In the era of rapid technological advancement, a reliable cloud telephone system has become indispensable for businesses. Remarkably, 74% of companies identify cloud phone systems as their top investment priority. Moreover, the market for cloud-based telephone services is projected to experience a Compound Annual Growth Rate (CAGR)
Of 12% from 2020 to 2024, underscoring the increasing significance of these systems. These compelling statistics underscore the widespread preference for cloud phone systems among contemporary businesses.
Traditional Office Telephone Systems
Traditional Office telephone systems rely on physical infrastructure, encompassing on-premise Private Branch Exchange (PBX) hardware and intricate wiring. Businesses own and maintain the entire telephone system, providing a high level of control but also demanding dedicated IT staff for management. Scalability with traditional systems can be challenging, often requiring additional hardware for expansion.
Initial setup costs tend to be higher due to the need for purchasing and maintaining hardware, making it a less flexible and cost-effective option for some businesses. Furthermore, the reliance on local hardware makes traditional systems vulnerable to local outages or hardware failures, potentially impacting business continuity.
Cloud-Based Office Telephone Systems
In contrast, cloud-based office telephone systems leverage cloud and internet connectivity, eliminating the need for physical PBX hardware on-site. Managed by third-party service providers, these systems reduce the burden of maintenance and upgrades for businesses, offering a trade-off between control and convenience. Cloud systems excel in scalability, allowing businesses to easily adjust users and features based on their needs.
With typically lower initial costs and a subscription-based model, cloud systems are often considered a cost-effective solution. They also boast high reliability, with redundancy through servers in numerous locations, reducing the chance of downtime because of local outages or hardware failures.
Cloud Telephone System vs. Traditional Telephone Systems
- Human Resources
While it may sound straightforward, traditional phone systems were quite chaotic. They involved a maze of hundreds of tangled wires, extensive hardware devices taking up substantial office space, and a dedicated team of IT personnel with in-depth knowledge required for installation.
Seemingly overwhelming. Transitioning to a cloud-based phone system eliminates all these complications. As these phone systems operate on software and are managed by third-party service providers, businesses can enjoy peace of mind without the hassle of managing the intricacies associated with traditional setups.
- Mobility
In the past, conventional telephone systems confined employees to their desks for taking calls and completing tasks. There has, however, been a significant change in the dynamics today. With a growing preference for remote work among many employees and companies, there’s a demand for phone solutions that cater to mobile working needs.
According to statistics, cloud telephone systems are exceptionally well-suited for this scenario, as they can be accessed on a variety of internet-enabled devices, providing an ideal solution for the evolving landscape of mobile work.
- Cost
Acquiring a business solution requires a financial commitment. However, when examining traditional phone systems, this investment seems disproportionately large, posing a challenge for small to medium-sized enterprises with constrained resources. In contrast, cloud-based phone solutions provided by third-party service providers alleviate the financial burden.
According to statistics, cloud-based phone systems can significantly reduce the initial costs for startup businesses, potentially by up to 90%. Businesses can opt for subscription plans offered by service providers without shouldering the entire expense of setting up the entire phone system.
- Scalability
Expansion and contraction are inherent in every business, and having a solution that facilitates instant scalability can significantly save on financial resources. Cloud-based phone systems offer a seamless and rapid process for adding or removing agent extensions through software.
In contrast, traditional telephone systems posed a complex and time-consuming challenge when it came to such adjustments.
- Features
Traditional business phone systems provide a restricted set of communication features. To stay competitive in the market, businesses require a phone solution that can meet diverse communication needs through a unified platform. Cloud telephone systems offer a range of advanced communication features, including IVR, voicemail, business phone numbers or DID numbers, call reports, call recording, working time management, and more.
With these capabilities, businesses no longer need to depend on multiple apps to achieve their communication objectives, resulting in a smoother and more seamless workflow.
- Ownership
In the realm of control and ownership, traditional phone systems provide a higher degree of leverage. With the server installed on the business premises, the responsibility for installation, management, and maintenance rests with the business itself. Full server ownership affords owners a greater level of control.
However, considering the associated costs and various factors, on-premise servers seem more suitable for large corporations requiring complex solutions and capable of making substantial investments. For small to medium-sized businesses, a dependable and feature-rich cloud-based phone system offers the most value.
- Reliability
When considering traditional telephone systems, achieving business continuity was significantly more challenging. This was mainly due to the time and effort required to restore hardware in the event of failure or faults, whether caused by environmental factors or other reasons. A single fault could bring down the entire telephone system, necessitating manual resolution by the IT team and causing business downtime.
Contrastingly, cloud-based phone systems operate with redundant servers maintained by service providers in various global locations. In the event of any fault, regardless of the cause, the phone system remains operational due to the availability of multiple backups. This not only ensures maximum uptime for a business but also significantly enhances its overall reliability.
- Customer Service
The success of any business hinges on the satisfaction and happiness of its customers. Even with highly skilled employees and excellent services, achieving wonders is impossible if customers do not have a positive experience. Given that communication is the primary tool for connecting with customers and prospects, it is crucial to ensure the availability of effective communication tools.
Cloud telephone systems provide valuable features such as Multi-level IVR, Voicemail, Intelligent Call Routing, and more, empowering employees to perform their tasks quickly, easily, and efficiently. Statistics indicate that cloud phone systems can save up to 32 call minutes per day. These elements significantly contribute to employees’ productivity, performance, and pleasure, eventually leading to improved customer service.
Final Words :
Outdated are the days of traditional phone systems; the future lies in cloud-based phone systems with their modern and advanced features. When faced with the choice between the two, opting for a cloud telephone system is undoubtedly the smart move for businesses seeking to maximize the benefits of cloud communication.
Read Also: The Evolution of Office Telephone Systems From Landlines to VoIP