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What’s The Difference Between Cloud Based Phones and VoIP?

People quite often think that cloud-based phones and VoIP are the same thing. Or completely different. Or not sure what they are.

So, one of the questions you may be asked as a VoIP reseller is, what’s the difference between cloud-based phones and VoIP?

A Little Bit Of VoIP History

Surprisingly enough the first VoIP transmission was made in 1973 as part of the Advanced Research Projects Agency (ARPANET) in America (the first message by the way, was the rather underwhelming “This is a test”).

During the late 1990s, VoIP technology started to be used by businesses in most of the world’s main economic hubs. However, it was with the rolling out of broadband technologies in the early 2000s, that saw VoIP phone systems really start to take off.

Cloud Based Technology

In the early 2000s, cloud-based storage was beginning to be used. In its most basic form, this means that data is stored virtually. Instead of being stored on mobiles or servers, data is stored off site, hosted by other companies.

At the same time as VoIP and cloud storage was gaining popularity, Skype appeared on the scene.

Initially used for free phone calls using computers, Skype really got catapulted into the spotlight when they introduced video calls that didn’t require a specific device.

People could now make video calls on pretty much any device that had a camera and access to the internet.

So, to answer the question at the beginning of this article, cloud-based phones are different from VoIP Systems, but as VoIP systems are now increasingly becoming cloud based the lines are now slightly blurred.

The Benefits Of Cloud Based VoIP

The combination of these three huge developments in how we communicate happening at roughly the same time, has meant that VoIP providers have been able to incorporate the best benefits of Cloud based storage and Video call technology in their VoIP systems.

One of the main benefits of being cloud based for VoIP is that everything is available to everyone all of the time regardless of where they are.

It means that employees can access all of the functions of a VoIP system without having to use a specific handset or be in the office.

Also, the increased storage space available allows for smaller companies to have access to the sort of applications that in the past have been only available for bigger businesses.

Functions like a Virtual Receptionist and Never Missing A Call can now be utilised by anyone, no matter how small the company is.

VoIP systems mean that anyone contacting a business will get a professional response at all times, as all employees can use the functions of the virtual switchboard even when they are on the train, working from a coffee shop or have a glass of red in a café in Barcelona.

You can have a look at the virtual VoIP services the we at VipVoip can offer here.

Upsize Or Downsize

Because the VoIP system is cloud based, if a business is doing so well that they plan to expand, they can increase the functionality of their phone system without having to make room for extra hardware, servers, software and handsets.

Conversely, if a company is looking to downsize, then it is very simple to decrease the amount of VoIP functions. For example, reducing the number of extensions and voicemail options.

VoIP Flexibility

The ability to mix and match various functions is definitely worth pointing out to potential customers.

The idea of having specific voicemails for example, would be attractive for many companies who are busy over Christmas but who may not want the extra cost of having this feature throughout the year.

With cloud-based VoIP systems they will be able to add functions during their busy season and remove them for the months when they are not needed.

Saving Money With Cloud based VoIP Systems

One of the main reasons why companies will be looking to move to a VoIP platform from the more traditional phone systems is to save costs.

Along with the obvious benefit of being able to communicate using broadband instead of standard phone lines, which will reduce their phone bills, moving to a cloud-based system means that they will not have to spend money on new hardware, software or specific handsets.

The added benefit of employees being able to work in a virtual office wherever they are, means that productivity should increase as they can work from home or remote locations instead of having to take time off work or face a lengthy commute to the office.

Get In Touch

If you have found this information useful and would like to find out more about cloud-based VoIP phones and systems then please do not hesitate to contact us.

As well as a wealth of knowledge and guidance we are a VoIP provider for businesses and a VipVoIp reseller.

You can telephone us on 03300 881 182, email us at, or via our online contact form here.