What is a Cloud Phone System?

The VoIP world can come with a lot of new terms for businesses, but we are here to make it easy to understand.
Olivia Maier

Olivia Maier

8 min read

What we have for you today

Today we wanted to go over all the cloud phone with you, so that you can understand how this business technology works and could benefit your team.

We’re going get started by diving into what a cloud phone system is, and how they differ from an on-premise office phone system. From there we’ll discuss a few of the top benefits and reasons for making the switch to a cloud phone system. Finally, we’ll discuss’s intelligent cloud phone solution.

If that sounds good to you, then we can’t wait to get started!

What is a cloud phone system?

A cloud based phone system is a type of virtual phone system. Virtual phone systems may not be commonplace in your industry just yet, even though many teams have already made the switch. In case you aren’t familiar with virtual phone systems in general, here’s a quick rundown.

A traditional phone system relies on copper wires to transmit voice signals between phones. A virtual phone system leaves those phone wires and expensive hardware in the past, as they rely on the internet to send and receive voice signals. Virtual phone systems are able to offer flexibility through using advanced technology to deliver voice signals over the internet, making these solutions highly mobile and flexible.

A virtual phone system is also called VoIP, or internet telephony systems. There are two main types of VoIP systems, on-premise and cloud based. An on-premise solution requires your business to invest in the installation and maintenance of bulky servers and other hardware and software in order to access your business phone system.

Teams are able to adopt these Internet-based systems without that hefty investment. That’s through a cloud based solution. However, whether you elect to use a cloud based solution, or an on-premise VoIP solution, you are taking advantage of a virtual phone instead of a traditional phone solution.

A virtual telephone system does not require a traditional telephone line or telephone number, but a connection to the internet. You can share these services with your teammates and be able to handle calls, forward of calls, or join calls, etc.

Cloud based phone system vs on-premise office phone systems

As we briefly mentioned before, there are two kinds of VoIP systems that your team could consider. Cloud phone systems are a type of Internet-based systems that use the latest technology to provide voice communication. All VoIP systems require expensive and intricate servers to operate, which large enterprises will often store on-site.

The cost to maintain, upgrade, and service these servers is fairly significant. They are typically only within the budget for large enterprises. However, if you want to take advantage of an on-premise solution, you can find providers who can help with the installation of the servers as well as give you access to a VoIP system hosted within your own organization.

These on-premise solutions aren’t practical for many teams. These solutions don’t allow for certain sizes or styles of teams to take advantage of them. Think of a team that takes advantage of flexible working all over the globe, who wouldn’t have a location to store the server. Or a business that wants to invest their money in other parts of their business, instead of dedicating a significant portion to an on-premise solution.

Whatever your reason might be, it makes sense that on-premise solutions aren’t the only options available to choose from. That is why VoIP providers will make these systems more accessible by providing a cloud based option.

Cloud phone systems are hosted offsite, meaning that your business won’t have to worry about expensive overhead or maintenance costs that are oftentimes associated with internet phone systems. By utilizing cloud technology, VoIP systems are able to give you access to the most up to date services without burdening your business with hefty infrastructure costs and servers.

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Why should I use a cloud phone system?

The benefits of a cloud based solution can help your team improve your business phone communication, and turn your phone into a valuable tool for your team and your customers. Here are just a few of the most common benefits of using a cloud based phone system.

Cost effective

Cloud phone systems don’t come with unnecessary expenses such as setting up internal traditional PBX. They also can help businesses save an estimated 30-50% on telecommunication expenses when they switch from a traditional phone system. Some VoIP providers offer capabilities across computers, tablets, and mobile devices, meaning you can use devices you already have to access your cloud phone system. This can make it an even more cost effective solution.


With a cloud phone system you can grow your business with ease. Pricing is typically set per user, and users can be added at any time. Your phone system should support your team as you grow, not restrict it. The cloud based nature of these types of VoIP phones make it easy to expand your team as needed.


Given the accessibility across device types, such as computers, tablets, and mobile devices, you can take your cloud phone with you on the go. If you are looking to enable more flexible working then a cloud based system will help you achieve that. You won’t be tied to one physical location as you would be with a traditional PBX or phone system.

Hands-off solution

Having your own PBX system means that any issues that occur have to be handled internally, which can lead to massive workplace disruptions. Cloud based systems have the PBX system hosted external to your business, and your providers will be able to handle any issues if they should occur.

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Where can I access a cloud phone system?

If you are looking to get started with a cloud phone system, then Yodel has the perfect solution for your team. Yodel is a robust business phone system that comes complete with advanced features and endless integration opportunities.

The best part? You don’t need to be a technology expert to take advantage of any of the features or integrations that are offered. Yodel is designed to be an easy to use, and easy to implement solution for teams of all sizes and styles. One of the ways that Yodel is able to offer an easy to use system is through their wide variety of support options. Whether you want to educate yourself through webinars and ebooks, or get guided support through live chats and demo calls.

In terms of mobility and flexibility, Yodel’s system is accessible from mobile devices, tablets, desktop computers, laptops, and even hardware SIP phones. This means that you can take advantage of whatever tools you already have on hand, or help further support your desire to invest in important business technology.

Yodel offers two different plans so that you can find the perfect solution for your team’s budget. Your team can choose from Premium and Premium Plus. The Premium option will cost your team $25/user/month, while the Premium Plus plan will cost $35/user/month. The benefit of Yodel’s pricing is that you are able to pay for the exact number of users that your team needs to be connected to your business phone communication. There is no hefty overhead or other hidden fees, and instead you can easily scale your communication as it makes sense for your team.

One of the key differences between the two pricing plans is the ability to take advantage of advanced integrations and concierge phone support options.

Yodel is proud to offer other advanced features such as business text messaging and voice based IVR to your team regardless of the pricing plan you choose.

Yodel makes it easy to find the perfect phone number for your business. Whether you want to keep your existing phone number, or take advantage of phone numbers from around the globe including toll-free and local area codes, you will find the exact number that makes sense for your business.

Get the most out of your phone communication and turn it into a powerful tool when you connect Yodel to your favorite business applications and software through smart integrations. These integrations range from helping your team keep track of everything within Slack, connect to your favorite CRM tool, and more. Whatever business tool your team is using, it is very likely that there is a way to connect it with Yodel. This will help you easily share information across platforms, streamline workflows, and avoid harmful information silos.

In the end…

Cloud phone systems can be a great solution for your business, and come with amazing benefits. We hope that you have left this article feeling more comfortable with the idea of a cloud phone system, and how it could help your business communication improve.

If you’re looking to get even more out of your cloud phone system, look no further than Yodel. You can get started today by taking advantage of our free trial, where you can test out our features and even get connected to our team through a free live demo call. Get started today, and see why thousands of companies trust Yodel with their phone communication.

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