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Cloud Phone System Guide:
What Is It & How It Works

Welcome to the Communications Age

Technology is the great accelerator, driving our world forward – faster and faster. In the last 20 years, it has transformed how we think, where we work and what we know. The Information Age? That was so last century.

Welcome to the Communication Age. Success in business means managing relationships— with colleagues, vendors, customers and partners— across the country, around the world and in real time. Collaboration is the new currency. Cloud phone systems are the tools of choice.

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The business VoIP market is expected to grow from $24 billion in 2013 to $35 billion by 2018, an increase of nearly 46%.
- Infonetics, June 16, 2014


What is a Cloud Phone System?

Imagine a powerful communication solution that does everything the most advanced telephone system can do—only much more—without the cost or hassle of on-site equipment. As a software-only solution, a cloud phone system runs on a secure and remote server that is managed by a third-party provider.

The technology that powers a cloud phone system is often referred to as VoIP (voice over internet protocol). Because it’s an IP-based solution, you can combine all your voice, data and video communications on one network and access it with any IP-enabled device.

Small businesses that switch to VoIP reduce the cost of their local calls by up to 40% and international calls by up to 90%.
- Tech.com March 1, 2015


How it works

Think about your company’s traditional phone system. A room full of PBX equipment, handsets tethered to the wall and miles of copper wiring connected to an aging public switched telephone network (PSTN). It’s an analog system in a digital world. A communications dinosaur.

A cloud phone system, however, converts analog voice signals to digital packets so voice traffic runs on the same high-speed network as your existing data and internet traffic. Placing a call is exactly the same as getting on line. And because today’s cloud servers are incredibly fast, highly redundant and use advanced encryption, voice and data traffic are reliable, crystal clear and secure.

Approximately 50% of a voice conversation is silence. VoIP fills the empty silence spaces with data so that the bandwidth in data communication channels is not wasted.
- Cloud Communications Advisor, April 2012


VoIP on the cloud = productivity on the ground

A cloud phone system, a.k.a. VoIP in the cloud, gives even the smallest business the same capabilities previously reserved for large businesses who could afford a powerful on-site PBX. With a full-featured hosted VoIP solution, you can:

  • Increase collaboration with powerful tools like web conferencing, video conferencing, screen sharing and more.
  • Coordinate efforts across your highly mobile workforce: Initiate a video conference on your office desktop, transfer it to your tablet and finish it on your mobile in your car.
  • Work the way that’s best for you: send and receive voicemails as emails, take advantage of voice-to-text, have incoming calls ring to your office phone, home phone and mobile, and more.
  • Integrate your enhanced communication capabilities with your existing CRM and productivity tools to turbocharge sales, management efficiency and overall profitability
  • Scale your communication system instantly, effortlessly and affordably by adding as many phone numbers and virtual extensions as you need without the per line cost.

These are just a few of the many reasons why hosted VoIP solutions are among the fastest growing technologies for business.

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Nobody does cloud VoIP like Mitel

Thinking about a cloud-based phone system? Think Mitel. With more than 2 million cloud seats installed since 2008—over twice as many as the next closest competitor—we’re the world’s fastest growing cloud communications provider. And MiCloud is one of the fastest growing business VoIP solutions.

Powerful and scalable, MiCloud platforms provide the seamless collaboration and smart savings you need to rule the Communication Age. Learn more about the MiCloud family and discover why more than 60 million end-users in over 100 countries rely on Mitel for smarter cloud-driven communications.


Contact a Cloud Communications Specialist