Are you planning on installing or updating your business phone system? Today’s market has so many choices that it’s easy to get overwhelmed. To begin, learn to distinguish between a traditional phone system (also known as analog or on-premise) and a cloud phone system (also known as hosted or VoIP phone systems). Before capitalizing on any of the available phone systems, you must consider the following:

Is it better to have a softphone or a desk phone for my employees?

What features do I need for my business phone number?

Will I allow my employees to work from home?

Which deployment model should I choose: on-premise or cloud-based?

Besides that, according to a Google survey, nearly 70% of mobile users who search for a business use their phone’s call feature to contact the business. In addition, only around 8% of homeowners have a landline, while 47% use a mobile phone. So, for your local or global company, you must implement a reliable phone system. Before you make any decisions, it’s important to identify the differences between cloud telephony and a traditional phone system.

What does Cloud and Traditional Phone System Mean?

So, what is the concept of a traditional phone system? In simple terms, a traditional or on-premises phone (i.e., landline phones) system is one where the hardware and software are installed in the customer’s building. A fixed landline owned by a telephone company is needed. You often maintain a dedicated team to answer calls and direct callers to the appropriate individual. It requires that you keep track of your maintenance schedule for every location where you do business.

What exactly is a “hosted” or “cloud-based” phone system? Cloud phone system is a voice and messaging service that allows you to communicate with your customers using a remotely hosted device and a virtual phone number. It is one in which the hardware and software are not installed on the customer’s premises. A service provider “off premises” provides the hardware and software. It outperforms traditional business phone systems because it uses the internet to make and receive calls. Cloud phone technology allows small and medium-sized businesses to have a state-of-the-art phone system without the investment in telephone equipment.

What are the Benefits of Cloud Telephony Over Traditional Phone Systems?

Cost-Efficient – Saving money is probably what prompted your interest in an IP-based phone system in the first place. Switching to a cloud-based telephony system will save you hundreds, if not thousands, of dollars. You don’t need to invest thousands on hardware to set up a business phone network in several locations or hire staff to run and manage it. All you’ll need is an internet connection, a router, and some headphones to get started. You can also use smartphones and tablets to remain connected with cloud telephony. 

Scalability – As a business grows and demands more from its phone system, the total number of lines can be increased without wasting time or money. Setting up a business phone network is a time-consuming and tedious operation. You purchase the equipment and then wait for your telecom service provider to dispatch a crew to mount the cables. All you have to do with cloud telephony is contact service providers like the Phone Experts, who will set up the system for you in no time. Landline-based phone systems can’t do it as quickly or as cost-effectively as VoIP systems can.

Flexibility & Advanced Features – IP phone systems have a lot of versatility in addition to scalability. Most have a comprehensive range of advanced features. They can give you access to almost any VoIP function you might need. With a cloud-hosted phone, you can now take advantage of all of your service provider’s functionality at no additional expense. Some of these features are:

  • Advanced call forwarding
  • Automatic call recording
  • Custom caller ID
  • Voicemail to email or text
  • Multi-level auto attendants
  • One-click conference calls
  • Call queues with on-hold music
  • Call analytics and logs

Cloud phones may also attach to two separate on-site Internet circuits, which is useful for backup purposes.

The Risks of Using Cloud-Based Systems

Downtime – When the power goes out, so does your system’s access. Downtime is more than a source of annoyance for any company that depends on a phone for marketing, production, or customer service—it’s a significant loss of revenue. Advanced features on an IP phone device, on the other hand, react immediately to an outage. Small outages can be rendered almost unnoticeable to clients and associates by setting up call forwarding to mobile phones or auto-attendant backups. Cloud-based services can quickly be migrated to a wireless backup device in the event of a significant failure, keeping your company going as long as the outage lasts.

Available bandwidth – Some cloud-based systems rely solely on local (line) and wireless Internet connections. It can be difficult or impossible to carry on a voice conversation, let alone hold a video meeting when the link is unreliable or weak.

Security risks – Security is one of the most pressing issues. The protection of hosted telephone networks is in trouble. Hackers can easily obtain information about your phone system, including all of its devices, and gain access to it. Service or toll fraud is the most common type of telecommunications security problem. A cyberattack, financial problems, or sheer carelessness may all have a direct effect on your company’s phone system, and you’ll be helpless to fix it. 

Which One is the Right Fit for Your Company?

As you might have guessed, there isn’t a clear answer. It all boils down to what will work best for your business, its type, your expectations and requirements, and, of course, your internet connection! When considering the benefits and drawbacks of a cloud phone system, consider your current and future needs. You must consider where you want to be in the coming year or two. If you’re persuaded that cloud PBX is the best solution for you, you can relax knowing that migrating your phone system to the cloud is easy. You don’t have to go it alone with this update.

We, at the Phone Experts, can assist you with all types of Business Solutions. Even if you have the best hosted PBX provider in the world, having a backup plan is still a good idea. Whatever happens, an easy, cost-effective solution like Phone Experts will keep your business connected.

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