---
title: Understanding Cloud-based Phone System and its benefits for your business
description: A cloud phone system (also known as a cloud PBX, hosted PBX, or hosted phone system) is a VoIP phone system that can be accessed via a cloud-based IP network.
image: https://pages.boileau.com.au/hubfs/boileau%20business%20communications%20cloud%20based%20phone%20system%202.jpg
---

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# Boileau Business Technology Blog

## [Understanding Cloud-based Phone System and its benefits for your business](https://pages.boileau.com.au/blog/understanding-cloud-based-phone-system-and-its-benefits-for-your-business)

 20/09/2022 3:32:21 PM / by [Jennie](https://pages.boileau.com.au/blog/author/jennie)

 

![boileau business communications cloud based phone system](https://pages.boileau.com.au/hs-fs/hubfs/boileau%20business%20communications%20cloud%20based%20phone%20system.jpg?width=711&name=boileau%20business%20communications%20cloud%20based%20phone%20system.jpg)Today's businesses are growing faster thanks to the more flexible and cost-effective cloud-based technology. Business communications, a crucial element of any organisation, is also a part of this as well. 

### **What is a Cloud-based Phone System?**

A cloud phone system (also known as a cloud PBX, hosted PBX, or hosted phone system) is a VoIP phone system that can be accessed via a cloud-based IP network.  Being completely online and delivered via the Internet, a cloud phone system reduces initial investments in telecommunications infrastructure. With a quick and simple process for deployment, businesses can save more on their IT overhead costs by purchasing a subscription-based cloud phone services from a trustworthy service provider. 

### **How does a Cloud-based Phone system work?**

**![boileau business communications how cloud based phone system works-1](https://pages.boileau.com.au/hs-fs/hubfs/boileau%20business%20communications%20how%20cloud%20based%20phone%20system%20works-1.jpg?width=678&name=boileau%20business%20communications%20how%20cloud%20based%20phone%20system%20works-1.jpg)**

Cloud telephony operates through a [VoIP service provider](https://en.wikipedia.org/wiki/Voice_over_IP). Your service provider handles the routing when you call the desired number. The analogue voice signals are transformed into data packets and sent over your internet connection. This establishes the call connection between your phone and the person you're calling.  
On your end, a VoIP desk phone would take the place of individual phone extensions. You plug your phones into your existing network rather than a landline. A softphone, which is an application downloaded to your computer, tablet, or smartphone, is another option. In both situations, you make the call from a user-friendly interface, making the process quick and simple.

### **The benefits of a Cloud Phone System**

### 1. Flexibility and Availability

The flexibility of a cloud phone system's multi-device configuration allows multiple devices to ring at the same time, making you reachable even when you're not in the office. In addition, cloud telephone applications let your employees work anywhere while still being able to accept call transfers from the office. 

### 2. Reduce Operational Costs 

A cloud phone system is a cost-effective choice because it significantly lowers the initial outlay for equipment and ongoing maintenance expenses. Why are the costs considerably lower?

Since  cloud phone systems only require an internet connection, as opposed to traditional phone lines that require costs like:

- Upfront expenditure for an on-site PBX.  
- Ongoing maintenance expenses.  
- Add-ons for features like call queuing, voicemail transcription, and auto attendants, among others.

### 3. Scalability

The ability to scale effectively is one of the main benefits of using a cloud phone system. Starting with a two-handset cloud system, you can scale it up as your company expands. This guarantees you only pay for your true business needs and allows you to increase more as necessary. Likewise, you can also reduce the capacity due to your needs . A cloud-based phone system works in direct proportion to how much you pay every month for your phone service.

### 4. Multi-site Flexibility

Headquarters, branch offices, and teleworkers can all benefit from the same features and business continuity with a cloud phone system. This will allow you to go beyond geographical constraints. Calls can be transferred from Adelaide to Melbourne to Perth in seconds using internal extensions and there is no hidden charge for the transfer. How awesome is that? With free calls between all of their locations, multi-site offices companies can save costs significantly.

### 5. Unified communications

A multitude of communication channels and options can be brought together into a single point of access as part of unified communications via a cloud phone system.  A cloud-based phone system speeds up employee onboarding and improves the efficiency of meetings. You get to be in control, and it eliminates the barriers and that came with earlier communication systems.

Explore Boileau's Unified Business Communications solutions further [here](https://boileau.com.au/business-communications/) or reach out to our sales team to start finding the RIGHT solutions for your business: [Contact Us](https://boileau.com.au/contact/)

 

 Tags: [Organisational strategy](https://pages.boileau.com.au/blog/topic/organisational-strategy), [Digital transformation](https://pages.boileau.com.au/blog/topic/digital-transformation)

![Jennie](https://pages.boileau.com.au/hubfs/1704194078703.jfif)

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