Cloud Telephony

Top 15 Reasons Why Small Businesses Should Switch to Cloud Telephony

Cloud telephony is the next-generation technology being adopted by businesses these days. Business communication is now much easier than it was before with the use of cloud telephony

For small businesses, setting up a well-founded communications channel with partners, vendors, prospects, and customers is of greatest importance.

However since small businesses have a small team, they find it very difficult to manage phone calls, emails, text messages, etc altogether. This is even more difficult if the team has to work remotely. 

In this backdrop, cloud telephony proves to be a blessing. So what is this? ?How does it work and what are the components of it? Let us discuss about this in the blog post.

We have also discussed top 15 reasons why one should switch to cloud based telephony.

Table of contents

  • What is Cloud Telephony?
  • What are the Components of Cloud Telephony?
  • How does Cloud Telephony Work?
  • Drawbacks of Traditional Phone System
  • Top 15 Reasons Why Small Businesses Should Switch To Cloud Telephony
  • How to Switch Your Telephony System
  • Top Cloud Telephony Service Providers
  • Conclusion

What is Cloud Telephony?

Cloud telephony is a virtual phone system that works through an internet connection. It is also known as a cloud phone system, VoIP (Voice over Internet Protocol) phone system, or  virtual phone system.

There is no need for any hardware and neither is it located at one specific location. You can make and receive calls from any location or device. 

A type of Unified Communications as a Service (UCaaS), cloud telephony not only lets you move your phone system to the cloud but also lets your phone calls be connected to video meetings, CRM, instant messaging, etc. This makes sure that your teams are well connected. 

What are the Components of Cloud Telephony?

Cloud telephony has many important components to make an enterprise more efficient. The following are the key components of any cloud telephony system;

Phone Numbers

Three main types of phone numbers make up a cloud telephony system; 

  • Virtual number

A virtual number is a phone number that is used for call forwarding to a PRI Line in the data center

  • Toll-Free Number/ Toll Number

A toll-free number is a phone number starting with codes — 800, 888, 877, 866, 855, 844, or 833, and customers calling this number are not billed (it’s free of cost). 

  • PRI/ Primary Rate Interface number

A PRI number is a phone number that allows 23 concurrent transmissions of voice, data, or video traffic between the network and the user.

Powerful Internet Connectivity

Powerful internet connectivity allows faster data transmission through phone calls and also improves the quality of phone calls.


Servers with many PRI lines comprise cloud telephony. These allow call recordings, IVR reporting, etc. These are hosted in a secure data center. Calls made to the number displayed on your website would be forwarded on PRI lines.

Agent numbers

Known as landing numbers or extensions, these are the phone numbers where the call comes.


IVR/Interactive Voice Response is built within cloud telephony that automates your business telephony system. It answers all the incoming calls automatically. It comprises a prerecorded voice message. Depending upon the menu options selected by the customer, the call gets connected to an agent.   


The endpoints that comprise cloud telephony are softphone apps, IP office phones, and mobile smartphones. 


How does Cloud Telephony Work?

Cloud telephony works in such a way that the phone call from a customer is connected to an agent through the internet. This software is designed in such a way that analog voice signals (a signal that has a continuously and smoothly varying amplitude or frequency) are converted to data packets. These data packets are then transmitted to the receiver’s end via an internet connection. The transfer is made through a PRI line that is linked to a cloud telephony server with a PRI card. 

Drawbacks of Traditional Phone System

Back when cloud telephony was not introduced, businesses would rely on traditional phone systems. It had few advantages like it required only a one-time large payment to purchase it and the monthly charges were less. 

However, a traditional or legacy phone system has many drawbacks when compared to cloud-based telephony. Here is a brief about them.

  1. Too Costly: Traditional phone systems are way too costly when compared to cloud telephony services. This is because the former requires hardware, and installation equipment, both of which are expensive. Additionally, the upgradation of the traditional phone system with new features also requires extra cost and is a very complicated process.
  • Completely Dependent on Power Supply: Traditional phone systems are completely dependent upon power supply. So in case of power failure or power outages, these phone systems do not work and can get damaged leading to the loss of sensitive business data that cannot be recovered. 
  • Need for Separate Telephone Line for Each Customer: Traditional phone systems are designed in such a way that each customer requires a designated telephone line and if there is any need for any modification, then every time a technician has to visit the premises for it. It is quite frustrating and time-consuming.  
  • Lack of Mobility: Since traditional phone systems are on premise, at a particular location, where copper wires are connected to a telephone, there is no mobility. .  
  • Poor Quality: Traditional phone systems have a risk of hardware failure, the quality of wires used can be poor and thereby giving a poor usability experience.Natural calamities can have a major impact and you stand at losing much.

What are the Top 15 Reasons Why Small Businesses Should Switch to Cloud telephony?

A critical element of success for small businesses is voice communication. With voice communication, these businesses can securely communicate with customers, approach prospective clients, and operate their business. 

Cloud telephony can help such businesses embrace the many benefits of voice communication effectively. Here are a few top reasons why small businesses should switch to cloud telephony.

Can Handle Large Call Volumes

Cloud telephony with an inbuilt IVR helps small businesses to handle large incoming call volumes efficiently. Each call is handled consistently with an IVR system that deals with all the incoming queries and then routes the call to the right agent. There is no longer need for receptionists to handle a large number of customers’ calls.   

Is Flexible, Easy to Scale Up, and Easy to Set Up

Cloud telephony is more flexible, easy to scale up, and easy to set up than traditional phone systems.

With an expansion of business, there is a need for scaling up communication systems along with the need of hiring new staff plus there can be new customers boarded. With cloud telephony, you need not worry about this. You can add many extensions; accommodate high call volume, etc. It is also portable since it only requires an internet connection and a VoIP desk phone. The implementation of cloud telephony is also faster.

Is Reliable & Offers Data protection, Data recovery

Cloud telephony is more reliable than traditional phone systems. It can keep your business running even when a disaster strikes like natural calamities, cybersecurity attacks, and even human errors.

With disasters like the above, your business can run into risk and you may stand losing data as well as customers if you rely on traditional phone systems or on-premises PBX systems.   

Since cloud telephony relies on an internet connection, your data can be kept safe and secure. Even if your business faces cybersecurity attacks, you need not worry about losing the data as cloud telephony allows you to recover the data. With reputable cloud telephony solutions, you are guaranteed 99.99% uptime, so you can continue working as usual.


Cost Effective

Cloud telephony is more cost-effective than traditional phone systems as it does not require any hardware/ huge equipment. It has low maintenance costs too.

Global access & Limitless geographical extension

With cloud telephony, you can have global access and limitless geographical extension of your business. This is because you have the freedom to connect your phone system to any device anywhere in the world through the internet. You can hire, and monitor staff from around the world through cloud telephony.

Manageability and Remote Work Access

Managing your phone and data services has never been easier with cloud telephony, which delivers the best experience without the hassle of managing your service yourself. It is easy to manage and offers smooth functionality. It allows for simplifying your work with integrated communications.

Moreover, since all the data is stored in the cloud and the virtual number is used, it also enables your business to work remotely. There is no need for extra infrastructure.

Amazing Features

Cloud telephony offers you many amazing and robust features that a traditional phone system doesn’t.  Some of the features include as described below.

  • The Auto-attendant that will assist your callers in reaching the appropriate department.
  • Call forwarding, which routes incoming calls according to predefined criteria. Calls can be forwarded to a desk phone or mobile phone of your choice.
  • Enhanced Interactive Voice Response (IVR), an interactive approach to automated customer service.
  • Video conferencing and screen sharing that facilitates productive remote meetings.
  • Toll-free numbers thatenable customers to reach you from their landlines without incurring an additional toll charge.
  • Local numbers that will enable you to establish a local presence wherever you desire
  • Call recording feature with secure and reliable quality service.

Better Visibility

In addition to recording all calls, cloud telephony records operational data such as channels of inbound calls, call volumes, duration of calls, the timing of calls, agents’ response times, the average number of calls that each employee makes, etc.

Operational leaders can utilize this information to monitor SLA compliance, to monitor and train employees, to make data-driven strategic decisions, and to maintain customer records in the event of a dispu

Automatic updates

Due to its internet-based nature, cloud telephony continually updates itself. As a result, you have access to the best communication technologies at all times, and you are never in danger of your infrastructure becoming outdated.


Cloud telephony can easily integrate CRM software that helps you to manage customer life cycle – from marketing campaigns (missed calls, SMS service) to customer retention (call center solution, live chat) and more.

Having this capability is crucial, since it allows the integration of every piece of information regarding a particular lead or contact during a conversation, regardless of the method of communication. By retrieving such information for such a contact, you are enhancing the experience of customer communication and improving conversion rates for your overall sales operations.

Smooth Customer Support

Cloud telephony revolutionizes how businesses communicate with customers. Customers expect their calls to be answered quickly and reliably, even if they are calling from the other side of the world.

Instead of relying on expensive landlines and conventional phone systems, communication with customers through a cloud telephony system is swift and easy.

This means that instead of waiting on hold, or being transferred from one department to another, customers can speak with a single agent when they have a question or concern. This saves businesses time, money, improve their customer service and customer support.

It helps you provide technical support and provide answers to all the questions asked by customers. 

Good Call Quality

Call quality refers to how efficiently and effectively a customer service representative communicates with them. Qualitative calls are courteous, professional, sincere, timely, and effective in resolving the problem.

With IVR feature of cloud telephony, quick call resolution is possible with agents; you get better call quality with cloud telephony than traditional phone systems.  You can also monitor the calls through call recordings, customer satisfaction surveys enabled through IVR.  


Cloud telephony enables mobility for the future of business: anywhere, anytime, anyway. It is the future of communication and the only way to truly scale your business when you are on the go.

Unlike traditional telephones, cloud telephony enables you to make calls from any device, anywhere. This gives you the ability to reach more customers, increase productivity, and save money on telecom.

Quick Responses

Cloud telephony enables you to respond more quickly to customers, freeing up valuable time and resources to focus on other critical tasks.

It also provides you with the ability to expand and contract services easily. You don’t have to worry about whether or not you have the right amount of hardware and staff to meet the demand of your customers.

Enhanced Customer Experience

Cloud telephony enables users to respond to calls and text messages with the same degree of speed, reliability, and comfort as traditional landline and wireless solutions. The result is a better experience for users, and better revenue for businesses.

Cloud telephony improves customer experience and increase productivity, such as using text chat for their customers instead of a call, or using video conferencing for remote employees instead of travel, so they can be more productive. This has also led to an increase in the number of users, including those on the go, who can use cloud telephony to stay connected, even when they lack traditional connectivity.

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How to Switch Your Telephony System?

No matter which vendor or brand you choose, the technology behind a VoIP or cloud-based telephony system is the same. This sophisticated technology behind a VoIP or cloud-based telephony system is the same regardless of the brand or vendor smartphones.

Therefore, the physical implementation is the same everywhere. You should consider three factors:

1. Goals for the business

2. Finances

3. Collaboration with technology partners

Goals for the business

By implementing cloud telephony, what are you hoping to achieve? What is your goal? Are you hoping to streamline processes, offer better customer service, or free up IT resources for other projects? Or are you simply attempting to prepare your business for the future? There are many advantages of cloud communications, but understanding which outcomes are most important can assist you in making the right choice


Considering more than just the price tag when comparing your existing on-premise system and a cloud-based alternative is the key. Learn about the costs of your existing investments, including licensing fees, hardware, and infrastructure.

Additionally, there are one-off costs associated with legacy hardware, such as upgrades and maintenance fees.

Analyze which expenditures will be eliminated with the adoption of a new system and when, how expenses will change (i.e. Capex to Opex), and shifts in resource allocation to get an overview of communications costs.

When you have established your objectives and budget, it is time to roll up your sleeves and begin planning your cloud migration project. Whenever you embark on a new initiative, you will need to give your team adequate time to plan, analyze, test, and communicate.

You can keep your migration to the cloud on track using this step-by-step timeline.

Collaboration with technology partners

It is not a static process to change a phone system. The operation of your business is a moving vehicle, requiring minimal downtime and maximum business continuity. A technology partner who understands this and can implement your new technology seamlessly is essential.

It is also important to engage a partner with the ability to provide a single window into your new systems. One of the most challenging aspects of leveraging the power of cloud telephony is to guarantee quality performance.

You should include questions about your experience in these areas, as well as specific to your market, when you are creating an RFP (request for proposal) for the market. Keeping up with technology demands more than just price – it requires expertise and quality service

Have u ever heard of drip marketing campaign? If not then check out our blog here

Top Cloud Telephony Service Providers

The best cloud telephony service providers in the industry will provide you with the best experience possible, whether you’re calling in from your office, on the road, etc. They will also provide you with the best service and support when you need it most.

The best cloud telephony service providers will also help you save money and energy by providing you with the energy efficient telephones and equipment you need to operate your business efficiently.

The best cloud telephony providers offer a range of services, including VoIP, unified communication, and IVR. They are also able to provide 24/7 technical support, so if you encounter any problems, you can reach out and get help immediately.

You can find the best cloud telephony providers in a variety of ways: by reputation, by the number of positive reviews in the industry, or by searching for the best providers in a particular niche. Here is a list of top cloud telephony service providers.

1.  Office24by7

Office24by7 is the top cloud telephony service provider that will help you interact with customers over incoming and outgoing calls at scale. You can engage customers with self-service inbound IVR, and outbound dialers. Our cloud telephony solution has brilliant features like agent CTI, hierarchical monitoring, post call survey and feedback to name a few.

2.  Servetel

Servetel is the next top cloud telephony service provider that ensures you have a stable and efficient communication between your customers and your business. With many features like toll free number, virtual number, IVR, missed call service, voice broadcasting,Servetel’s cloud telephony solution helps you empower your business and enables your business to work remotely too.

3. Exotel

Exotel is one of the most reliable cloud telephony service providers powering business continuity for enterprise sales & support teams over voice & SMS. It offers secure, flexible cloud telephony solution for enterprises and small businesses.

4. Ring central

Ring Central is another cloud telephony service provider, whose cloud telephony solution is designed for business use, made for flexibility and mobility, has user-friendly deployment, is not hardware-heavy, and promises award-winning customer support and everything you need in one phone system plan.

5. Air call

Ring Central is yet another cloud telephony service provider, whose cloud telephony solution is designed for the modern businesses. It has many features like toll-free numbers, internationalnumbers, call conferencing, voicemail, call routing, IVR, virtual call center, SMS business text messaging, etc.


The pandemic has made many businesses to switch over to cloud telephony.  Its numerous advantages over traditional phone systems make it an ideal choice for your business.

Office24by7 is offering the best cloud telephony solution. In addition to cloud telephony solution, we also provide IVR service, missed call service, click to call service, audio conference service, voice broadcasting service, virtual number service, drip management service, source tracker service, email marketing service, builder service, SMS marketing service, voice marketing service, push notifications service, contact management service, sales automation service, mobile CRM software, task management software, ticketing management software.

If your business needs the best cloud telephony solution, give us a call at +91 7097171717 or drop an email at today.