SIM-Less Cloud Phones : The Benefits, Challenges and The Risks

Cloud Phones

SIM-Less Cloud Phones : The Benefits, Challenges and The Risks

If you manage or run a national or international company, you should have a thorough understanding of cloud phone systems.
There are many chances that you may already have it or are planning to buy it, and the purpose might be marketing, customer service, cold calling for sales, surveys, etc.

The good thing is you have finally taken that step you should have taken a long time ago!

You are not alone if you are considering cloud phone solutions (VoIP phones). Over the past few years, thousands of businesses have switched to cloud phones instead of traditional phone lines.

However, it is still true that many business owners are hesitant to adopt cloud-based phone systems due to uncertainty about their pros and cons.

We will address all of the advantages and disadvantages of a cloud-based phone system in this post to dispel these concerns. Therefore, let's begin by defining what a cloud phone system is.

What is cloud telephony/cloud-based telephone system?

Cloud telephony, also called virtual cloud phone system, provides business phone services over the internet.

Businesses can utilize the software for a range of communication activities, such as making and receiving calls, sending voicemails, video conferencing and call conferencing, recording calls, forwarding calls, monitoring and analyzing performance in real-time, and many many other things.

The cloud telephony system treats you and your customers' voices as data because they are uploaded and downloaded in real-time.
Virtual Cloud Phone

A cloud phone is a telephony service that can be purchased online by your business. As an alternative to maintaining a private branch exchange (PBX) in your office, you can purchase cloud phone system services from a provider (also known as a hosted PBX) and pay a subscription fee for the service.

Why is it beneficial to use a cloud-based phone system? Can it be challenging as well? Below are the biggest pros and cons of these services.

Benefits of Cloud-Phones

Companies that want to reduce their costs and improve the quality of conference calls will find cloud phone systems to be an excellent alternative. Cloud telephony theoretically allows thousands of people to take part in the same conference call.

They are, therefore, a great solution for both small and large businesses alike, as well as for individuals and families. These are some of the benefits SIM-less cloud phones offer:

1. Cost

As an alternative to regular phone contracts, Cloud Phones are a cost-effective solution. With a single broadband contract, you won't need separate bills for a phone and internet provider.
Also, within most contracts, you'll be able to make free calls between your company, locations and only pay a small fee for international calls.

A cloud phone provider like KrispCall often offers special rates to ensure that your leads and customers can be reached effectively at a reasonable price.
In addition, Cloud PBX does not charge setup fees like SIP trunking services, so it is extremely cost-effective.

2. No special hardware requirement

VoIP Phone

There is no significant upfront investment with a cloud-based phone system, which implies a relatively small risk for your business. All you need is an IP phone or softphone and a steady internet connection.

By switching to a Cloud PBX, you can keep your customers happy while continuing your operations.

3. Portability

VoIP is not location or distance-dependent, so you can use your VoIP phone system wherever you are, as long as it is configured to work with the office system.
Using a cloud phone is as easy as accessing your email, i.e., it is right at your fingertips.
You need a compatible device, an internet connection, and maybe a headset.

Thus, remote employees are able to maintain productivity levels, enhancing business efficiency and flexibility.

4. Minimal maintenance cost

Almost all cloud-based telephone (VoIP) service providers have hosted services that store all phone system hardware off-site. In general, you only need a functional internet connection and cloud phones to use cloud hosting services.

This means that you will not have to pay for equipment maintenance, mechanical breakdowns, or additional IT hours to keep your system functional. Your service provider will handle all of these issues off-site.

5. Scalability

Businesses can conduct high-quality, large-scale conference calls using VoIP. The number of users you have can be added and removed as needed; you usually pay only for the number of users you have.

Therefore, a SIM-less cloud phone is a great option for companies in growth mode, as they would prefer a phone system that grows with their business.

Challenges of Cloud Phones

VoIP does have some disadvantages, despite the potential to offer a low-cost, highly effective calling system. As cloud-based telephony is completely dependent on the internet, you need a high-speed, reliable internet connection with adequate bandwidth.

Following are some of the drawbacks of SIMless cloud phones:

1. Internet Dependency

To conduct business with Cloud PBX, you will always need an internet connection. Cloud telephony must be supported by a stable internet connection and enough bandwidth unless you prefer to suffer from poor voice quality.

2. Latency

Often referred to as lag, network latency defines delays in communication over the network. In cloud telephony, the voice of each call is converted into data packets at the sender's end, transmitted across the network, and then converted back into voice at the receiver's end.
Any interruption in this process will result in jittery communication and compromise the call quality.

Moreover, the recipient might even receive a delayed or broken message, complicating what they learn from the conversation.

However, the best cloud phone service providers can help you combat latency by designing their systems and algorithms in a way that will significantly reduce it in many cases.

3. Emergency situations

It won't be possible to make an urgent call using cloud phones if there is a loss of power during an emergency. Due to this, it is often necessary for businesses to have a backup landline telephone for emergencies as local telephone exchange networks are unaffected by power outages.

Fortunately, with nearly everyone having a cell phone, it is unlikely that anyone would have trouble reaching an emergency operator.

4. Security Issues

Since the internet is a public network, data can be intercepted, and VoIP calls are no exception. The danger of private voice calls being intercepted is extremely real and should not be ignored.

Fortunately, when you explore cloud telephony providers and how they benefit businesses, you will also learn that most of them practice safety measures to protect your voice data. These measures include high-level encryption when data is transmitted.

5. Migration Costs

When businesses aren't equipped with headsets or have a separate internet line exclusively for cloud phones, moving to cloud solutions can increase costs. Nevertheless, it is important to remember that this equipment is pretty inexpensive, and you will earn it back because your calls will be cheaper.

Risks associated with Cloud Phones

It can be more complicated to secure a cloud phone system than just a straight data network, which can create some vulnerabilities for the system.
However, internet phone systems are not free from security vulnerabilities, and no one should let them dissuade them from using them.

The most serious security threat is eavesdropping, which is possible on both a cloud phone system and a POTS system. Luckily, prevention is best achieved through knowledge, especially in this case. Check out these VoIP security risks.

1. Vishing

In Vishing, you get a call from someone claiming to be an official from a reputable organization and asking for sensitive information.
There is a possibility that criminals have some information about you in these situations, which would give them more credibility. This can lead you to give them more sensitive information as a result.

In Vishing, employees are tricked through fraud tactics. In addition, they might trick suppliers and even clients into divulging sensitive information.
Typically, the fraud strategy targets financial and personal details that are easy to manipulate.

2. Malware and Viruses

Most network systems are vulnerable to malware, trojans, and viruses. They are specially designed to give criminals access to the entire system, consume the network's bandwidth, or severely diminish the internet signal.

While they can do a lot of damage on their own, malicious programs can often create backdoors in your system, which allow hackers to listen in on your conversations or steal important data.

3. DDoS (Distributed Denial of Service) Attacks

DDoS Attack

VoIP networks and devices can be overloaded by a Distributed Denial of Service (DDoS) attack, consuming all bandwidth available.

In Denial of Service attacks, redundant SIP call-signaling messages are inundated on the target, halting call processing and causing VoIP calls to be dropped prematurely. Additionally, a DDoS attack can be used to gain access to system administration tools.

4. Call Tampering

The purpose of call tampering is to interfere with a call that you are currently making. The same path that you use for the call can send a lot of data, causing the call quality to be unstable.
They can also delay the exchange of data packets between callers, causing all communications to break down or causing long periods of silence.


Although the acronym VOMIT might seem a bit gross, it refers to "Voice Over Misconfigured Internet Telephones," a serious threat to business. Cybercriminals can steal sensitive information and voice packets directly from calls using VOMIT tools.

Additionally, there is also the possibility that the attacker can access other valuable information, such as where the call originated, that can be used later to eavesdrop on all of your calls.


Utilizing online tools requires keeping an eye on their pros, cons, and, most importantly, their potential risks. Cloud-based phones are no exception. If you plan to use cloud telephony in your business frequently, you should shore up its vulnerabilities.

However, with a few basic steps, you can avoid most security risks and keep your data safe from harm. Update your tools regularly, make sure your passwords are strong, and refrain from sharing any confidential information over an insecure network.

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