Since the emergence of the Internet as a reliable telecommunications network, more businesses are using it to provide phone services. Two of the most popular solutions are cloud-based and VoIP phone systems. Many people mistakenly believe these two options are identical, but they are slightly different. Below, learn how these two types of phone systems differ. 

What Is a Cloud Phone System?

Cloud telephone systems let your business take advantage of phone services without the need for expensive, on-site telephone hardware. Cloud systems transfer data over the Internet via IP addresses rather than over traditional telephone lines, so you can make and answer phone calls wherever you have an Internet connection. This makes the system eminently mobile, with no need to switch numbers and providers if your company should change locations. It also lets you receive calls and messages while you're traveling, as long as you have an Internet hookup. Cloud systems also provide an opportunity for instant messaging and call analytics. Finally, there is a lack of on-site hardware, as it is all stored on the cloud. This eliminates costly up-front hardware investment and long-term maintenance. Repairs and upgrades are also included in the monthly subscription cost.

What Is a VoIP Phone System?

VoIP stands for Voice over Internet Protocol, which essentially refers to the functionality described above.  Voice calls can be placed over the Internet instead of using phone lines. However, a business VoIP phone system is a virtual private branch exchange or a PBX. A PBX, which until recently were all based on landline phone hardware, answers calls and switches them between users. It also lets users communicate between themselves in-house and share a certain number of outgoing phone lines. Business VoIP refers to a particular type of cloud-based phone system that can replicate all the functionality of a traditional business telephone and voicemail system, and can be located on-site at your premise on a physical server or in the cloud on a virtual server.  Either way, the difference between VoIP and a traditional PBX is that VoIP phone systems are accessed through the cloud.

For assistance setting up a cloud-based or VoIP phone system for your business, contact ACC Telecom in Columbia, MD. They have been serving clients throughout the Baltimore area for more than 40 years. In addition to VoIP and cloud phone systems, they also specialize in security cameras and telecommunications equipment. Visit their website to reach out to them with questions or call (410) 995-0101 to arrange phone service.