What Is Cloud Communication? A Complete Guide

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The COVID-19 pandemic significantly reshaped the business landscape, mainly through the transition to remote work. This transition was made possible, and even easier, by the rise of cloud communication solutions, which helped employees to collaborate effectively when working from different locations.

Since then, its popularity has continuously grown as businesses witnessed the benefits of flexible and efficient communication tools. Its market size was valued at over $16 billion in 2023 and is expected to reach over $82 billion by 2032.

So, why is it so popular? In this blog, we’ll explore how cloud communication works and its key benefits alongside some of the best providers.


What Is a Cloud-Based Communication System​?

A cloud-based communication system is a telecommunication service in which applications and data storage are hosted by a third-party provider on remote servers, also known as the cloud. This technology allows organizations to manage various means of communication, including voice and messages over the Internet.

How Does Cloud Communication Work?

Cloud communication platforms use VoIP (Voice over Internet Protocol) technology to make and receive calls over the Internet. When you make voice or video calls, firstly, your audio and video signals are converted into digital packets and sent over the Internet to reach their destination. Various components, including routers, switches, and data centers, facilitate this process.

All forms of communications are hosted on the Internet using remote servers. So, as long as you have an internet connection, you can access cloud services from anywhere via a browser or a dedicated application.

Key Components of Cloud Communication

Cloud technology includes key components like VoIP, video calls, security, storage, integration capabilities, and unified messaging for effective functioning. Each plays a unique role within the system.
 

  • VoIP: Unlike traditional phone lines, VoIP lets you make phone and video calls and send messages over the Internet. It transmits data over internet protocols like RTP (Real-time Transport Protocol), ensuring smooth data delivery.
  • Video Conferencing: It is a popular communication method accessible through cloud technology. It adds a visual element to the conference call, enabling multiple participants to see each other during conversations.
  • Storage: With cloud communication solutions, you do not have to worry about losing your conversations, call history, or received/sent files. A cloud communication provider is responsible for backing up all of them. Furthermore, you can access the data from any other device by logging in using your registered ID and password.
  • Security: Since almost all operations are conducted online, files and data are vulnerable to hacks. So, a cloud-based communication system invests heavily in tightening security by implementing end-to-end encryption and firewalls while adhering to company standards such as ISO, GDPR, and HIPAA.
  • Integration: Most cloud communication software comes with integration capabilities, allowing you to integrate your telephony system with existing tools or applications like Slack, Zapier, Zendesk, Salesforce, etc, for effective management.
  • Unified Messaging: One major component of cloud communication is unified messaging. As the name suggests, it allows for texting, calling, faxing, mailing, voice mail, and other forms of communication through a single platform.
📖 You may also read: What is Unified Communication (UC)?

Use Cases of Cloud Communication

Cloud communications mainly help with remote work. Moreover, they are also good for sales and lead generation, business collaboration, and providing customer service and support.
 

  • Remote Work: Cloud communication has transformed remote work by providing an interactive working environment that employees can access effectively from anywhere with an internet connection. 
  • Sales and Lead Generation: Cloud technology plays a vital role in sales and lead generation by enhancing the efficiency of interactions between sales teams and potential customers. It provides a suitable platform for consumers and clients to share valuable information for quick action.
  • Customer Service and Support: Cloud-based call solutions streamline customer inquiries with features like call routing, automated responses, and omnichannel support. These services allow customers to reach support channels faster through phone, chat, or email whenever needed.
  • Business Collaboration: Cloud communication doesn’t require physical presence for collaboration. Features like video calls and group chats make collaboration easy and effective.

Benefits of Using a Cloud-Based Communication Platform for Your Businesses

Cloud communications offer many benefits, from being cost-effective and improving security to providing advanced business communication features.
 

  • Cost Efficiency: Cloud-based solutions eliminate the requirement for expensive on-premises hardware, infrastructure, and maintenance expenses. So, it’s more affordable than a traditional phone system.
  • Scalability: With cloud communication technology, you’re investing in solutions that can scale and adapt according to your business’s evolving requirements. Organizations can add or remove users, raise or decrease capacity, or extend to new users regardless of location. This scalability allows businesses to adapt to fluctuating workloads easily.
  • Flexibility and Mobility: Businesses can run their operations from anywhere, just with an internet connection and a device, like a mobile, laptop, tablet, etc. They can make calls, listen/view voicemail, collaborate with others, and do things they could have done from the office easily. This mobility empowers employees to work efficiently, increasing productivity.
  • Save Time: Alongside saving money, integrating your business into cloud-based communication also saves you time. Everyone can access the tools from anywhere, allowing teams to share files and communicate without being tied to their desks, increasing working speed.
  • Advanced Features: Cloud-based unified communications offer features such as video conferencing, unified callbox, and advanced VoIP telephony that traditional phone systems don’t. These services enable both customers and agents to communicate effectively without disruptions.
     

Get a cloud telephony solution with advanced business phone features at an affordable cost.

Is Cloud Communication Safe for Businesses?

Concern about data security in cloud communication is common, but there is no need to worry. As stated earlier, the cloud communications platform deploys robust security features to safeguard data. These solutions are designed with multi-layer protection that aligns with high-security standards.

One key cloud security component is advanced encryption, which protects data with digital barriers. Sensitive information is encrypted during the storage process and transmission phase to prevent unauthorized access. Moreover, most providers adhere to Industry Standards like SOC 2 and ISO 27001, as well as regional regulations like HIPAA and GDPR, to enhance the security posture of cloud solutions. Therefore, any business can freely switch to cloud-based platforms without compromising their security.

5 Best Cloud Communication Providers

Calilio

Calilio is a top cloud telephony provider offering virtual phone numbers from more than 100 countries. As call center software, it is a business communication solution for all industries, including health, insurance, hotels, real estate, restaurants, tech companies, manufacturing, and dental, regardless of size.

a screenshot of the Calilio app on a phone and a computer, showing an active call in progress.

 

Pricing (per user/month)

Key Features

  • Basic Plan at $15
  • Business Plan at $35
  • Enterprise Plan (Custom)
  • AI-Powered Call Analysis (Sentiment analysis, reasons to call, and call conclusion)
  • Interactive Voice Response
  • Auto Record Calls and Transcriptions

OpenPhone

OpenPhone aims to build a phone of the future with a primary objective to help establish a strong relationship between businesses and customers. The company mainly prioritizes startups and small businesses, focusing on sectors such as education, real estate, and professional services.

a screenshot of the OpenPhone app on a phone and a laptop, showing active conversations.

 

Pricing (per user/month)

Key Features

  • Starter plan at $19
  • Business plan at $33
  • Enterprise plan (Custom)
  • Salesforce Call Tracking
  • Slack VoIP Integration
  • HubSpot Phone Integrations

Dialpad

Dialpad’s cloud communication software is available through different packages: Dialpad Connect, Dialpad Meetings, Dialpad Support, and Dialpad Sell. Each has its respective plans, prices, and features. Dialpad Connect is an all-in-one consumer communication platform, Dialpad Support is a cloud-based support and contact center solution, and Dialpad Sell is a cloud-based sales outreach solution.

a screenshot of the Dialpad app on a phone and a computer, showing an active call in progress.

 

Pricing (per user/month)

Key Features

  • Standard plan at $27
  • Pro plan at $35
  • Enterprise plan (Custom)
  • Contact Center Integrations
  • Real-time QA Scorecards, Powered by Dialpad Ai
  • Customer Satisfaction (CSAT) Survey

Nextiva

Nextiva is a popular unified customer experience management platform. The company’s goals revolve around retaining, acquiring, and growing clients for its users. For this, it provides detailed insights into interactions to understand customer behavior and provide personalized services accordingly.

a screenshot of the Nextiva app on a phone and a computer, showing an active chat window.

 

Pricing (per user/month)

Key Features

  • Digital plan at $25
  • Core plan at $36
  • Engage plan at $50
  • Power Suite plan at $75
  • SIP Trunking
  • VoIP Switchboard
  • Hosting PBX Phone System

Vonage

Vonage’s cloud phone service comes alongside other communication channels like live texting, SMS, and emails. It offers a unified communication system for reaching and engaging with consumers across video, messaging, and voice.

a screenshot of the Vonage app on a phone and a computer, showing an active call in progress.

 

Pricing (per month/line)

Key Features

  • Mobile plan at $19.99
  • Premium plan at $29.99
  • Advanced plan at $39.99
  • VoIP Cell Phone Integration
  • Virtual Receptionist, Mailbox, and Phone Extensions
  • Multi-Line Business Phone System

Wrapping Up

By adopting cloud communication solutions, businesses can save more time, reduce costs, and position themselves for sustained growth in the evolving digital landscape. Cloud communication is also better than traditional communication in terms of security, storage, and third-party integration.

With the growing demand, you’ll find numerous cloud telephony providers in the market. While most are expensive, consider Calilio for an affordable option with advanced features like AI-powered call summaries, sentiment analysis, and more starting at just $15 monthly.

Frequently Asked Questions

What types of businesses can benefit from cloud communication?

Any type of business, whether they are engaged in education, trade, healthcare, or the hotel industry, regardless of their size, can benefit from cloud communication.

How do I choose the right cloud communication provider?

Choosing the right cloud communication provider involves careful consideration of various factors, including service reliability, security measures, customer support, scalability, and cost structure.

Are cloud communications secure?

Yes, cloud communications are secure as most providers implement robust security protocols, like encryption and strong authentication, and offer regular security updates to protect user information.


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