What is “Cloud Based VoIP”?

Based upon our knowledge of VoIP as it exists today, "Cloud-Based VoIP", and "VoIP Service" or “Hosted PBX” and “Managed IP PBX” etc. are exactly the same thing. If you as an end-user are on a Fully Hosted PBX service, regardless of the carrier, the network configuration, the servers etc., then you are getting service from "the cloud", i.e. not from your premise based equipment.

With that said, you still need premise based equipment (unless you have an IP compatible PBX) that will allow you to communicate THROUGH "The Cloud" via SIP or other protocols.

We're talking semantics, plain and simple. I would worry less about "the Cloud" (assuming your IP provider has solid peering relationships and a sound backbone) and more about what type of equipment to use and what vendor ultimately will meet your needs both functionally and financially after at thorough TCO (Total Cost of Ownership) evaluation has taken place.