Glossary
What is a cloud phone system?
Definition
A cloud phone system is a business phone service hosted and managed by a provider over the internet rather than on hardware at your office. It delivers calling and phone features through the cloud, accessible from many devices. It is also known as hosted PBX or cloud PBX.
01How a cloud phone system works
Instead of a physical PBX on the premises, the call-handling infrastructure runs in the provider's data centers and connects to users over the internet using VoIP. Employees access it through desk phones, softphones, or apps, and administrators manage settings through a web portal. The provider handles maintenance, updates, and scaling.
02Features and benefits
Cloud phone systems typically include call routing, voicemail, auto attendants, extensions, and support for remote and multi-location teams. Because they are software-based, they can add lines and features quickly and connect to other business tools. This also makes it straightforward to integrate services like AI receptionists and call analytics.
03Cloud versus on-premises
A traditional on-premises system requires hardware, installation, and in-house maintenance, while a cloud system shifts that responsibility to the provider. Cloud systems usually favor a subscription model and easier scaling, whereas on-premises may appeal to organizations with specific control or compliance needs. Many businesses migrate to the cloud for flexibility and lower upfront cost.
Frequently asked questions
Is a cloud phone system the same as VoIP?
They are related. VoIP is the technology that carries calls over the internet, and a cloud phone system is a hosted service that uses VoIP to provide business phone features.
What is hosted PBX?
Hosted PBX is another name for a cloud phone system, where the call-management infrastructure is run by a provider in the cloud instead of on hardware at your office.
See also
Related terms
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