Why are Cloud-Hosted VoIP Phone Systems Important?
With customer expectations rising and remote work becoming common, companies seek innovative cost-efficient solutions to ensure effective business communications. The traditional phone systems, once the backbone of communication, are expensive and outdated in today’s digital age where flexibility and scalability are the key to success. Enter Cloud-Hosted VoIP Phone Systems as future-proof solutions for all-size companies transforming internal and external business communication. Its ability to manage interactions seamlessly, enhance flexibility, and reduce costs has made cloud VoIP an essential tool for companies over the years.
What are Cloud-Hosted VoIP Phone Systems?
Instead of traditional phone lines and physical wires, the advanced cloud-based VoIP systems are powered by an internet connection to handle incoming and outgoing calls. They work like conventional landline systems with only one key difference, they are hosted in the cloud. Interestingly, new VoIP telephony has replaced ISDN and PSTN phone systems to ensure continuous services. Flexibility, security, ease of access, and scalability are other reasons that make the traditional phone system obsolete. Meanwhile, VoIP systems have significantly impacted the efficiency of companies across various industries so utilising its potential is crucial to improve business productivity.
Understanding the VoIP Phone Systems
VoIP converts analogue signals into digital data packets to transmit voice data. Meanwhile, it depends on packet-switched networks leading to efficient use of business resources. Companies can use broadband internet connection to communicate internally and externally rather than installing conventional phone lines. Here are a few features of this technology:
- Digital Data Transfer: It converts the analogue voice signals into data packets.
- Internet-based Communication: The technology uses a broadband internet connection for calls.
- Flexible Device Usage: You can access VoIP technology through computers, mobile devices, or phones.
- Resource Utilisation: Companies can benefit from packet-switched networks to save costs and resources.
- Flexibility & Integration: VoIP infrastructure allows companies to integrate the phone system seamlessly with existing business communication systems increasing overall efficiency.
How Business Communication Evolves?
Traditional phone systems were standard for many years but had some limitations in terms of flexibility and costs. This is why companies have switched from analog to digital communication. Meanwhile, internet integration proved a turning point for business communication and promoted unified communication methods. Nowadays, instant messaging, email, and video conferencing have become integral parts of a business allowing more flexible and faster communication. Even VoIP has eliminated the need to develop costly infrastructure and phone lines making communication more scalable and efficient. Let’s take a look at different business communication systems.
- On-Premises PBX System: This phone system is physically installed in office premises and consists of wires connecting office data centers with employee desk phones. The main PBX system or server is placed inside your office. These phone systems can be expensive to establish because of costly equipment and infrastructure requirements. Moreover, it needs more integration capabilities. Your teams can only access the system on the office premises so it does not facilitate remote working. Additionally, maintenance is inevitable and you need a dedicated IT team to repair these problems that can add additional costs to your business.
- Cloud-Hosted VoIP Phone Systems: Cloud telephony system works similarly to on-premises systems with the only difference being the way calls are made using an internet connection. It gives companies much freedom and flexibility to work as they don’t have to develop setups like in legacy systems. Furthermore, cloud systems are cheaper than their traditional phone systems as you only pay for the services you are using, no extra cost is required. Likewise, as the connection is developed through VoIP, it also facilitates remote working teams. Your distributed workforce from all around the globe can make phone calls and join conference calls by installing VoIP software on compatible devices.
Which is Best to Invest in for Your Business? A VoIP or Traditional PBX?
It has become clear that on-site PBX systems come with limited features and large upfront costs. However, it does not mean companies should rule them out completely because they still suit some companies’ needs. But how do you know which is the best system for your business communication or decide whether switching to the cloud can benefit your business? Consider the questions below to make the best decision for your business.
1. How Much Budget Do You Have to Invest?
No doubt the most important thing while deciding between on-premises and hosted VoIP systems is your budget or investment cost. The service provider of both phone systems will provide you with an estimate of upfront and monthly service costs. However, overall cloud-based VoIP is much cheaper than on-premises phone systems in total cost. This is because you only have to pay a monthly fee for the service and maintenance as your service provider remotely manages all this without disrupting services. You do not need an IT team for repairs, updates or maintenance. Meanwhile, setup costs are minimal and you can also facilitate remote employees.
2. Do You Want to Facilitate a Remote Team?
On-premises phone systems do not facilitate remote team members. The main reason is that a phone connection is made inside the office from PBX to the devices. This is why on-premises phone systems are not a good choice for companies that employ remote teams. On the other hand, cloud solutions facilitate remote working allowing them to use the system from anywhere globally to access their business phone system through VoIP. They just need a strong internet connection to make and receive business calls. Interestingly, the call quality is also better so if you are looking to expand your business internationally, investing in the cloud VoIP is an ideal choice.
3. Do You Want to Expand Your Team Globally?
A cloud-hosted phone system offers more flexibility and scalability than its traditional alternative. The reason is that you don’t need to connect the extra wire to the data center. You can add another line using an online account or create a new team member account instantly. Furthermore, you can also use the business number on existing devices which means the expansion is easier with hosted VoIP. It is a superb solution for your growing teams and call management is also easier. Thus, if you plan to expand your business by hiring professionals from a global talent pool in the coming years, choose cloud-based IP phone systems to streamline your business communication.
4. How Much Control You Need On Your Business Phone System?
An on-site phone system is suitable if you want complete control over your business phone system. It gives you direct control of your business data but you may need an expert in-house team to manage the issues in your network. However, if you prefer to avoid the hassle of maintenance and updates, a cloud solution is perfect for you. Your cloud service provider will be responsible for all the upkeep and you do not need additional equipment in the office. You can continue working on the devices by updating the software.
How are Cloud-Hosted VoIP Phone Systems Transforming Business Communication?
1. Offer Unmatched Call Quality: The End of Bulky Phone Lines
There was a time when cracking lines and poor connections interrupted your business communication. Nowadays, cloud-based VoIP technology uses an internet connection to ensure high-quality audio and video calls that exceed traditional phone systems. Meanwhile, efficient call routing systems offer clear and stable connections for international and long-distance calls. Thus, the cloud system ensures smooth and professional communication if you speak to a local client or discuss deals with an overseas partner.
2. A Cost-Efficient Solution for Better Communication Without Heavy Bill
Cost efficiency is another top advantage of Cloud-Hosted VoIP Phone Systems. Enterprises have to pay high costs for setup, maintenance, and long-distance calls. These advanced business phone systems operate through the Internet and do not need such expenses. Meanwhile, businesses can also eliminate the costs of complex installations and on-site hardware and enjoy high-quality reliable communication leaving funds to be invested in other important business areas.
3. A Scalable & Flexible Solutions That Grows with Your Needs
A business’s communication needs also evolve with its needs and time. Traditional phone systems may require significant changes to accommodate growth or costly upgrades to be compatible with advanced solutions. Cloud PBX systems offer matchless scalability to grow and expand. Meanwhile, businesses can easily add or remove users or extensions considering their changing needs. Even if they want to expand their team or plan to open new office locations, the system scales with needs ensuring your communication infrastructure stays aligned with your business goals. In addition, your employees can communicate whether at the office, at home, or anywhere in the globe promoting a hybrid work environment.
4. Access to Advanced Features Beyond Phone Calls
If you are considering cloud VoIP to make and receive calls, it offers more than that. The phone system contains advanced tools and features to improve communication and productivity. From voicemail to email and call forwarding to video conferencing, cloud VoIP provides tools beyond basic voice communication. Furthermore, features like automated attendants, call analytics, and CRM integrations allow companies to track performance, streamline operations, and ensure meaningful and professional interactions. It enables your team to stay connected through video conferencing and share ideas of common concerns.
5. Does Not Compromise on Reliability & Security
Thankfully, companies can avoid service disruptions that occur due to poor weather conditions and hardware malfunctions. Cloud VoIP phone systems are highly reliable systems designed to manage high call volumes without compromising on service quality. Moreover, VoIP service providers take data security seriously and employ advanced security measures to ensure secure communication and protect confidential information. They also offer advanced disaster recovery options and backup plans that ensure uninterrupted business communication even in case of system failure and power outage.
6. Facilitate Global Reach with Clear Calls
Cloud VoIP telephony system is a game-changer for companies that have international clients or branches. International call fees are high in traditional phone systems. Conversely, cloud VoIP allows the making of low-cost international calls in the same clear voice as local calls. This phone system opens doors for companies to expand their business operations, collaborate with international teams effortlessly, and engage with customers globally.
7. Eco-Friendly Communication Reduces Carbon Footprints
Positive environmental impacts are other benefits of investing in cloud-based VoIP. Companies can reduce their dependency on physical infrastructure like wires and hardware to reduce their carbon footprint by sifting on the cloud. Moreover, VoIP supports virtual meetings and remote work that lower the need for business travel and routine commuting leading to a more sustainable business model.
8. Remote Working Facilitate Employing Global Talent Pool
Earlier, traditional systems allowed for making and receiving calls on office premises. However, cloud phone systems enable users to call anytime and anywhere with the help of internet-connected devices. This facility is beneficial for remote teams that work from home, other regions, or time zones. They can access all the features of business phone systems which your in-house team benefits from. Additionally, they can collaborate easily through video conferencing and stay on the same page about customer and business issues. Companies can hire global experts and professionals to streamline their business communication.
9. Countless Integrations Improve the Service Quality
Businesses should invest in a phone system with advanced customisation and integration capabilities. Legacy systems had limited integration options, cloud phone systems enable companies to customize the phone system to meet their specific business requirements. Cloud solutions can be integrated with existing business applications and tools like CRM to ensure the delivery of seamless customer experience. Your teams can benefit from CRM data to offer personalised services to clients and customers.
The Bottom Line
Indeed, the cloud is the future of business communication, more than a technological upgrade. Cloud-hosted VoIP Phone Systems are transformative communication solutions that support scalability, growth, expansion, and innovation undoubtedly shaping the future of communication. They are easy to set up and use, offer countless integrations, and do not require costly equipment and hardware. Thus, if you want to take your business communication to the next level and need continuous support and maintenance to provide a seamless experience, choose CherryBerry UCM for smarter business communication.
