A cloud phone system is hosted in the cloud, which means that data is stored in a secure server that you can reach over the internet. A cloud phone system replaces traditional landlines and is usually hosted by a third-party service provider.

A cloud-based phone system doesn't require on-premises hardware or consistent maintenance. Instead of an answering machine tape, phone bills, and tons of wires, a cloud phone system is stored digitally, and calls are received over the internet. 

Cloud phone systems only require a broadband internet connection to operate and can be accessed through any internet-enabled device, including computers and smartphones. They are less expensive and easy to use, helping to improve the way businesses operate.