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Tue 21st of November 2017


IAS EXPRESS - Free Download

What is Cloud Telephony?

In June 2016, India’s telecommunications department has directed telecom operators to stop the cloud telephony services of the Gurgaon-based firm- ‘Knowlarity’.

  • The company offers a technology to replace expensive communication hardware system with an affordable cloud-based telephony solution for small and large businesses.

What is Cloud Telephony?

  • Cloud telephony refers specifically to voice services and more specifically the replacement of conventional business telephone equipment, such as a Private branch exchange (PBX), with third-party VoIP service.

Its applications

  • Cloud telephony services have been predominantly used for business processes, such as advertising, e-commerce, human resources, and payments processing. Services include distributed call centers and economical teleworking.


  • Cloud Telephony offers many advantages over traditional on-premise telephony applications. Traditional on-premise telephony applications typically consisted of PBX, IVR and lot of wires through MDF (Main Distribution Frame).
  • For a small or medium-sized business, the capital investment to set up VoIP infrastructure in-house could be too high compared to the potential return, but cloud telephony could offer the same services on a lower-cost subscription basis.
  • The cloud telephony provider is also an expert in the technology, whereas a small business is unlikely to have an employee with the same level of expertise, or cannot justify the expense of a full-time telecommunication infrastructure position.


  • Cloud telephony systems require an internet connection to access files so if a connection is slow or fails then it will affect productivity. Many small business owners still find this fact troubling as the halt to operations can be detrimental.
  • Cloud technology still must exist on physical servers, and the physical location of those servers is important under many nation’s laws.

Prelims Question of the Day

With reference to 'Natural Rate of Unemployment', consider the following statements.

1. It is the level of unemployment in an economy that is just consistent with a stable rate of Inflation.

2. It is the unemployment that prevails when all markets in the economy are in equilibrium.


(a)1 and 2

(b)2 only

(c)1 only

(d)None of the above

Mains Question of the Day

1.GS-No party in power can afford to ignore Directive Principles of State Policy. Comment.(200 Words)

2.Political Science - Explain the role of non state actors, like IMF, World Bank, European Union and MNCs, in modulating and transforming the broad dynamics of international relations. (250 Words).

3.SOCIOLOGY - What is the impact of Globalization on the structure and mobilization of the working class in India? (250 Words).

Sociology - Thinkers