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Today, Tony from Nextiva explains what a VoIP phone is and how it works. VoIP stands for voice over internet protocol and uses the internet for phone calls instead of landlines. There are two types of phones for cloud-based systems: hard phones, which are physical devices connected via ethernet cable, and soft phones, which are software apps for laptops, tablets, or smartphones. Hard phones resemble traditional desk phones, while soft phones allow call functionality on various devices.