Advantages & Disadvantages of Cloud-Based Telephone Systems
Cloud Phone Systems, also known as hosted phone systems, are a technology that allows organisations to make and receive phone calls using a secure internet data connection rather than traditional phone lines. These systems are becoming increasingly popular among organisations of all sizes due to the many benefits they offer but most importantly, the National Switch Off of old-phone lines.
However, like any technology, there are also potential drawbacks to consider. Here are some of the pros and cons of cloud phone systems:
What is a cloud telephony system?
Cloud telephony is a phone system that works through your internet connection. You may also see it referred to as a VoIP-based hosted PBX solution. Adopting cloud telephony means moving your phone communications to the cloud.
The obvious benefit of moving your phone system into the cloud is gaining access to instant scalability without the problems of installing new phone lines. It’s simply a matter of upgrading your subscription package.
Moreover, despite the name, cloud telephony systems don’t just provide access to phone calls. You also gain other functions as part of a unified communications system, including instant messaging and video meetings. You can also connect with your Customer Relationship Management (CRM) software and other business applications. There are options to gain other functions that may not have been available on traditional, non-cloud telephony systems.
It’s an intelligent way of bringing your team together, enabling them to increase their collaboration capabilities and productivity.
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How do cloud telephony systems work for businesses?
Cloud telephony operates for businesses through a dedicated VoIP service provider. Whenever you dial a number on your physical phone, your service provider routes it to the appropriate recipient. From there, they convert your analogue voice signals into data packets that are moved across your Internet connection.
Inside your office, your individual phone extensions become a thing of the past. Instead of connecting through your landline provider, your physical hardware plugs into your existing network. Plus, you don’t need a physical handset because it works through apps installed on your other devices.
The way you manage your phone communications changes. Now, you can manage everything through an online dashboard, allowing you to carry out functions like:
- Changing phone numbers.
- Initiating call forwarding.
- Adding new users.
Advantages of cloud phone systems
Cost Effective
One of the main advantages of cloud phone systems is that they are often more cost-effective than traditional phone systems. Cloud phone systems do not require upfront costs for hardware or installation, and organisations only pay for the number of lines and features they need. This can save organisations thousands of pounds of upfront and ongoing costs.
Scalability
Cloud phone systems are highly scalable, allowing organisations to easily add or remove lines as needed. This is particularly beneficial for organisations that experience fluctuations in demand (such as seasonal and contract-dependent) or are rapidly growing.
Reliability
Cloud phone systems are hosted on servers and backed up in multiple secure data centres, which ensures reliability and uptime. Cloud phone system providers also typically have systems in place to minimise downtime in the event of a server failure or other issue.
Integration With Other Applications
Cloud phone systems can easily integrate with other organisation tools, such as customer relationship management (CRM) software and collaboration tools. This can improve efficiency and productivity.
Mobility
Cloud phone systems can be accessed from anywhere with an internet connection, which allows employees to be more mobile and flexible. This can be particularly useful for organisations with remote teams or employees who frequently travel.
Disadvantages of cloud phone systems
Dependency
One of the main cons of using cloud phone systems is the dependency on the provider. If the provider experiences financial or operational issues, it can impact the availability and reliability of the phone system. Ensure to choose a provider with accreditations such as ISO27001 and Cyber Essentials and look at their track record of growth.
Security
Like on-premise phone systems, there is a risk of data breaches or cyber-attacks with cloud phone systems. While cloud phone system providers typically have very strong security measures in place with automated back-ups, ensure you work with a cloud-solution provider who has clear fraud protection measures in place.
Compliance
Depending on the industry in which an organisation operates, there may be specific compliance requirements related to the handling of the sensitive data. Organisations should ensure that their cloud phone system provider is compliant with relevant regulations. Matrix247 can handle these elements for you, so you have no need to worry about them.
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Which industries would benefit from cloud-based telephony solutions?
Do you use a phone? Do you need to stay in touch with your team to collaborate on projects? Are you using a remote team to increase your productivity and reduce costs?
If you answered “yes” to any of these questions, cloud-based telephony solutions are designed for your business. In short, any industry can benefit from these solutions because communication is vital across every trade.
With so many features and the ease of switching, there’s no reason not to change to cloud-based telephony for the future.
How do I know if a cloud telephony system is right for my business?
Cloud-based phone systems are considered the gold standard of communication in today’s business landscape because they’re inexpensive, flexible, and don’t require any of the heavy-duty equipment associated with traditional phone systems.
So, is it right for you?
- Equipment – Cloud phone systems are a great option to keep your hardware to a minimum. They can operate entirely through your computer or a mobile device, meaning any extra equipment you buy is entirely optional.
- Costs – Traditional phone systems require installation costs and regular maintenance, which can quickly add up to thousands of pounds in larger businesses. Cloud-based telephony systems are outright cheaper and come with features you won’t find with a traditional phone system, including video conferencing.
- Reliability – There’s no getting around the fact that cloud-based phone systems require a stable Internet connection to function. At Matrix247, we would deploy a new, stand-alone, secure, business grade internet connection (voice-only) as an aside to your current connection.
Generally, all businesses can benefit from cloud-based communications. It’s why most homes and businesses in the UK don’t even have landlines anymore.
With the Great British Switch Off well underway, organisations are ideally placed to transition to a cloud-based phone system. While cloud phone systems can provide many benefits, it is important for organisations to use a provider who will consider any potential drawbacks for the transition and take steps to mitigate them
