Top 7 Business Benefits of Cloud Telephony

Paras Kela

Senior Writer

Cloud Telephony And Its Future In India

Modern businesses require solutions to survive and thrive in today’s highly competitive business world. Along with quality products, they must provide timely and exceptional customer support and service to their domestic or international clients. One such technology that helps achieve this goal to a large extent is known as cloud telephony.

But what is cloud-based telephony, how does it work, and what advantages make it one of the most promising and important business communication technologies? And, most importantly, what is the future of cloud telephony in India?

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To find answers to these questions, read this blog to the end.

What is Cloud Telephony? Hot it’s Works.

Cloud telephony is a phone service that allows you to make calls over the Internet. Also, in contrast to the traditional phone system, which uses analog signals to transfer data, cloud telephony service converts analog signals into data packets. Then, it transmits them over the internet to the receiver. 

This will eventually reduce infrastructure costs because companies will not need to install any on-premise hardware other than IP phones and a stable internet connection.

How Cloud Telephony Works

Other factors that contribute to cloud telephony business being a preferred communication system for companies and guarantee its bright future are as follows:

  • An integrated business communication system
  • A variety of novel features
  • Exceptional portability
  • Reliable and secure data transmission
  • Simple to customize according to business needs
  • Enhanced voice quality without disturbance or delay
  • Zero to minimum installation and maintenance cost
  • On-demand scalability

All of these elements of cloud-based phone systems contribute to their growing popularity. Let’s take a quick look at each aspect before we discuss the future of cloud telephony in India.

7 Benefits of Cloud Telephony for Your Business

The following are some of the key advantages of cloud-based telephony for businesses. From cost savings to improved customer satisfaction, cloud-based telephony systems enhance efficiency in several ways.

1. Cost-Effective Solution

One of the ultimate goals of any organization is to keep operational costs as low as possible. By investing in a cloud telephony service, companies can significantly reduce communication costs. Since this solution is primarily managed by cloud telephony companies, organizations do not have to worry about installation or maintenance costs.

Besides that, compared to traditional phone systems, the cost of international calling in a cloud telephony system is substantially lower. Also, since the system is cloud-based, there is no need to rent a space for on-premise installations. These factors combine to make cloud-based telephony a cost-effective business communication solution.

2. Enhanced Call Quality

The next major advantage of cloud telephony users enjoy is improved, clear call quality. Since this technology transmits data over the internet, there is little to no chance of disruption or lagging. Besides, unlike traditional phone systems that use cables, cloud-based phone systems use the Internet– which lowers the chances of network disruption by factors such as natural calamities.

Advantages of cloud telephony service

This not only ensures higher uptime but also that the data sent to the receiver will be the same as the data sent by the sender. Also, the message reaches the receiver in a discrete and clear quality, discarding the possibility of miscommunication. Overall, improved voice quality enhances both the client and operator experience.

3. Range of Innovative Features & Functionalities

Since cloud telephony systems are designed for enterprises, they encompass a variety of features that aim to improve business communication. Some key features that most cloud telephony service providers offer are Interactive Voice Response (IVR), call recording, Automatic Call Distribution (ACD), call forwarding, power dialer, video conference, call queuing, and call transfer.

All of these features and functionalities contribute to making the system a comprehensive solution. Leveraging these features, companies can streamline, automate, and accelerate their customer service or marketing campaigns.

Furthermore, the analytics provided by this system enable them to understand their strengths and weaknesses and steer the strategy in the right direction.

4. 24*7 Accessibility & Mobility

Accessibility is one of the major limitations of traditional phone systems. Users cannot access the system outside the office or premise where it was installed. This will eventually result in either limited service hours or necessitate more employees to manage the customer calls. However, businesses can significantly overcome this limitation by investing in cloud telephony services.

Users can even access this business communication system outside the office or anywhere. Most of these cloud telephony service providers offer mobile applications you can use while on the go. In addition, these systems include a feature that allows you to redirect calls to your personal number if calls to the office number are not received.

5. On-demand Scalability

Cloud telephony being a SaaS (Software-as-a-Service) solution, allows you to scale your services as and when required. This means you are not required to go full-fledged or purchase a premium plan at the very beginning.

Instead, you can begin with the basic package and upgrade your plan as your business grows and you require more resources. This will result in significant savings on subscription costs.

Similarly, during the off-season or recession, you can reduce resources and services to save on subscription costs. Besides that, scaling up or scaling down resources will be simple and take less than a day, unlike traditional phone systems that require weeks to install cables and other frameworks.

6. Reliability & Security

Another advantage of cloud telephony is data security. Compared to on-premise telephony or traditional phone systems, data transmitted over the internet or stored in the cloud is highly secure. Besides, most cloud telephony service providers employ advanced security protocols, encryption methods, and cutting-edge security practices to ensure there are no chances of a system breach.

How end-to-end encryption in cloud telephony works?

Even if a hacker gains access to the system, they will be unable to read messages or listen in on calls because they are end-to-end encrypted (E2EE). The message will be decrypted only at the receiver end. All of these security standards will ultimately ensure data reliability and security.

7. Improved Customer Service

All of the above-mentioned six benefits will eventually improve customer service levels. For example, clear voice quality improves customer experience, while high system security increases customers’ trust in your company.

Similarly, cloud telephony’s on-demand scalability will allow you to meet fluctuating customer influx, whereas portability will allow you to serve your customers 24*7.

Besides, rich data analytics will enable you to learn more about your customers, such as what they like and dislike. Eventually, you can use these insights to make your campaign better and more effective, improving customer experience and generating more revenue.

These primary advantages make cloud telephony service a preferred communication solution for domestic and international businesses. 

Now, keeping these benefits in mind, it will be easy for you to better understand the future of cloud telephony in India.

Cloud Telephony: Shaping the Future of Communication in India

India has the world’s third-largest unicorn population, with over 100 unicorns worth $332.7 billion. Moreover, according to Statista, nearly 141 million Indians work in the service sector. Also, the BPO (Business Process Outsourcing) industry in India is the fastest-growing ITES (Information Technology Enabled Services) industry segment. 

All of these statistics indicate that cloud telephony systems indeed have a promising future in India.

Some of the major factors that will contribute to the growth of cloud telephony in India are as follows. Let’s take a look at them one by one.

A. The Rise of the Hybrid Work Model

Following the COVID-19 pandemic, a large number of businesses are adopting a hybrid workplace model or a permanent work-from-home model. These working models necessitate a set of remote working tools and technologies that support them to conduct business in the same manner as the in-office working model.

One such tool that most of these businesses will require is a cloud telephony system. As previously stated, this enterprise communication technology will give businesses various advantages, such as multiple communication channels, portability, scalability, and more. 

Hybrid working model statistics 2022

Also, companies will not be required to set up infrastructure at each individual’s place. Rather, employees can gain access to the service by logging into the cloud telephony service provider platform.

In addition, in the event of any technical issue, cloud telephony companies will manage the service and maintenance, lowering the need for on-site infrastructure and IT efforts on the part of the organization.

Besides, the cloud-based telephony will create a centralized communication system for all, allowing agents to access the necessary documents or data easily.

Additionally, cloud telephony solutions will give employees more freedom and flexibility. Employees will not have to remain tied to the desk at all times. Instead, they can attend calls from anywhere. This will eventually enable them to balance their professional and personal lives better.

B. Expanding Indian Startup Ecosystem

Cloud telephony can potentially be a valuable asset to the Indian startup ecosystem. This business communication solution can certainly assist this growing sector in reaching global customers at affordable rates, establishing a well-designed communication channel for internal as well as external communication, and improving customer satisfaction and revenue by leveraging the system’s advanced functions and features.

Moreover, because these startups are newer to the industry than established companies, they require extensive data on their customers in order to improve call center key KPIs and metrics. This is where a cloud-based telephony system can come in handy. Leveraging cloud telephony services, startups can gain valuable insights and make data-driven decisions.

Besides that, the advanced features provided by most cloud telephony service providers will enable startups to improve customer experience. For example, you can certainly advertise your offerings through personalized messages during the wait time, route calls to the appropriate individual or department, and reduce call waiting time using IVR.

Furthermore, by utilizing cloud telephony software, startups can save time, effort, and money, increase lead conversions, and ensure secure data transmission. These advantages indicate that cloud-based telephony is an ideal customer communication solution for startups.

C. Increased Emphasis on Customer Service

Companies in the 21st century, particularly in the last decade, have begun to focus more on or give equal attention to customer support as they do to product quality.

This is because customers today are more aware of their rights and expect quality customer service. It is not an exaggeration to say that customer service has, in fact, become one of the most important factors in consumers’ purchasing decisions.

FinanceOnline’s 2022 survey on customer service also reflects this evolving consumer mindset in the 21st century. According to the survey, 33 out of 100 customers expect a friendly and knowledgeable agent, and 32 out of 100 customers want their issue resolved on the first call or in a single transaction. Also, 72% of customers expect agents to know about their previous engagements.

Key Customer Service Statistics 2022

With such high customer expectations, companies must invest in cutting–edge communication technologies such as cloud telephony. Moreover, customers also expect companies to have their presence across leading social media platforms such as Facebook, Instagram, and Twitter.

Meeting these customer expectations has become critical because it directly impacts business. Fulfilling these diverse customer demands will help you improve the customer experience, build long-term relationships with customers, and increase revenue. In contrast, failure to do so will severely harm your company and its reputation.

D. Globalization of Indian Companies

Thanks to the technological and structural advancements, as well as the country’s skilled workforce, an increasing number of Indian startups and businesses are going global and competing with foreign companies.

Other factors driving Indian companies to go global include increased revenue potential in the global market, an untapped and massive customer base, easier access to talent, and so on.

In fact, according to a recent survey conducted by TurningIdeas Ventures, 42 out of 100 Indian startups plan to go global and enter the international market in 2022! The same survey concludes that 64% of these startups are in the enterprise SaaS space, just like cloud telephony service providers.

However, going global and entering the international market is not easy due to fierce competition from global companies across the world, each with advanced technological infrastructure and a highly talented workforce.

This means that Indian companies will also have to invest in cutting-edge technologies such as cloud telephony, performance and productivity tools, human capital management (HCM), document management tools, and others.

E. The Growing Importance of Data Analytics

Data analytics is critical for companies as it allows them to make more informed, data-driven decisions while providing valuable insights into key business areas such as customer behavior, market trends, product growth, and more. For this reason, demand for technologies and tools that facilitate data analytics will increase in the coming years.

Cloud telephony analytics

AI-powered cloud telephony software also provides detailed analytics on customers’ problems and preferences, such as preferred product features, preferred price range, most common complaint type, most complained product, and more. By leveraging these insights, companies can strategize or fine-tune their production or marketing campaigns to boost sales and revenue. 

Besides, data will also allow customer service teams to modify their customer approach to improve customer satisfaction. Overall, data analytics will be another important reason businesses will invest in cloud-based telephony systems in the future.


The future of cloud telephony in India is bright and beaming, not only because of the benefits this communication solution provides but also because of the various factors that will fuel its growth in the future.

However, ensure that the cloud telephony solution you select has all the features necessary to meet your business’s requirements and goals. Above all, it is critical that you select the right cloud telephony service provider to ensure that your money is invested rather than wasted.

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