forking

SIP forking refers to the process of “forking” a single call to multiple SIP endpoints. With SIP Forking, multiple SIP endpoints can be registered to one extension number, so that the incoming call can ring many terminals at the same time, and you can take the call from any of the devices. Watch the video ->

  • Ring Group

Ring Group is used to distribute calls effectively among employees in particular departments. When there is an incoming call, all phones within the group ring sequentially or concurrently, depending on the ringing strategy you specify. Watch the video ->

  • Distinctive Ringtone

Distinctive Ringtone distinguishes calls from different inbound routes. Calls coming from different inbound routes will play their own pre-configured ringtones. When a user hears the ringtone, he/she may notice the intention of the incoming call. Watch the video ->

  • Blocklist & Allowlist

Blocklist is used to block incoming and/or outgoing calls, while those in the Allowlist are allowed to call in/called or both regardless of the blocklist settings. Blocklist & Allowlist frees businesses from nuisance calls and builds a more secure phone system. Watch the video ->

  • IVR (Interactive Voice Response)

Interactive Voice Response [IVR] is an automated system that interacts with incoming callers using pre-recorded messages. Either by way of touch-tone keys or voice commands, users will be routed to relevant departments or recipients. IVR ensures a smooth experience for your customers and saves time for your staff. Watch the video ->

  • DID (Direct Inward Dialing)

Direct Inward Dialing provides you with a local phone number from a chosen city or country that can then be forwarded to your company’s PBX system. It enables your business to have a local presence globally without needing a physical location in the selected locality. Watch the video ->

  • Voicemail to Email

Voicemail to email sends your voicemail messages in real-time to your email as an audio file attachment. This allows you to retrieve and listen to your voice messages from a computer, smartphone, or any internet-connected device from any location. Watch the video ->

  • Conference

With ad hoc conferences wherever you and your team are located, you can initiate an instant meeting. This feature is as simple as adding your colleague’s phone numbers to invite them to the meeting. Calls will immediately be made to all the invited participants who only need to pick up the call to join the meeting. Watch the video ->

Blog 10 Must-Try Features of Yeastar Cloud PBX


Is a Cloud Phone System Right for You and When Is a Good time to Switch?

Today, some businesses have embraced cloud phone systems. Some are working on the migration. And others choose to stick with an on-premises PBX approach. The thing is, there is no ultimately better option. Considering the business size, needs, and budget, every business has its own set of requirements, so pick one that suits your business best.

Here is a list of businesses that might find a cloud phone system a perfect fit:

  • Businesses short of IT staff and avoiding maintaining PBX equipment
  • Seasonal businesses with fluctuating communications needs
  • Companies operating at multiple sites
  • Rapidly growing start-ups with unpredictable future capacity needs
  • Businesses having a number of teleworkers and remote employees
  • Companies lacking traditional office space

Switching to a cloud-based phone system is not a difficult proposition. Before making the migration, it’s crucial to evaluate your needs and the key merits of your options:

  • How many employees do you expect to have on your system?
  • Do you anticipate user growth in the short term?
  • How sophisticated are call management needs?
  • What is the startup procedure and cost?
  • How can you use your existing devices with the new cloud phone system?
  • Are there usage-based fees charged in addition to the monthly rate?
  • Do you rely on other cloud-based services and can they integrate with the cloud phone system?

The list goes on. It is not an easy task to compare different offerings and decide on a VoIP provider. For your reference, we have worked out An Ultimate Buyer’s Guide on Small Business Phone System to help you make an informed decision.


Introducing Yeastar Cloud Phone System

Yeastar Cloud Phone System delivers enterprise-grade features along with advanced UC capabilities, bringing a solid, reliable and affordable business communications solution. Watch the video below to have a closer look.

Blog Why to Choose Yeastar Over Other Cloud Phone Systems

Case Study Red Bull Ireland Migrates Their Phone System to Cloud

Yeastar Cloud Pbx Free Trial

We offer a free trial for you to experience the cloud phone system. All features are included and you can download the free Linkus UC Clients on your mobile phone and desktop. No credit card is required. Once signing up, you can start to use it right away.

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User Login

Instantaneously receive user login credentials via email once the extension has been deployed by the adminstrator.

Log in conveniently via any web browser for access to the user portal.

Integrations

Integrate various CRM software for better customer service and satisfaction.

Enable transcription of audio messages into text with integration of third-party transcription service.

Enable API for integration with various third-party integrations for advanced performance such as call center and hotel reception services.

System

Provision email SMTP and template settings for event notifications to be sent out.

Manage storage allocation and duration of various types of data being stored on the PBX.

Determine the types of event notifications to be sent out, and the parties receiving them.

IVR

Add various audio voice prompts to be played according to different call scenarios.

Add voice prompts on multiple levels for more effecient and precise inbound call routing.

Voicemail

Customize default voicemail settings for each user extension.

Add various voicemail messages for allocation to different call scenarios and users.

Provision specific rules to how voicemail messages are played over the PBX system for better caller experience.

Reports and CDR

All call log activities are stored, with the option of having audio conversations recorded by default or for specific extensions.

Use intuitive visual call reports, to check various call statistics over extensions, trunks, queues, ring groups, and more.

Call reports can be viewed and downloaded directly from the PBX, or scheduled to be sent via email to respective parties.

Security

Restrict a general group or specific IP addresses to prevent unauthorized access to your PBX.

Limit the number of otbound calls users are allowed to make within a time period to protect against toll fraud.

Restrict certain country codes for outbound calls either company-wide or on certain extensions.

User Login

Determine extension ranges for different functions.

Define use of different voice prompts depending on call scenarios or intended function.

Provision basic and advanced SIP settings to be used on the PBX.

Recordings

Record all calls made on specified trunks, including inbound and outbound calls.

Recordings

Record all calls made on specified extensions, conferences, or call queues.

Paging and Intercom

Create different types of paging and intercom broadcast groups for selected extensions.

Set a time schedule to automatically start your broadcast.

Maintenance

Check for and download firmware upgrades to ensure that your PBX is always up-to-date.

Perform back-ups to prevent data and settings from getting lost.

Perform troubleshooting on your own to debug.

Conference

Pre-set conference settings and dial-in passwords for security, and allow internal users to send conference invites to external parties.

Speed Dial

Create multiple speed dial numbers to respective external numbers frequently used for outgoing calls.

Speed dial is activated when the set prefix (default or customized) is dialed.

Ring Group

Create multiple ring groups and determine custom ring strategies and failover settings for each.

Call Queue

Create different call queues with specific ring strategies and failover settings.

Static agents permanently answer calls in queue, while dynamic agents can log in and out. Allocate different extensions to each group.

Determine what actions are to be allowed for Mangers or Agents to manage on the Queue Panel.

Call Control

Have calls received on specific SIP trunks routed to designated extensions or destinations within the PBX.

Set-up dial patterns so that outbound calls are routed to their intended destinations.

Determine how calls are routed and received at different times of a day.

Contacts

Store, retrieve, and share company contact details easily on your PBX.

Organize company contacts into dedicated phonebooks and determine accessibility rights to extension groups for each.

Bulk import a list of contacts instead of having to key details in individually.

Role and Client Permission

Pre-defined user roles within the PBX are conveniently available for allocation, or create your own set of permissions.

Restrict users from viewing specific extensions, departments, or extension groups with Extension Visibility.

Allow or resrict specific users from managing or viewing certain company contacts

Auto Provision

Pre-defined setting parameters specific to respective IP phone models are conveniently available for easy set-up.

IP Phones can be quickly provisioned to your Yeastar PBX with just the pre-defined template and device MAC address.

Trunks

Register multiple SIP trunks on a single PBX as needed.

Different types of trunks can be created, Caller ID can be customized.

Extensions

View, deploy, add, and remove user extensions within your PBX system.

Configure default call and user settings for individual extensions.

Customize allocation of user extensions to specific ring groups.

Portal Login Page

Receive your administrator log-in credentials and set-up guide via email.

Log-in on any web-browser to get started with PBX set-up.

Installation Wizard will guide you through basic configurations.

User Login

Access all company contacts made available to you by the administrator.

Create your own personal contacts list for easy reference and dialing.

Bulk import contact details for convenient data entry.

User Login

Access and manage user settings for softphone application and voicemail.

Manage call routing and presence status for your individual extension.

Retrieve or download your personal call logs and recordings.

User Login

Receive your log-in credentials and set-up guide via email, sent by your admin.

Log-in on any web-browser to get started with PBX set-up.

Configure contacts and personal settings from the web portal.

Auto Provision

Add, remove, or modify IP phone settings from your web interface.

Upgrade IP phone firmware conveniently from your PBX.

Upload various default setting parameters specific to respective IP phone models for greater convenience during set-up.

Contacts

Store, retrieve, and share company contact details easily on your PBX.

Have detailed contact information for your vendors and clients conveniently stored .

Bulk add a list of contacts instead of having to key details in individually.

PBX Monitor

Monitor the status extensions, whether they aren idle, in use, or unavailable.

Know whether your SIP Trunk running properly, or experiencing problems.

Monitor the number of call conferences currently running on your PBX, and their individual durations.

Maintenance

Check for and download firmware upgrades to ensure that your PBX is always up-to-date.

Perform back-ups to prevent data and settings from getting lost.

Perform troubleshooting on your own to debug.

Call Detailed Report

All call log activities are stored, with the option of having audio conversations recorded by default or for specific extensions.

Filter by date, time, or extension number to retrieve specific call logs or recordings

Playback call recordings directly from the PBX or download to store externally.

Event Center

Determine what events and logs are to be recorded and/or have notifications sent.

Specify particular notifications to be sent to respective authorized personnel.

User Permission

Set up vaious groups of users for allocation to certain sets of access rules.

Determine what features a certain group of extensions can or cannot access.

Determine if users can access, play-back, or download call logs and recordings from the pbx.

Security

Restrict a general group or specific IP addresses to prevent unauthorized access to your PBX.

Determine specific the range of SIP ports for connection between your PBX and endpoints.

Restrict country codes for outbound calls either company-wide or on certain extensions.

Voice Prompt

Upload and designate customised audio recordings at multiple levels of a call journey.

Upload recorded music to fill the silence that would be heard by callers on hold.

Upload customised voice prompts to create a professional call experience.

General

Customize general call preferences either company-wide or for individual extensions.

Set-up feature dial codes for convenient user navigation to specific call features.

Determine how voicemails are retrieved, and also upload custom voicemail recordings.

Call Features

Add multiple automated responses to be played at different phases of a call journey.

Designate specific extensions to ring concurrently based on an external caller's dial pattern.

Customize messages and waiting times to keep external callers engaged when put on hold.

Call Control

Have calls received on specific SIP trunks routed to designated extensions within the PBX.

Set-up dial patterns so that outbound calls are routed to their intended destinations.

Determine how calls are routed and received at different times of a day.

Trunks

Register multiple SIP trunks on a single PBX as needed.

Provision SIP trunk settings and dedicate them to particular extensions.

Bulk add DDIs on each SIP trunk, for allocation to an individual or groups of extensions.

Extensions

View, deploy, add, and remove user extensions within your PBX system.

Allocate and deploy specific extension numbers to respective users via email.

Set-up default ring and presence status settings for individual users.

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