Cloud-based Voice over Internet Protocol (VoIP) is Internet-based communication enabled by software applications which are hosted outside of the organization either remotely by the organization or by a third party.
Cloud or hosted services is a broad term, referring primarily to data-center-hosted services that are accessed and operated over an Internet infrastructure – either private or public.
Until recently, cloud services were primarily data-centric, but with the evolution of VoIP and Session Initiation Protocol (SIP), voice has become a significant part of the cloud phenomenon. The cloud communications environment serves as a platform upon which all mediums – voice, data and video – can seamlessly integrate and work well together.
Cloud communication is attractive to businesses because it can cut costs yet increase available features. Companies like Sprint, Verizon, Google and Toshiba have demonstrated that a cloud-based communications platform can be just as effective as a premises-based platform, but at a much lower cost.