Cloud Telephony vs VoIP: Key Differences Explained

Are you searching for a means of business communication? Everyone should relate cloud telephony with VoIP, so it is crucial to identify these two terms. They are related but not mutual; one cookie cannot be the other despite them both being cookies.

Among them, VoIP and cloud-based phone systems are much more noteworthy to feature out.

VoIP, which stands for Voice over Internet Protocol, is a way of making phone calls over the Internet instead of the phone line. On the other hand, a cloud phone is a system that also involves making calls through VoIP technology but is carried out within cloud-based programs, which makes it more flexible for businesses.

This will be a detailed guide that discusses the distinct features of Cloud Telephony and VoIP in detail. It will present the readers with related differences that will help businesses when considering these technology solutions for their operations.

Key Differences: Cloud Telephony vs VoIP

What is cloud Telephony?

Cloud telephony can also be referred to as cloud-based telephony or cloud-based phone system, and it is a new-fangled category/technology of telecommunications that utilizes cloud computing for the efficient processing of voices via the Internet. This communication approach does not require businesses to be physically connected with traditional phone lines and pieces of equipment, thus saving on cost and delivering effectiveness of business scalability and flexibility.

A cloud phone system operates through a VoIP service provider, eliminating the need for complex physical PBX hardware on-site to manage business calls.

How does Cloud Telephony Work?

A cloud phone system usually uses the Internet to transmit data packages of voice calls, also known as Voice over Internet Protocol (VoIP). 

If the call is made from a VoIP-enabled appliance, the analog voice signals are first transformed to digital form by packetizing. They include those containing the calls’ voice data and vital signals. The digital data packets then pass through the Internet, mainly through several routers and switches to the intended end of the recipient. This journey also encompasses effectively delivering and forwarding the data packets in the complicated Internet network to get the voice data to the appropriate receivers.

The received digital data packets go through a process in which the packets are converted from digital format to analog signals at the receiver. This conversion is done by a gadget called Analog Telephone Adapter (ATA) or Voice over Internet Protocol (VoIP) adapter. These adapters are very important intermediary devices that help transfer so-called voice over Internet protocol or VoIP that is, in effect, transferring of voice communication through the Internet connections and this is done through the conversion of digital signals into telephone line compatible analog signals. 

Once a call is initiated, the signals from the caller’s phone are converted into audible waves on the recipient’s phone, allowing them to hear the caller’s voice. This seamless conversion of voice data enables real-time, two-way communication, and the conversation continues until it is ended by one of the parties involved.

What is Voice Over Internet Protocol(VoIP)?

VoIP is a technology that enables voice communication over the Internet. It converts audio signals into digital data packets for transmission. VoIP offers cost savings, flexibility, and additional features compared to traditional phone services.

VoIP enables phone calls over the internet instead of traditional phone lines, improving call center efficiency globally. Popular VoIP software like Skype also allows for seamless video calling.

How does VoIP work?

Surprisingly, VoIP technology is simple and works similarly (if not better) than traditional landlines or mobile phones. Here’s how each VoIP conversation works.

• The VoIP phone receives digital data from another device and splits it into packets of information.
• Using broadband internet, packets are converted and sent to a router.
• Once the router gets the packets, it determines the most efficient delivery method.
• The router gets the packets and determines the most efficient way to get them to their destination.
• The phone that receives VoIP calls uses the addresses for each packet to arrange them in their proper order. 
• Conversely, the VoIP user gets the data as recognizable speech.

Top 3 VoIP and Cloud Telephony Providers

Here are three top VoIP providers known for their reliability, features, and customer satisfaction:

1. Dialaxy:

Dialaxy is a reputable company widely recognized for its scalable and cost-effective Voice over Internet Protocol (VoIP) solutions. They offer comprehensive features, including call recording, virtual numbers, and Customer Relationship Management (CRM) integration. Their primary focus is on delivering customized solutions designed to cater to businesses of various sizes, prioritizing flexibility and dedicated customer support.

2. RingCentral:

It provides various communication tools, including advanced features such as high-quality video conferencing, seamless team messaging, and seamless integrations with various business applications.

3. Zoom Phone:

Zoom Phone is renowned for its exceptional voice and video call quality. It seamlessly integrates with Zoom Meetings and offers various collaboration features to enhance communication and productivity.

Here are three leading cloud telephony providers renowned for their dependability, extensive features, and user-friendly interfaces:

1. Twilio:

Twilio provides a flexible and powerful platform that enables developers to create communication applications using a variety of APIs. These APIs cover various communication methods, including voice calling, SMS messaging, and video conferencing. Twilio is highly regarded for its ability to scale with the needs of its users and for its suite of developer-friendly tools that make building and maintaining these communication applications more efficient and effective.

2. Plivo:

Plivo offers a comprehensive cloud communications platform with voice calls, SMS, and SIP trunking capabilities. This platform is built for seamless integration into current systems and is designed to scale effectively.

3. Nexmo, the Vonage API Platform:

Nexmo provides an extensive API platform for voice, SMS, and messaging applications. The platform is renowned for its expansive global coverage, dependable performance, and user-friendly development tools.

Final Words

Both VoIP and cloud telephony have transformed the way businesses communicate, offering cost-effective, flexible, and feature-rich solutions compared to traditional landline services.

Understanding the key differences between these technologies empowers businesses to make informed decisions that align with their unique requirements and drive their communication strategies forward.

FAQs

What happens to VoIP when the internet is down?

When your internet is down, your VoIP provider will reroute calls to a backup number so after that you won’t miss any business communications.

Why move to cloud telephony?

Because all calls are managed in an off-site data cloud, you don’t need to connect your system to the PSTN, and there is no need for costly installations or ongoing system maintenance. All required is a stable Wifi or broadband connection and a VoIP service provider.

Is cloud telephony the same as VoIP?

While they’re both related, they’re not quite the same thing. Let’s break it down in simple terms. VoIP, or Voice over Internet Protocol, is all about making phone calls using the internet instead of traditional phone lines, while a cloud-based phone system uses VoIP phone calls but operates in cloud-based systems.

Can they be used together?

Yes, Cloud Telephony often uses VoIP as a foundational technology, integrating it with other communication and management features.

Which is better for a small business?

Both Cloud Telephony and VoIP can be excellent for small businesses. Cloud Telephony may be more suitable if you need comprehensive communication solutions with integrated features and scalability. VoIP might be the better option if you need primarily voice communication with cost efficiency.