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Dialling up the Future

Why choose cloud telephony over VoIP? It is more than just a fancier suit; it is a game-changer for scalable, seamless, and hardware-free communication.

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Voice&Data Bureau
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Cloud was once a novelty. Then, it became a paradigm, a way of doing IT—like we never knew how we worked without it—ever. And then, it became a prefix, underlining everything with its signature of flexibility, any-time availability, and modularity. It was only a matter of time before this prefix adorned the world of telephony.

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Adding Cloud means saying goodbye to traditional phone systems. All the physical infrastructure, such as phone lines and hardware, can be stripped off and replaced by systems operating through a virtual phone system hosted in the cloud by a third-party provider. This entails switching off public switched telephone network (PSTN) and integrated services digital network (ISDN) systems and embracing the new levels of scalability, subscription-based, and hardware-free models that Cloud Telephony brings.

As per Future Market Insights, the cloud telephony market revenue was USD 22.8 billion in 2023 and can rise to USD 57.6 billion by 2033. Many advantages have been assessed here, like storage space, flexibility, scalability, 24/7 availability, the ability to work on multiple networks, Voice over Internet Protocol (VoIP) phone systems, and PSTNs.

No wonder we are witnessing much action stirring up in this firmament.

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High-Decibel Growth

Zoom Video Communications has recently announced the launch of Zoom Phone in India, commencing with the availability of Zoom Phone service with native India phone numbers in Pune under the Maharashtra Telecom Circle. The company explained that Zoom Phone provides local telephony services and is available as an add-on to Zoom’s existing paid customers. With support for inbound and outbound calling through the PSTN, enterprise customers can seamlessly replace their existing PBX solution and consolidate their business communication requirements into one platform.

Consider Vi. The company recently set up a virtual call centre for a state civic body managing government hospitals with its Cloud Telephony solution. It provides a toll-free number with Interactive Voice Response (IVR) to automatically direct patients to the correct department. As the company claims, the solution helped the civic body efficiently handle and organise its increasing volume of calls, adding that patients and family members could quickly access the information they needed. Also, big names like BT are taking stock of what is new and what is a cart set towards sunset. BT announced the end-of-life or ISDN lines by 31 January 2027, commonly referred to as the BT ISDN switch-off.

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“Cloud Telephony enables greater mobility as users can access it from multiple systems and devices without the restriction of a specific device, as with VoIP.”- DEVROOP DHAR, Founder, Primus Partners

This new basket also includes AI Companion capabilities, like those seen in Zoom phones. As claimed at the launch, users can request post-call summaries and next steps to focus on conversations instead of taking notes. This includes voicemail prioritisation and voicemail task extraction. Also, with the heightened use of remote work and hybrid workplaces, Cloud Telephony is the perfect solution for the new-age jigsaw.

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Is it, especially when VoIP exists? Turns out—kind

of, yes.

A Muted VoIP?

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Devroop Dhar, Founder of Primus Partners, spells out how Cloud Telephony and VoIP fundamentally use the Internet for voice communication but also have multiple differences. “Cloud Telephony, as the name suggests, operates entirely on the cloud. This enables it to function at a very optimal cost and without adding any hardware. VoIP can work either through an on-premise data centre or through the Cloud. It may also require additional hardware to be installed for functioning. Usage and maintenance is much simpler in the case of Cloud Telephony than traditional VoIP systems.”

VoIP, which converts voice signals into digital data packets transmitted over the Internet and changes them back to voice signals, may still need to install some hardware. Scalability or expansion to more devices and maintenance expenses can be an issue, which is not true with Cloud Telephony as it does not require on-site hardware. If VoIP entails some form of landline, these problems can become more acute, and remote work possibilities can be stunted.

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“Cloud Telephony offers a centralised web-based interface for managing the phone system, enabling seamless integration with mobile devices and remote access.”- TITUS M, Practice Director, Everest Group

Titus M, Practice Director at the Everest Group, explains that Cloud Telephony is one use case of VoIP, where voice services are delivered from hybrid and Cloud environments. In contrast, the traditional VoIP services are delivered from on-premise infrastructure. “Thus, Cloud Telephony eliminates infrastructure-related hassles and simplifies maintenance and customisation. It offers a centralised web-based interface for managing the entire phone system and enables seamless integration with mobile devices and remote access.”

Sameer Raje, General Manager and Head of India and SAARC at Zoom Video Communications, avers that Cloud Telephony and VoIP both enable Internet-based calling but adds that they differ in scope and infrastructure.

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“VoIP specifically refers to the technology that allows voice calls over the Internet, typically used for person-to-person communication through apps. On the other hand, Cloud Telephony is a broader solution that integrates telephony features, such as call routing, IVR, and call analytics, hosted entirely on the cloud. In the Indian context, Cloud Telephony is especially valuable for businesses looking to streamline customer service and sales without investing heavily in traditional PBX systems or hardware.”

Due to its cloud-based delivery, Cloud Telephony offers various advantages, including scalability and flexibility based on the requirements of the businesses, for Titus reasons. “It comes at lower costs as it has lower capex and typically involves only a monthly subscription fee with no hidden charges. This has easier maintenance and helps decode and resolve issues quickly. It also offers a centralised web-based interface for managing the entire phone system and enables seamless integration with mobile devices and remote access.”

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Dhar avers that Cloud Telephony offers significant cost savings as it does not require investment in hardware or on-premise data centres. “It is easy to install, maintain, and use. It offers better scalability than other telecom options, as adding and deleting users is easy and simple and does not require any new hardware. It also enables greater mobility as users can access it from multiple systems and devices without the restriction of having to access the phone from a specific device, as is the case with VoIP at times.”

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“Using Cloud Telephony, enterprises can seamlessly replace their PBX solution and consolidate their business communication requirements into one platform.”- SAMEER RAJE, GM & Head, India & SAARC, Zoom Video Communications

Raje highlights how enterprise customers can seamlessly replace their PBX solution and consolidate their business communication requirements into one platform with support for inbound and outbound calling through the PSTN.

However, Future Market Insights noted that customer behaviour and concern over data privacy and security restrain the market’s growth. The market declines as big corporations set up private networks to restrain the demand for Cloud Telephony services. Data breaches, security risks—especially of sensitive data—and high subscription costs can be other barriers to the rise of Cloud Telephony.

Titus also cautions that while Cloud Telephony is more suitable for businesses with a distributed workforce and those that need remote access, it is not very suitable for industries with strict regulations, businesses with weak Internet connectivity and a higher number of legacy systems.

Although it offers several advantages over on-premise and traditional VoIP, it also has potential disadvantages, such as security and data privacy concerns, vendor lock-in, and regulatory and compliance challenges, he adds. “An enterprise should thoroughly evaluate its requirements and make an informed decision on which system to leverage.”

All in all, Cloud Telephony sounds great, as long as it is not cloudy telephony.

By Pratima Harigunani

pratimah@cybermedia.co.in

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