Cloud Phone Service Explained - Simply!

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25 April, 2018

Confused by VoIP Telephone Terms?

Coud Phone Simplified

It Really is Simple!

Recently a client confessed, he was really confused by all the new Telephone terminology. This is completely understandable. Technology has more specialized terms than the military!

But just remember that phone service has been around for 100+ years. It still does the same thing even if it is called something different.


Different Technology, Same Functions

A Phone Line is the same as the line in our house when we were kids that had 2-3 phones connected. Only one person could use the line at a time, but you could access that line from any phone in the house. The phones were called "Extension phones".

In a business phone system, you have the same idea except it is designed to save money. Having 5 lines and 10 extensions that share those lines saves money vs having a Line for every extension.


Different Terminology, Same Connections

Even though the technology has changed, the basic functionality of phone service is the same. The confusing part is the terminology! Today a "SIP Trunk" is just a "Line". Another term for a line is a "Call Path".


Phones are called "Endpoints" which is just an "Extension". 

The term "Endpoint" is used because you can now use other devices to make phone calls, like a computer or softphone, conferencing speakerphone, fax, security system or even an ATA (Analog Telephone Adapter) to adapt your old phone to work on the internet.


Different Location, Less Hassle

Legacy phone systems have a control unit, known as a PBX or KSU, in the closet and all the phones connect to the control unit. The phones or "Endpoints" share the Lines that are connected to that control unit.

With Cloud phone service, the PBX is located at a server center (the Cloud) instead of a closet in your office and all the Endpoints connect to it over your internet connection.

While the basic concepts are the same as they were 50 years ago, there has a lot of benefit such as flexibility, cost savings and management.


Different Cost, Less Expense

Often the pricing is simpler and more inclusive. A common way to price VoIP service is with unlimited local and long-distance calling. There is usually a cost per Seat or Endpoint that includes all the features and calls. No more lengthy bills with all your long-distance calls listed. Instead, you get a flat-rate price with no monthly fluctuations.


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