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Cloud-Based Phone Systems-Pros and Cons

May 28, 2021

Businesses all over the world are switching to cloud phone services to take advantage of the benefits the cloud offers. This is especially true since COVID hit – a 2020 survey conducted by Logic Monitor found that 87 per cent of global IT decision-makers believe the pandemic will cause organisations to accelerate their migration to the cloud.

Enabling remote work and reducing the risks inherent in relying on a single on-premises location, a cloud phone system is at the top of the list for everyone from small businesses to enterprise-level corporations. Does that mean a cloud-based hosted phone system is right for every company? What are the pros and cons of using a cloud-based phone system?

Let’s dive into the cloud-based phone system pros and cons to help you decide what’s right for your business.

The Pros of Switching to a Cloud-Based Phone System

Here are the advantages your business will experience with a cloud phone system.

Lower communication costs

With a cloud-based phone system, your business can say goodbye to the expense burden of maintaining an on-premises system. This is because of the technology involved. Cloud phones use the internet to transmit voice data using a technology called Voice over Internet Protocol (VoIP).

Unlike legacy phones, which use traditional phone lines and require on-site hardware, VoIP phones only need the internet. So, you no longer have to budget for ongoing maintenance costs. You’ll also save on high-end features, such as call queuing, an email interface, and call transfer, which come as standard with hosted phone systems.

And, your business won’t need to make a large upfront investment for an on-premises PBX system, making cloud-based hosted phone systems a great option for small businesses that can’t afford a world-class traditional PBX system.

Increased flexibility

Another major cloud-based hosted phone system pro is the increase in flexibility. Employees can work from anywhere with a cloud phone system.

This can lead to important benefits:

Enhanced business continuity – in the event of a natural disaster or another unexpected event that compromises your on-premises location, employees can move to a different location and continue working.

Increased productivity – with a hosted phone system, your teams are remote enabled. Studies show that working from home can boost productivity, with remote employees working, on average, 1.4 days more per month than in-office employees.

Better reliability – Because a cloud phone system uses remote data centres and redundancy, if one data centre is impacted by an unexpected event, another data centre will take over. As a result, your business experiences uninterrupted service delivery.

Easier scaling and faster setup

With a traditional phone system, scaling is cumbersome. New employees need new phone lines and ports. This costs money and can dampen productivity depending on how long the setup takes. When your phone system is virtual, scaling up or down is as simple as adding or removing a user. There’s no lengthy wait-time to get started or need to make a pricey hardware investment.

The Cons of Switching to a Cloud-Based Phone System

There are a couple of drawbacks every business should know about before switching to a modern phone system.

Reliability depends on your internet connection

Because a cloud phone system uses the internet to transmit calls, you’ll need a high-speed internet connection. Also, if your internet service goes down, you could experience a disruption in service until you route the calls to employees’ mobile phones.

Costs of upgrading your technology

Another potential con is the cost of IP phones. If your business already has an effective on-premises PBX system, you’ll have to look at the cost-benefits of purchasing new internet-based phones right now.

Getting the Most Out of Your Business Phone System

There are far more pros to switching to a cloud-based hosted phone system than cons. As long as you have excellent internet service and choose a cloud provider and service plan that best fits your needs, you can gain all the cost, productivity, and flexibility benefits the cloud offers. Connect with our expert team today for help getting the most innovative, cost-effective phone system for your business.