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What Is Cloud Telephony and How Does It Function?

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Technological advancements continuously upgrade traditional processes that used to be very hectic and slower earlier. Today we have the liberty to access any information using the internet and connect with our loved ones in no time. The invention of cloud telephony solutions in the communication sector has revolutionized the way of communication. Before cloud telephony technology, businesses were completely dependent on traditional phone lines. 

Sometimes, they face multiple issues related to voice quality, service, and connectivity issues while connecting with customers. Cloud telephony is the perfect solution for uninterrupted communication, and it allows businesses to minimize costs significantly on a calling process and enhance business performance.  

Today in this blog post, we will discuss cloud telephony and how it functions. Also, we will talk about parameters that you should consider while selecting a cloud-based telephony service. So go through the complete article to know more about this topic and clear all your doubts about cloud telephony. 

What is Cloud Telephony?

In simple language, we can understand cloud telephony as a system that operates over an internet connection. It is also called VoIP based hosted PBX solution. It allows organizations to move their business’s phone service to the cloud.

The system streamlines your business communication process and contributes to the growth of your business. With the help of this technology, companies can easily shift their working space to new locations, hire remote workers and expand their in-house teams effortlessly. 

Cloud telephony is a kind of unified communications as a service (UCaaS) which mean it is designed to enhance the communication module by bringing various system and tools together.

With the cloud, you can perform several operations, such as audio & video meetings, CRM, and instant messaging business process across multiple channels.

This advanced service aims to enhance the quality of communication between two or more individuals by making them more focused and engaged during the conversation. 


Read More: How Voice Calling API Can Boost Your Business Growth


How Does Cloud Telephony Function?

The working functionality of cloud telephony is similar to the traditional way of communication. However, the major factor that differentiates one from another is- traditional phone systems require physical installation while the cloud-based system is installed over service providers’ premises and utilizes a cloud network for functioning.

When a user dials a number from his phone, its first redirected to Hoster Public Branch Exchange (PBX) on the cloud.

This interchange and transfer of data are made through a primary rate interface (PRI) line, which is linked to the telephony server with a PRI card (it’s telecommunication criteria that should be matched for Cloud telephony’s functioning.

PRI line work on ISDN, enable voice, video, data, and other services between the user and the network)

This hosted PBX is capable enough to store important phone numbers and information to predecided routing structure for every call.

Office phone systems of organizations are connected to the hosted PBX, Every call reaching PBX decides its best possible agent after browsing through the set parameters in the system. Once the server decides on the most suitable agent for the request. It automatically shares the communication bridge between the customer and the agent over the phone lines.

Why Should Businesses Go for Cloud Telephony?

Cloud Telephony Business India

Cloud telephony is an advanced technology that helps organizations to improve their everyday processes and productivity. This technology is equipped with several features. These features are quite beneficial and profit-making for organizations. 

Some of them are listed below:

  • Voicemail
  • Call forwarding
  • Automatic attendant
  • Call recording and monitoring
  • Ease of use with several platforms
  • Easy integration

Cloud telephony services in India are quite popular as they not only help businesses to automate their services but also strengthen their client base. Also, these services help enterprises to make their brand visible to millions of customers through information broadcasting tools.


It’s a methodology of storing voice data electronically. This feature is helpful in cases where agents are occupied with other calls and unable to respond to customers at that moment. With the help of these voice recordings, agents figure out the customers’ queries and help them to get their queries resolved. 


Read More: How SMS OTP Verification Works And Its Importance


Call Forwarding

This unique feature is quite helpful for users and businesses. With this feature’s help, businesses ensure agents’ availability for customer calls. Whenever a customer calls a business and if he is unable to connect with an agent, the system automatically forwards the customer’s call to the available agent’s phone line.

In simple language, cloud services help you forward incoming calls to the desired number. All you need to do is select a list of forwarding numbers, and the system will automatically forward your call to numbers sorted by setting priorities.

Automatic Attendant

The interactive voice response system is quite a smart feature that helps organizations to answer customers’ calls automatically with a recorded greeting message. This feature replaces the need for a resource to handle calls manually. Auto attendant is quite beneficial for the organization as it saves huge costs required for setting up a dedicated team of resources for answering customers’ queries. 

Call Recording and Monitoring

Maintaining the quality standard of service or product is a must for businesses if they want to stand out from the crowd. An organization with a larger database must deliver high customer service to maintain the quality of its services and products.

With the help of the call recording feature, businesses can record all the telephonic interactions between customers and agents to work on those areas that require more attention and improvement. That way, they can enhance the call quality standard and resolve customer queries efficiently. 

Platform Independent

Cloud telephony systems are platform-independent and they can easily be integrated with desktop and mobile apps. You can easily integrate your CRM, or industry-specific management system into your cloud telephony solutions and maximize your usage.

These solutions come with user-friendly interfaces and are easily accessible by users through web platforms. Could telephony service providers understand the need for a user-friendly interface that’s the reason why they develop less complicated apps for easy functioning? 

Benefits of Using Cloud Telephony Services

We all accept that new technological advancements have diversified the way we work, and that’s why we need to be updated with the latest technologies if we don’t want to lose our valuable customers because of communication issues.

Could telephony solutions not only help organizations deal with customer queries but also contribute to brand building.  

Here are some cloud telephony benefits that you need to know:

No Hussle with Setup

Cloud telephony solution implementation is quite cost-efficient as it requires no on-site infrastructure cost. That means you can integrate these solutions with your existing CRM and platforms without any installation delay and start functioning within a day. 

 The best thing about these solutions, is they require no technicality, no complicated process of installation, no wiring or hiring of full-time employees to work with the new telephony system. Your service provider will assist you in every possible manner and take care of everything. Once the installation is done you will be able to get access to a customized dashboard for call management 

Cost Efficient

Cloud telephony solutions helps you to save money in multiple ways. With these solutions, you can save by up to 65% of your traditional phone bill. It helps you minimize maintenance costs and restrictions attached to limited calling minutes etc. 

Robust Calling Features

Cloud telephony features help you leverage advanced calling features and improve productivity, these solutions allow you to work efficiently and prioritize the task for better outcomes. With these solutions, you can easily avoid manual errors, and repetition of tasks and answer customer queries with perfection 

Some of the crucial call management features of cloud telephony are given below: 

  • Auto-attendant feature of cloud-based telephony service allows callers to reach the right department 
  • The call forwarding feature redirects inbound calls based on pre-decided criteria.
  • Advanced Interactive Voice Response (IVR) for automated customer service.
  • Video conferencing along with screen sharing for remote meetings.
  • Toll-free numbers enable customers to connect with your business from landlines without extra charges.
  • Local numbers allow you to establish a local presence in the market 
  • The call recording feature helps you to maintain the quality of services 

Frequently Asked Questions

What Is Cloud Telephony Service?

Cloud telephony is a phone system that functions over an internet connection. It’s also known as a VoIP-based hosted PBX solution, and it helps you move your business phone service to the cloud.

Cloud telephony is an advanced phone system that operates over an internet connection. It is also called a VoIP-based hosted PBX solution. With the help of cloud telephony, we can move our business phone service to the cloud and streamline our business communications.

Why Is Cloud Telephony Important?

Cloud telephony is quite beneficial for enterprises and helps them to grow their business. 

There are many benefits of using cloud telephony, some of which are given below: 

  • Cloud telephony offers enterprise-grade communication for all teams.
  • Supports marketing initiatives beyond calls
  • Offers quality communication at scale
  • Increases agent productivity
  • It saves employee time.

How Does The Concept Of Cloud Telephony Work?

The working functionality of cloud telephony is similar to the traditional way of communication. When a user dial a number from his phone, its first redirected to Hoster Public Branch Exchange (PBX) on the cloud.

This interchange and transfer of data is made through a primary rate interface (PRI) line which is linked to the telephony server with a PRI card (it’s telecommunication criteria that should be matched for Cloud telephony’s functioning. PRI line work on ISDN, enable voice, video, data, and other services between the user and the network)

Which Are The Best Cloud Telephony Providers In India? 

The Top 10 Cloud Telephony Service Providers In India Are Given Below :

  • Pulse
  • Exotel
  • Fonada
  • MyOperator
  • Servetel
  • CallHippo
  • Ozonetel
  • CloudConnect
  • Ameyo
  • Knowlarity