What is the Difference Between CPaaS and VoIP Technologies?

The market share of cloud communication is likely to reach USD 22.4 billion by 2028, with an estimated CAGR of 25.3% during 2021-2028. The market is galloping. An increasing number of companies are taking their communication systems to the cloud. Reason? Enhanced customer satisfaction, more revenue generation, many growth opportunities, and a competitive edge, to name a few.

Businesses have learnt that cloud-based communication is the key to a secure future and are increasingly adopting VoIP and CPaaS technologies. Most have already made the move, while others are on the brink. However, understanding the difference between them is crucial before pulling the trigger.

VoIP and CPaaS: Cracking the acronyms in vogue

Understanding VoIP

Voice over Internet Protocol (VoIP) is the founding technology of modern-day cloud communication. It enables voice calls using the web. As it grows, VoIP providers also offer other services and communication channels such as video, messaging, chats, and more.

Factors like cost-benefit advantages over landlines, 5G connectivity, and the need for flexibility and mobility are some prominent reasons driving businesses to adopt VoIP. Modern providers follow the “as-a-service” subscription model to provide flexible plans and payment options.

VoIP will likely enjoy a fruitful future run due to some striking benefits.

• Immediate and significant savings in both direct and indirect costs.
• Increased accessibility with the call-from-anywhere feature.
• Complete portability to meet remote and mobile working needs.
• Scaling up without investing in additional lines and dedicated hardware.
• Affordable advanced features such as auto attendant, call transfer, and more for all sizes of teams.
• Enhanced voice quality with fewer call drops.
• Advanced encryption and identity management technologies to improve security.

Understanding CPaaS

Communication Platform as a Service (CPaaS) is a much more mature, cloud-based technology. It provides a targeted communication solution. It allows businesses to add voice, messaging, video, and other communication capabilities to their apps without building them from scratch. Communication centres-as-a-service is a classic CPaaS example.

CPaaS solutions are a basic framework for communication. It comes with no end-user application. The enterprises can build their own applications with low-code or no-code concepts on top of it.

Simply put, CPaaS make it possible for an enterprise to have communication channels like voice or chat within their own shopping apps.

There are several long-lasting benefits of CPaaS. However, some of the most eye-catching ones that inspire businesses to invest in the technology are:

• Seamless scalability to meet the sudden demand surges.
• Hyper-customisation to develop and implement tailored communication apps quickly.
• Benefit from new communication capabilities, channels, and advanced technologies such as AI.
• Real-time responses to deliver unmatched customer experience, increase sales, and build loyalty.
• Enhances collaboration to improve employee engagement.
• Global outreach with account management and regulatory compliance capabilities.
• Cost reduction with no need to buy dedicated infrastructure.
• Pay only for the required service instead of predefined packages.

Making the choice

The debate on choosing VoIP or CPaaS is neverending for most companies. However, the decision is lucid if they can answer some simple questions.

• Is the company only aiming to reduce the cost of the traditional phone system?

VoIP is the perfect solution to reduce costs by half or even more.

• Does the company need to add cloud-based communication features to their existing system? Does the company have a developers’ team?

CPaaS is precisely the solution to create the best-fit solution and accomplish this goal.

Bottomline

Digital transformation of communication systems is the need of the hour for future-oriented businesses. While VoIP is a future-proof technology, the current trends strongly drive businesses towards CPaaS, thanks to its lucrative nature in the B2B sector.

Regardless of the choice of the solution, the success largely depends on the provider’s expertise. Airtel, a seasoned telecom provider, assesses business needs and helps find the best-fit CPaaS or VoIP solution with absolute reliability, security, and cost-effectiveness.