How does cloud phone system work?

How does cloud phone system work

How does cloud phone system work?

How does cloud phone system work is a question asked by many. Cloud phone system or cloud telephony is an innovation that offers the advantage of being able to cut costs significantly, while increasing agility and business performance. If you are still using an aging on-premise PBX system, now is a critical moment for your business to consider adopting a cloud calling solution and the scalability it unlocks. 

Cackle is a New Zealand cloud phone system provider serving NZ businesses of all sizes and in this blog we’ll cover things you need to know about cloud telephony, how it all works and why you should make the leap that your organization need!

How does it work?

Cloud phone system works by converting analogue voice signals into data packets, then transmitting them via the internet. The servers are managed completely off-site by the service provider cutting down upfront investments in telecommunications infrastructure. The deployment and setup are quick and easy, freeing companies from IT overheads and this technology solution completely erases the need for traditional PBX systems, which are typically very costly, and must be managed by the experts of IT or Voice Engineers.

How does cloud phone system work

At the beginning of the process, your business will select a telephony platform such as standard SIP calling, Cisco Webex Calling, or Microsoft Teams Calling which are cloud calling solution offered by Cackle.

This includes the creation, operation, and ongoing maintenance of the service. Through a per seat subscription model, we’d enable your business to have access to a cloud calling solution with the platform of choice. This highly flexible structure promotes business agility by negating cumbersome contracts and unnecessary physical equipment.

While most businesses welcome the opportunity to outsource maintenance efforts, some may still want to keep the option to have direct control. The powerful and flexible nature of cloud technology means that your IT team can still have full control over the system and can still tweak, adjust system settings via an easy to use, online dashboard. This provides the opportunity to have direct influence over call forwarding, numbers, and extensions.

What are the benefits?

How does cloud phone system work

Future proof

Industries across the world are standing on the cusp of significant change, with various emerging technologies set to mature and begin a new era of business. Because of this, organisations require as much room to scale and compete as they can get. Leading cloud phone systems such as Cisco Webex Calling and Microsoft Teams Calling will equip you to add new features and users as required, with an ability to only pay for what you need and use.


With increased innovation and opportunity, security has also become a greater concern than ever for businesses. As threats increase and regulations tighten, VoIP provides Secure Voice and SIP over TCP, keeping calls and other communications within the security of your network. Crucially, cloud phone system enables organizations to give their workforces the benefits of remote and flexible working, without compromising on security.

Cost effective

Cloud based phone system is a solution that alleviates the need to buy expensive equipment and conduct costly maintenance. This benefit compounds if your business operates across multiple sites, as there is no need to buy and maintain duplicate equipment in other locations and countries. Other cost-saving opportunities include lower calling rates on long-distance calls and pay-as-you-go efficiency.


Cloud calling enable users to not only have access to a wide range of features, but also access new ones as they emerge or as they are needed. A prime example of these features is the ability to integrate mobile devices, by running mobile apps and enabling incoming office phone calls to the mobile handsets. This ensures that effective on-the-go communication can be maintained. Other key features include call-forwarding, transfers, efficient three-way calling and many more.


Remote working trends have made it essential that teams are able to make calls via the office phone system from anywhere. Cloud phone provide this important capability that is so conducive to productivity and business continuity. In addition, it also allows employees to securely use instant messenger to share data and communicate, promoting agility and saving time. The inflexibility of landline approaches is becoming a major inhibitor of growth and scale.

The biggest hurdle for many organizations is the disruption they anticipate when transitioning to a cloud telephony solution. Working with us is the best way to make the process smooth and effortless, enabling you to avoid downtime that affects you and your customers.

Have a chat with our solution specialist today and join the journey of migrating from old school telephony that are restrictive and lacks modern features to cloud-based system that delivers enterprise-grade functionalities along with UC capabilities, bringing a solid, reliable and affordable business communication solution.

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