Everything You Need to Know About Cloud-Based vs. Traditional SIP Trunking

Posted on June 11, 2024

Build Your SIP Knowledge Base to Enhance IT Decision-Making for Your Business

How does cloud-based SIP trunking differ from traditional SIP trunking? This is a key question for developers and IT leaders considering a move to modern communication systems.

Cloud SIP trunking eliminates the need for costly in-house equipment and leverages the flexibility and scalability of the cloud. By doing this, businesses can improve their communication systems, reduce costs, and ensure business continuity, especially in a CPaaS environment.

Cloud-based SIP trunking is revolutionizing how companies communicate, making it vital for developers building voice or messaging capabilities into apps and IT leaders updating existing PBX systems.

What is SIP Trunking?

SIP trunking stands for Session Initiation Protocol trunking. It’s a method that allows businesses to make and receive phone calls over the internet instead of traditional phone lines. This is crucial for modern communication, especially in a Communications Platform as a Service (CPaaS) environment.

SIP trunking connects a business’s private branch exchange (PBX) to the internet, enabling voice, video, and messaging services. It replaces the need for traditional phone lines, offering more flexibility and cost savings.

Traditional SIP Trunking

Traditional SIP trunking requires an in-house PBX and relies on a local telecom carrier to provide the trunking. Calls are transmitted over a publicly switched telephone network (PSTN), which operates in specific regions or countries. This setup demands significant hardware and maintenance, making it less scalable.

Cloud-Based SIP Trunking

Cloud-based SIP trunking uses a virtual phone line provided by a cloud service provider. This method eliminates the need for physical infrastructure, offering enhanced scalability and flexibility.

Cloud-based SIP trunking allows businesses to integrate their communication systems seamlessly with other software like CRM apps. This integration supports remote and hybrid work environments, making it easier for businesses to adapt to changing needs.

How Does Cloud-Based SIP Trunking Differ from Traditional SIP Trunking?

The main differences between traditional and cloud-based SIP trunking revolve around infrastructure, scalability, and flexibility.

Aspect Traditional SIP Trunking Cloud-Based SIP Trunking
Infrastructure Requires on-premises PBX and hardware Virtual phone line, minimal physical hardware
Carrier Local telecom carrier, limited geographic area Cloud service provider, often with international reach
Scalability Limited, requires physical hardware upgrades Highly scalable, instant channel adjustments
Flexibility Tied to physical location, harder to support remote work Supports remote and hybrid work environments easily
Integration Limited integration capabilities Easy integration with other software like CRM systems

Benefits of Cloud-Based SIP Trunking


Cloud-based SIP trunking offers unlimited channels and international coverage, making it easy to scale your communications. Unlike traditional SIP trunking, cloud SIP trunking grows with your business needs. You can add or remove channels quickly, without extra setup fees or long wait times. This flexibility is ideal for businesses with fluctuating call volumes or those planning to expand internationally.

With cloud SIP trunking, your team can work from anywhere. Employees can use SIP devices, mobile phones, or even landlines to make and receive calls using the business phone number. This flexibility ensures business continuity, even when employees are out of the office. Additionally, cloud SIP trunking integrates easily with other software and apps, making it a perfect fit for modern, agile workplaces.

Reduced Costs

One of the significant advantages of cloud-based SIP trunking is the lower carrier fees and minimal hardware requirements. Traditional SIP systems often come with high costs for in-house hardware and carrier fees. In contrast, cloud SIP trunking uses a subscription-based pricing model, where you only pay for the channels you need. This can significantly reduce your overall communication expenses, especially for businesses with high call volumes or multiple locations.

Low Maintenance

Cloud SIP trunking is provider-managed, which means the service provider handles all the maintenance, upgrades, and security. This reduces the burden on your IT team. Updates can be rolled out through simple software updates, and there’s minimal physical infrastructure to maintain. This low-maintenance approach allows your IT staff to focus on other critical tasks, knowing that your communication system is in good hands.


Cloud providers offer redundancy and high uptime, ensuring your business communications are always available. If one data center experiences an issue, calls can be rerouted to another, minimizing downtime. This business continuity is crucial for maintaining customer satisfaction and operational efficiency.

Gain the Benefits of the Cloud by Choosing the Right SIP Trunking Partner

Cloud-based SIP trunking offers significant advantages over traditional SIP trunking. While traditional SIP requires in-house PBX systems and relies on local telecom carriers, cloud-based SIP trunking utilizes virtual phone lines managed by cloud service providers. This setup provides greater scalability, flexibility, reduced costs, and lower maintenance.

With the right partner and strategy, transitioning to cloud-based SIP trunking can be a seamless and highly beneficial move for your organization. Embrace the future of communications with Flowroute and unlock the full potential of your business operations.

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