A Guide to Understanding Voice Over IP and Cloud Phone Systems

A Guide to Understanding Voice Over IP and Cloud Phone Systems

If you belong to the telecom industry, then you may have come across the terms “business VoIP” and “cloud phone system” often without really knowing what they stand for. Sometimes, some people tend to interchange them, which then causes quite a bit of confusion about which is which.

Luckily, the two terms aren’t that far apart and have similar definitions. A business voice over IP solution and a cloud phone system provides the same phone system functions. To shed some clarity on the particulars, we’ve compiled a quick guide that defines and differentiates both systems so that you understand which you need for your business.

What is VoIP?

A business VoIP is a general term that stands for several internet-based VoIP services. Even though modern technology has evolved and made significant advancements through the years, people can still expect a business phone system to work the same way it did all that time ago.

Various companies belonging to different industries can rely on business VoIP if they want to keep from spending on individual phone lines that operate on residential wiring. If your business relies on extension dialing and calling solutions, then you stand to benefit from having a business VoIP solution too. 

What is a Cloud Phone System?

At present, plenty of business VoIP services have been renamed as cloud phone systems, which is the reason why people mistake them for providing the same solutions. In fact, the cloud refers to the way the VoIP provider’s servers connect.  

While there’s not much difference between a cloud service and a hosted business VoIP service, a cloud just means an extension of the host. As a result, both methods indicate that a VoIP company is in charge of the hardware of the phone service being used. The term “cloud” symbolizes how the VoIP servers consume information.

The Difference Between a VoIP and Cloud Phone System

Plenty of cloud phone systems used by industries in today’s modern business setting continue to utilize business VoIP features, including auto attendants, automatic call distribution queues, and call monitoring solutions. Similarly, the cloud phone system that used to be marketed as a form of private branch exchange (PBX) has now evolved into Unified Communications (UC). 

Now, all devices working with an internet connection can turn into a running phone, such as your computer, tablet, and smartphone. With the rise of UC, users can now utilize web phones and softphones to initiate a connection and serve various additional functions, such as extension dialing, video calling, and voicemail management. 

Besides that, cloud phone systems deliver efficient methods for business professionals to connect with their colleagues and customers through real-time features, instant messaging, call analytics, and click-to-call options. That’s why a lot of phone systems strive to maintain PBX features to make their work more productive.

Which is Better: Business VoIP or Cloud Phone System?

If you’re looking to incorporate a business VoIP or a cloud phone system into your business with the help of a cheap VoIP or cloud system provider, the decision you make will depend on your needs. You can prefer to choose just one, or if you have the funds, then use both for the best results.

It all comes down to doing your research and learning the features offered to you that will be good for your company in the long run. You have to read through the details and understand their benefits and figure out what you need the most to ensure your business improves because of what you end up choosing.


A business VoIP and cloud phone system both work together to help businesses achieve their goals and improve their operations. Whether you choose business VoIP or cloud phone system, it’s up to you and what works for your company’s welfare. You can rely on a professional that offers VoIP for businesses to assist you in making a sound decision that will ultimately benefit your business’ overall processes. 

Are you looking for a provider of VoIP solutions in New York for your business? Improcom is a leading phone system company that offers high-class VoIP phone services and Unified Communications solutions to small and medium-sized clients. Get in touch with us today to start setting up your phone system!

Are you looking to upgrade your traditional phone system? We’re a leader in the business phone system market offering world-class VoIP services in Brooklyn. If you need VoIP solutions for your business, whether small or medium-sized, get in touch with us today to see how we can help!

A Guide to Understanding Voice Over IP and Cloud Phone Systems