What is the Difference Between VoIP and Cloud Telephony

VoIP stands for voice over internet protocol. Business VoIP is a modern-day business phone service that sends audio, video, and data over the internet rather than through a traditional PSTN landline. The goal is to fully eliminate the requirement for hardware resources and physical cable connections for analog communication.

The phrase Cloud Telephony refers to an exchange server located in a data center linked to the internet. The "Phone System" or "PBX" is the software that allows you to make and receive calls as a user and set up your organization's users.

Today, cloud telephony services are gaining immense importance and are a fast-growing market, with many businesses adapting to this solution. Often businesses are confused between the two and think they are similar in functionality. However, there is a vast difference between the two in terms of functionality and features.

The major differentiating factor is the quality of service offered to consumers. The VoIP service is highly dependent on the internet speed for connection. It also requires monitoring for any failure of hardware and software devices. On the other hand, Cloud Telephony offers huge advantages in scalability and maintenance as it does not depend on any hardware devices for functioning. This results in consistent and reliable service.

Comparison between VoIP and Cloud Telephony products:

• Cloud telephony-based solutions offer flexibility and modern-day communication features such as call forwarding, automatically transferring calls to the next free customer representative, and conference calling with multiple callers. Big organizations can also create a synchronized contact list for a professional office communication system.

• Cloud Telephony solutions have a significant advantage over VoIP regarding ownership and operations costs. Since the requirement for hardware is minimized, the burden of maintaining and installing the systems is reduced. There is no need to train and arrange technicians. This helps in reducing human capital costs.

• The features of high scalability are offered in cloud telephony solutions. Businesses can add more users at minimal cost without spending a lot of money on additional hardware.

• With the accessibility of cloud infrastructure through mobile apps, cloud telephony can even reach remote locations. Customer representatives can attend business calls from home and remote locations compared to VoIP, where users have to be present in the same location for connectivity. This helps businesses operate from remote locations and take calls even on the go.

• Higher security is provided in Cloud Telephony solutionsthan in VoIP as the communication happens through cloud servers. Some features like data encryption, network security, and voice and video security are offered compared to VoIP. This ensures that your business communication and customer data remain more secure from unwanted access.

Most useful features of cloud telephony call management

• Smart Call Routing - This feature intelligently routes the query to the specific customer care representative based on his availability and the customer's query type.

• IVR Technology - Interactive voice response technology is used to cater to customer needs before passing the call to the customer service representative. This IVR technology adds a more human-like and interactive touch to your business customer support.

• Internal call transfers within the company premises can also be achieved over cloud telephony. Customer queries can be routed to other departments internally without switching the call.

• Customers do not have to bear the charges of calling your business as it is a toll-free contact number.

• Local contact numbers can help the brand establish an online presence in that local neighborhood. Having a local presence can resonate with the customers leading to more sales in that area.

With the advancements in technology, Cloud telephony is emerging as a wise choice for businesses and replacing VoIP technology due to its unmatched advantages.

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