Most businesses would agree that traditional phone systems can be restrictive and expensive.
Migrating to a cloud-based phone service offers an affordable and flexible alternative tailored for small to medium businesses.
In this article, we will demystify cloud phone services - explaining how they work, key features and tools, provider options, implementation steps, and most importantly, the benefits for your business.
Introduction to Cloud-Based Phone Services
Cloud-based phone services, also known as Voice over IP (VoIP), are phone systems that utilize the internet and cloud technology to make and receive calls. Key benefits of cloud-based phone services include:
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Cost Savings: Cloud-based systems eliminate the need for expensive on-premise PBX hardware. Monthly subscriptions are often cheaper than traditional phone lines.
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Flexibility: Users can make and receive calls from anywhere with an internet connection using their computers or mobile devices. Systems are easily scalable to support business growth.
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Productivity Features: Features like call forwarding, auto-attendant menus, voicemail transcriptions, and CRM integrations help businesses improve operations and efficiency.
Cloud phone services work by converting voice data into digital packets that are transmitted over the internet, leveraging cloud servers instead of on-site hardware. The cloud provider maintains all hardware and software offsite.
To use a cloud business phone system, you simply need phones or softphones, an internet connection, and a subscription to a provider like Dialzara. The system seamlessly integrates with your existing business apps and allows remote management via desktop or mobile.
What is a cloud-based phone service?
Cloud-based phone systems use Voice over Internet Protocol (VoIP) technology to connect phone calls. What it doesn't use is legacy technology like analog telephone lines or any on-premises hardware. All you need is a high-speed internet connection.
Key Features
- No on-site hardware required - The system runs in the cloud so there is no PBX hardware to maintain or upgrade.
- Flexible scalability - Cloud systems scale up or down easily as your business needs change.
- Lower costs - No hardware to buy means lower upfront costs, and VoIP calls are cheaper than traditional calls.
- Advanced features - Get the latest call features without costly hardware upgrades.
- Reliability - Leading providers have robust redundancy to minimize downtime risks.
How It Works
Cloud phone systems rely on VoIP technology to convert voice data into packets and transmit calls over the internet, rather than the analog signal transmission used by landlines. The core system components are hosted in remote data centers operated by the VoIP provider.
To use a cloud phone system, you simply need phones or softphones connected to a high-speed internet connection. The system works seamlessly with analog phones and can integrate with CRM software, helping centralize your business communications.
With no on-site hardware to maintain, cloud systems offer a convenient and flexible approach to upgrading your phone system affordably. Leading solutions provide the reliability of an enterprise-grade system with the simplicity of a cloud delivery model.
What is the difference between VoIP and cloud-based phone?
VoIP (Voice over Internet Protocol) refers to making and receiving phone calls over the internet, rather than traditional analog phone lines. Cloud-based phone systems are a type of VoIP system that are hosted in the cloud.
The main differences between generic VoIP and cloud-based VoIP systems are:
- Location of hardware - With basic VoIP, all hardware is on-premises. Cloud-based VoIP systems have all hardware hosted offsite by the provider.
- Maintenance - With on-premises VoIP, the business must maintain all hardware. Cloud-based systems are maintained by the provider.
- Scalability - Cloud-based systems are highly scalable, allowing businesses to easily add lines and features. On-premises systems require manual upgrades.
- Accessibility - Cloud systems can be accessed anywhere with an internet connection. On-premises hardware can only be accessed from the office.
The "cloud" refers to the offsite servers and infrastructure that hosts a cloud-based phone system. So cloud-based VoIP utilizes the cloud to deliver phone service, while basic VoIP relies on on-site hardware.
There is little difference between a cloud phone service and a hosted VoIP system - cloud is essentially an extension of hosted VoIP. With both, the VoIP provider owns and maintains all hardware offsite rather than the business owning an on-premises system.
Are cloud-based phone systems reliable?
Cloud-based phone systems are very reliable, as long as you have a stable internet connection. Here's why:
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The system is hosted in the cloud, so there is no physical hardware that can fail on your premises. The servers are located in highly secure and redundant data centers with multiple backup power sources.
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Leading providers like Dialzara use enterprise-grade networking hardware and software to ensure maximum uptime and reliability. They guarantee 99.999% uptime in their SLAs.
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If your internet goes down for any reason, intelligent call routing features like advanced call forwarding kick in automatically to route calls to cell phones or other numbers. You can still receive calls without interruption.
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With a web-based dashboard, you can log in from anywhere with internet access to monitor and manage your phone system. You're not dependent on any hardware or software installed locally.
So in summary, cloud-based systems are extremely reliable thanks to their distributed architecture across multiple data centers. And even if your internet drops, smart call routing ensures you'll remain reachable on cell phones without missing any calls. Just make sure you have a stable wired broadband connection for your business.
What is a cloud mobile phone?
A cloud mobile phone refers to a mobile device that relies on cloud computing technology to deliver key phone functionality. Rather than having advanced processing power and storage on the device itself, many core functions are handled remotely in the cloud.
Here are some key things to know about cloud mobile phones:
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They contain basic hardware like a screen, battery, and modem to connect to cell networks. But the "brains" of the phone - the operating system and applications - run in the cloud.
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This allows the physical phone to be very low-cost, as demanding computing tasks don't happen on the device. It's essentially a thin client for accessing cloud services.
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Cloud phones provide access to a range of telephony features like calling, texting, voicemail, on a pay-as-you-go basis. There's no need for a long-term contract.
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They can deliver a full smartphone experience by streaming an Android OS from the cloud. This allows using apps and features as if the phone had a powerful processor inside.
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Edge computing resources are often used to reduce latency when streaming a cloud OS to the device. This places micro cloud servers geographically closer to the user.
In summary, cloud mobile phones are basic devices that act as a conduit for accessing a virtualized smartphone experience from the cloud. This allows mobility at a fraction of the cost of a premium device.
Understanding Cloud-Based Phone Services for Small Businesses
Cloud-based phone services, also known as Voice over IP (VoIP), utilize the internet to make and receive phone calls rather than traditional landlines. For small businesses, shifting to a cloud-based system comes with many potential benefits.
Defining VoIP and Cloud Phone Systems
VoIP stands for Voice over Internet Protocol. It is a technology that allows users to make and receive phone calls over the internet rather than using a traditional landline.
Cloud-based phone systems are a type of VoIP system where the phone service is hosted on remote servers and accessed over the internet. This removes the need for on-premise phone hardware.
Key features of cloud-based systems include:
- Virtual phone numbers
- Advanced call routing
- Integrations with business software
- Scalability
Assessing the Best Cloud-Based Phone Service Options
When researching providers, key aspects to evaluate include:
- Cost: Cloud systems are typically cheaper than traditional landlines. Compare monthly fees and hardware costs across providers.
- Features: Assess features like auto-attendants, call recording, conferencing, SMS, etc.
- Reliability: Check reviews and uptime guarantees for insight into reliability.
- Scalability: Ensure the service can expand as your business grows.
- Ease of use: The system should be intuitive and easy to manage.
Leading providers known for strong feature sets and reliability include Nextiva, RingCentral, Grasshopper, Dialpad, and Ooma Office.
Cloud-Based Phone System vs VoIP: Understanding the Differences
While VoIP is the technology behind cloud-based phone services, there are some differences:
- Location: Cloud systems are hosted remotely while VoIP can be hosted onsite.
- Hardware: Cloud systems have no onsite hardware while VoIP may require an on-premise private branch exchange (PBX).
- Management: Cloud systems are typically easier to scale and manage.
Acquiring a Cloud-Based Phone Number for Business Identity
A key advantage of cloud phone services is the ability to acquire phone numbers in desired area codes to establish a local presence. Numbers can be purchased through providers once an account is set up. Virtual phone numbers help project professionalism and enable personalized greetings and routing options.
Cloud vs On-Premises Phone Systems
Cloud-based phone systems offer several key advantages compared to traditional on-premises PBX systems for small and medium sized businesses.
Upfront and Ongoing Costs
Cloud phone services require little to no upfront investment in hardware. Rather than purchasing a PBX system, businesses simply pay a low monthly fee per user. With no maintenance or upgrade costs, this results in predictable operating expenses.
On-premises PBX systems require significant upfront investments in hardware and software licenses. Maintenance, repairs and upgrading equipment over time also leads to unpredictable and often high ongoing costs.
Ease of Scaling
Cloud systems make adding lines and features easy, allowing businesses to scale up or down on-demand. Adding a new office simply requires purchasing additional licensed seats from the provider.
With on-premises PBX, scaling capacity requires purchasing additional hardware upfront. This leads to overprovisioning capacity from the start, increasing costs.
Reliability and Uptime
Leading cloud providers offer 99.999% uptime with geo-redundant data centers and automatic failover. This leads to higher reliability than on-premises systems prone to power and equipment failures.
Hosted PBX: A Cloud-Based Alternative
Hosted PBX delivers PBX features without any on-site hardware to manage. The service provider hosts the PBX system, delivering calling, voicemail, auto attendants and more over the internet. This makes hosted PBX a flexible cloud-based solution for SMBs.
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Key Features and Tools of Cloud-Based Phone Systems
Cloud-based phone systems provide businesses with a wide range of features and tools to improve communication, collaboration, and customer experience.
Auto-Attendants and Intelligent Call Routing
Auto-attendants are automated receptionists that answer and route incoming calls based on rules you set up. They can greet callers with a custom message, offer dial-by-name directories, route calls to the right departments or staff, and more. This saves time for customers and employees while ensuring every call goes to the appropriate person.
Intelligent call routing uses factors like caller ID, time of day, current queue sizes, and staff availability to route calls dynamically. This helps minimize wait times, improves first call resolution rates, and enhances the customer experience.
CRM Integrations
Integrating your phone system with CRM software like Salesforce or Zoho allows you to synchronize contacts, records, and call information between the systems. This gives staff instant access to customer data during calls for more personalized and informed interactions.
Mobile Apps
Cloud phone systems come with mobile apps that let you use system features on your smartphone or tablet. These apps provide full call control, meaning you can transfer calls, start conferences, access voicemail, see who's available, and more whether you're at your desk or on the go.
Utilizing Analytics and KPIs for Enhanced Decision Making
The built-in analytics and reporting capabilities of cloud-based phone services provide key metrics to help guide business decisions. You can track call volumes, wait times, missed calls, peak periods, and more. Setting KPIs around service level or first-call resolution can further focus efforts on improving customer experience.
Exploring Cloud Contact Center Capabilities
Cloud contact centers build on the phone system foundation with tools purpose-built for call centers. Features like interactive voice response (IVR) for self-service, toll-free numbers, skills-based routing, and real-time dashboards give agents the omnichannel capabilities and insights required for exceptional assisted service.
Implementation and Onboarding Process
Implementing a cloud based phone service typically involves the following key steps:
Planning Requirements
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Determine your business phone system requirements including number of users, call volume, features needed (call routing, auto-attendants, etc.), and integration with existing apps
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Choose a reliable cloud-based phone system provider like Dialzara that offers the necessary features, flexibility, and support
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Decide whether to port your existing phone numbers to the new system or get new numbers
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Make sure your internet bandwidth can support a VoIP phone system
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Inform staff about upcoming changes and provide training resources
Configuring the System
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Create user accounts and assign phone numbers and devices
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Set up call flows including auto attendants, ring groups, call routing rules, voicemail, etc.
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Configure features like call recording, analytics, IVR menus, call center tools
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Integrate your CRM, help desk, accounting software and other business apps
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Port over existing phone numbers if desired
Testing and Optimization
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Thoroughly test call quality, routing logic, integrations, and features
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Make tweaks to improve system performance and align with business needs
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Deliver training to employees on desktop and mobile apps
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Monitor usage and call metrics to optimize over time
Migrating to Dialzara's best cloud based phone service takes the hassle out of managing communications infrastructure. Their team helps you seamlessly transition while minimizing downtime through planning, porting numbers, configuring features tailored to your needs, staff training, and ongoing support. The result is lower costs, flexibility to scale, and advanced capabilities to enhance productivity.
Provider Tier Comparison
Cloud-based phone services are offered by providers across a range of tiers, from large telecommunications companies to niche cloud calling vendors. Comparing the tiers can help businesses understand the key differences in pricing, customer service, reliability, features, and overall fit.
Large Telcos
Major phone companies like AT&T, Verizon, and CenturyLink now offer cloud-based phone services alongside traditional landline options.
Pricing
- Can be more expensive for advanced features
- Large telcos leverage brand reputation to command higher prices
Customer Service
- High call volumes can lead to long wait times
- Less personalized support due to large customer base
Reliability
- Leverage existing robust network infrastructure
- Rare, large-scale outages impacting many customers
Features
- Extensive legacy feature set
- Slower pace of innovation than cloud-focused providers
Fit
- Best for larger enterprises that value name brand trust
- Less optimized for nimble, budget-conscious SMBs
Mid-Market Providers
Companies like RingCentral and Nextiva occupy the middle ground with a balance of scale and flexibility.
Pricing
- Competitive pricing models and bulk discounts
- Features priced incrementally based on business needs
Customer Service
- Moderate wait times
- Client advisory services for larger accounts
Reliability
- High-availability cloud infrastructure
- Rare, isolated system incidents
Features
- Robust platform integrations
- New capabilities added regularly
Fit
- Appealing blend of reputation and innovation
- Well-suited for many small business use cases
Niche Cloud Calling Companies
Newer entrants like Dialpad and Aircall specialize exclusively in cloud-based offerings.
Pricing
- Low basic rates with inexpensive core features
- Advanced capabilities at additional cost
Customer Service
- Short wait times
- Hands-on account management
Reliability
- Potential growing pains on less proven platforms
- Focused uptime as primary product offering
Features
- Leading-edge functionalities
- Limited legacy feature support
Fit
- Ideal for startups and simpler needs
- Unproven long-term viability
In summary, larger telcos offer strong infrastructure but less innovation, niche players deliver leading-edge capabilities but more risk, and mid-market providers balance both. Businesses should weigh factors like current stack, growth goals, and budget when choosing.
Key Considerations When Choosing a Provider
When evaluating cloud-based phone service providers, reliability and uptime should be top priorities. Look for proven stability, redundancy in network infrastructure, and service level agreements (SLAs) guaranteeing 99.999% uptime. Frequent service disruptions can negatively impact operations and customer experiences.
Reliability and Uptime
- Verify the provider has robust data centers with backup power and multiple connectivity paths. This prevents single points of failure.
- Review historical uptime track records over several years. New entrants may lack proven reliability.
- Confirm guaranteed SLAs of 99.999% uptime or higher to minimize potential call failures.
Ease of Setup and Support
Selecting a provider that assists with implementation and ongoing support is advisable. Consider whether they:
- Help port existing phone numbers to new system
- Configure network and devices for plug-and-play functionality
- Offer user training resources and demos for getting started fast
- Provide 24/7 technical support via phone, email, and chat
Security and Compliance
Data security should also influence provider choice. Evaluate:
- Encryption protocols during call transmission and storage
- Compliance with regulations like HIPAA if handling sensitive data
- Authentication methods available to access account controls
- Firewall, antivirus, and vulnerability testing protections
Choosing a Phone System Provider: Factors to Consider
When selecting a business phone system provider, key considerations include:
Reliability and Uptime
Look for substantial redundancy, proven historical uptime of 99.999%, and an ironclad SLA.
Ease of Implementation
Choose a provider that assists with number porting, device setups, and user training.
Ongoing Technical Support
24/7 multichannel customer support indicates a strong commitment to client success.
Security
Verify security features like encrypted calling, data compliance, authentication safeguards to protect sensitive communications.
Service and Feature Set
Confirm all required call handling features are offered to suit business needs.
Carefully evaluating providers against these criteria simplifies selecting a robust cloud telephony partner equipped to fulfill an organization's unique requirements.
Cloud-Based Phone System Pros and Cons
Advantages of Cloud-Based Systems for Small Businesses
Cloud-based phone systems offer several key benefits for small businesses compared to traditional landline systems:
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Scalability: It's easy to add or remove extensions as your business grows or shrinks. No need to invest in expensive hardware upgrades.
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Cost-savings: No large upfront capital expenditure on hardware/software. Pay affordable monthly fees based on usage.
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Advanced features: Get access to advanced call routing, auto-attendants, analytics, etc without expensive PBX investments.
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Mobility: Employees can use softphone apps to make or receive calls from anywhere. Enables remote work.
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Reliability: Cloud systems have built-in resiliency and redundancy to minimize downtime risks.
Potential Drawbacks and How to Mitigate Them
Some potential downsides to consider:
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Internet dependency: Cloud phones rely on internet connectivity to function. Mitigation strategies:
- Use SD-WAN to bond multiple ISP links.
- Have backup 4G/5G wireless plans.
- Enable automatic call rerouting to cellphones if internet drops.
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Sound quality concerns: Perceived lower call quality compared to landlines. Mitigation:
- Ensure sufficient internet bandwidth.
- Use QoS monitoring to prioritize voice traffic.
- Choose reputable provider with proven call quality.
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Number porting complexity: Porting existing phone numbers to cloud can have risks. Mitigation:
- Work with experienced providers who can validate numbers before porting.
- Leverage test numbers first before porting all numbers.
VoIP vs Landline: Making the Switch
When transitioning from traditional landline system to cloud-based VoIP system:
- Conduct thorough inventory of all existing phone hardware.
- Evaluate internet connectivity bandwidth needs.
- Select VoIP phones or softphones aligned with business needs.
- Develop a transition plan and timeline with contingencies.
- Set up test group to pilot VoIP system first before full rollout.
- Provide employees proper training on using new VoIP system/handsets.
Ensuring Quality Service with SLA-Guaranteed Providers
Important to select reputable cloud phone providers that offer SLAs on:
- Uptime %: Guaranteed % of monthly uptime.
- Mean time to repair: Guaranteed timeframe to resolve issues.
- Voice quality: Guaranteed mos scores for call quality.
- Disaster recovery: Guaranteed RTO/RPO for restoring service.
SLAs provide financial penalties if guarantees are not met, ensuring quality.
Advanced Cloud Phone System Features for Enhanced Productivity
Cloud-based phone systems offer a variety of features that can significantly improve communication and collaboration within a business. These capabilities streamline operations, boost productivity, and enhance the customer experience.
Call Routing and Ring Groups for Efficient Call Management
Call routing allows businesses to intelligently distribute incoming calls based on predetermined rules and conditions. For example, calls can be sent to specific departments, individual employees, or ring groups. Ring groups connect a group of phones to the same number, with calls ringing each device simultaneously or in a set sequence. This ensures calls are fielded quickly without getting lost.
With customizable call flows, calls are seamlessly transferred to the appropriate contacts. This prevents customers from getting bounced around departments trying to have their issues resolved. Advanced call routing features like skills-based routing even identify the best available agent to handle the inquiry based on individual skillsets.
HD Audio and Video for Superior Communication
High definition audio and video takes call clarity to the next level. With stunning voice quality free of background noise, echo, and distortion, conversations sound natural and professional. The addition of video chat enables face-to-face interactions, promoting stronger engagement similar to in-person meetings.
For customer support teams, visual cues provided by video can be invaluable in resolving issues quickly and accurately. Sales teams similarly benefit from that personal touch when demoing products or negotiating deals.
Auto Dialers and Intelligent Call Routing for Sales Efficiency
Auto dialers integrated with cloud phone systems help streamline lead generation and sales prospecting. By automatically dialing contacts from a list, auto dialers can qualify more leads faster without manual effort. Intelligent call routing directs calls to the next available sales rep, reducing wait times.
These capabilities allow sales teams to power through lead lists rapidly. By automatically filtering out bad numbers, wrong contacts, and unqualified prospects, auto dialers ensure reps only spend time speaking with viable leads. This maximizes productivity and enables achieving revenue goals quicker.
Affordable International Calling for Global Businesses
For companies with an international customer base or offshore teams, cloud platforms provide reliable and cost-effective global connectivity. Built-in capabilities provide local phone numbers from over 100 countries and affordable per-minute international calling rates.
This facilitates seamless communication with global stakeholders without racking up excessive long distance fees. Businesses save significantly over traditional landlines while benefiting from enterprise-grade call quality and uptime.
With cloud phone service's robust international capabilities, location is no longer a barrier for conducting business globally. Teams scattered worldwide can collaborate as if under one roof.
Conclusion and Key Takeaways
Switching to a cloud-based phone system can provide significant benefits for small and medium-sized businesses, including:
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Cost savings: Cloud phone services require little to no hardware or maintenance costs compared to traditional phone systems. Usage-based pricing allows businesses to scale services up or down as needed.
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Enhanced capabilities: Features like intelligent call routing, IVR menus, call analytics, and integration with CRM and other business apps are easily added.
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Flexibility and scalability: Services can be quickly set up, changed, or expanded to support seasonal demands or growth.
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Reliability: Leading providers offer 99.999% uptime SLAs along with geo-redundant systems and emergency call routing.
When selecting a cloud phone provider, key considerations include:
- Integrations with your existing business systems
- Customizable call flows and IVR menus
- Analytics and reporting capabilities
- Responsiveness of customer support
- Compliance with regulations for your industry
- Financial stability of the provider
Migrating fully to the cloud or implementing a hybrid solution with existing equipment can ensure you realize maximum rewards from the switch while minimizing business disruption during the transition. With the right planning and provider partnership, cloud-based communications can transform a small business's customer experience and bottom line.
