Why is a Cloud-based Phone System Necessary? 

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You must have heard everyone talking about a “cloud-based phone system.” It must have left you with several questions unanswered in your head like what is a cloud-based phone system? What are its advantages? Why is a cloud-based phone system necessary? How does it help a business streamline operations and provide excellent customer support?

If so, we are here to guide you.

In this blog, you will learn everything about a cloud phone system, including its key features, and benefits for a business. 

Without any further delay, let’s get started. 

What is a Cloud-based Phone System?

A cloud-based phone system also known as cloud PBX (Private Branch Exchange) or Voice over Internet Protocol (VoIP) phone system is a telephony solution that uses an internet connection to transmit voice and any other data on any internet-connected devices. It means it allows individuals and companies to make and receive phone calls through WIFI. 

It is a modern telephony system. Unlike traditional phone systems, it doesn’t require on-premises telephone lines or other special hardware equipment to make a call. Moreover, it offers more calling features than traditional telephony systems. 

As of now, many small to large-scale industries use it as part of a unified communications platform to handle incoming and outgoing phone calls, voicemail, chat, and text messages. It has completely revolutionized how business operates.

Features of a Cloud-based Phone System

A cloud-based business phone system isn’t just a solution to make and receive phone calls over the Internet. It offers a plethora of features that extend beyond receiving and making calls. Its advanced features allow businesses to regulate their operations workflow and manage phone calls effectively.

Let’s dive into some key features of a cloud-based phone system and the functionality of these features:

  1. Call Forwarding: It allows an individual or a company to forward incoming calls to another number. This feature is advantageous if you are unavailable to answer calls, out of the office, or traveling abroad,  but you want someone to take the call in your place. By doing so, none of the calls would be left unanswered.
  1. Call Monitoring: It allows supervisors and managers to listen in on live calls between their staff and customers. It enables them to gain insights into staff performance, productivity, and client satisfaction. 
  1. Call Recording: This feature permits companies to record their conversation with clients during phone calls. Companies can use these recorded calls for future use. For example, for training purposes, settling potential disputes, or recalling conversations. 
  1. Call Routing: Cloud-based phone system enables you to set up call routing rules based on criteria like caller ID, time of the day, availability of agents, etc. It ensures that every customer call is answered by the appropriate department and agent.
  1. Voicemail-to-email: This cloud telephony feature allows you to send voicemail to the designed email address. It sends a voicemail as an audio file attachment. You can also transcribe voicemails into texts and send them to the email address of your choice.
  1. Integration: One of the best features of the cloud PBX phone system is its integration capability. You can integrate a cloud phone system with customer relationship management (CRM) software, Zendesk, Microsoft, Slack, or other business software. Thus, a business can streamline its processes through many softwares uniformly.
  1. Interactive Voice Response (IVR): IVR system allows to create a phone menu. A phone menu consists of a set of pre-recorded instructions that helps a caller reach the suitable department or agents. You hear the pre-recorded messages and press a specific number on your keypad to receive the help you need without talking to a live agent.
  1. Call Analytics and Reporting: This feature provides detailed information on call metrics like call volumes, call status, wait time, call duration, and total number of answered and unanswered calls. Moreover, it also gives insights into employee performance and the effectiveness of particular marketing and advertising campaigns.
  1. Unlimited Calling: Some VoIP phone system allows you to make and receive unlimited calls from anywhere. It also allows you to send and receive unlimited text messages.
  1. Video Calling: It allows you to talk with other people face-to-face through video calls from mobile phones, laptops, PCs, etc.
  1. Auto attendant: The purpose of an auto attendant includes greeting callers, receiving incoming calls, routing calls to appropriate agents and departments, and playing music during call holds.
  1. Video Conferencing: This feature allows businesses to hold online video meetings with their clients or remote staff from anywhere as long as they have a stable WIFI connection. During a virtual meeting, a presenter can also share their screen with presentees.
  1. Call Whispering: This feature permits top-level staff to listen to a conversation between an employee and a client and offer advice to employees without customers knowing or hearing it during a live call.
  1. Call queuing: This feature keeps a caller in a virtual queue during busy times when an agent is not available to pick up a call. It also plays hold music for a caller during the waiting time.

How Does a Cloud-based Phone System Work?

A cloud-based phone system works by using an internet connection to handle outbound and inbound calls. You don’t need to set up special on-premises hardware and software to install a cloud-based phone system. You can make and receive calls through any internet-connected device.

Here’s how a cloud-based phone system works:

  1. When you make a call, the VoIP technology converts your voice into data packets and sent over the internet to the cloud.
  2. The cloud figures out where the call needs to go – inside or outside the office premises.
  3. The cloud then routes the call to the recipient’s phone number.
  4. Upon reaching its destination, the voice data is converted back into sound.

10 Benefits of a Cloud-based Phone System

In addition to handling business calls effectively, a cloud-based phone system provides several other benefits for a business. These benefits are:

  1. Save the upfront hardware costs: Since it is cloud-based, a virtual phone system like KrispCall does not require setting up expensive hardware equipment like cables, telephone wires, lines, etc. You only need good internet connectivity to make outbound and inbound calls. As a result, you can save up costs spent on purchasing hardware.
  1. Enhance customer satisfaction: Customers become satisfied when they receive quality support from the business. It includes companies picking up their calls every time they call and getting responses to their queries. And a cloud-based phone system has several features that ensure customer calls are answered promptly,  their questions are answered, and their calls are transferred to the suitable departments.
  1. Extensive features: It offers several cutting-edge VoIP features like call routing, IVR, call recording, video conferencing, call monitoring, and many more that traditional phone system doesn’t provide. These features help in effective call management.
  1. Highly scalable: A cloud telephony system is highly scalable. You can add or remove users, features, extensions, or phone lines anytime you wish without going through lengthy processes and changes.
  1. Remote accessibility: A cloud PBX telephony system is independent of geographical location. Hence, businesses can use it from anywhere through an internet connection. It is highly beneficial for digital nomads and companies with remote teams.
  1. No maintenance burden: The VoIP phone provider does all the maintenance and update tasks in a cloud-based telephone system. Businesses don’t have to worry about doing these technical works.
  1. Automation: A cloud-based business phone system consists of features like IVR and auto attendant that helps automates business tasks like call answering and routing. As a result, companies don’t need to hire new employees to do these tasks, resulting in cost-saving for a business. 
  1. Flexibility: You can use an internet-based phone system from anywhere, such as from home, office, or other places with an internet connection. Also, it gives you the flexibility to access your contact lists and call logs from any electronic device. 
  1. Easy to set up: This phone system is easy to set up. It doesn’t involve installing complicated phone lines or cables. Also, anyone with less technical knowledge can use it.
  1. Automatic update: The internet-based phone system automatically updates. Thus, you can consistently enjoy the latest features and functionality.


In this way, a cloud-based telephony system is a modern solution for modern business in this competitive era. It is ideal for all businesses ranging from small to large-scale industries. Also, any business type like healthcare, education, legal firms, transportation, technology, contact center, real estate, and many more can leverage this service and take advantage of its top-notch features. 

Besides this, it provides several benefits to a business, including enhancing customer service, reducing hardware and maintenance costs, top-notch features, smooth business operations, and so on. Additionally, it is the best internet telephony for business looking for a cost-effective, flexible, and reliable phone system.


  1. What are the common reasons to use cloud-based phone systems?

The common reasons to use cloud-based phone systems include:

  • Easy to set up.
  • Affordable than traditional phone systems.
  • Offers a variety of call management features to handle calls effectively and efficiently.
  • Highly flexible and reliable.
  • Reduce hardware cost.
  • No maintenance burden.
  1. What are the disadvantages of cloud-based phone systems?

Some disadvantages of cloud-based phone systems include:

  • Dependent on the internet connection.
  • Occasional call quality issues may occur.
  • Periodic call lagging due to poor internet connection.