Cloud Based Phone System For Business: Pros And Cons

A crucial element for the success of any business is having an efficient and dependable communication method. A cloud based phone system, also known as internet calling or Voice over Internet Protocol (VoIP), has gained immense popularity due to the widespread adoption of cloud storage in various business operations.

However, it’s important to note that they might not be the ideal choice for every business. Continue reading to determine if this technology is suitable for your needs.

What is a cloud phone?

A cloud phone system, or cloud-based phone, is a service that enables you to make phone calls using the internet rather than relying on traditional analog phone lines that use copper wires or optical fibers for connectivity. Cloud phones are hosted in secure off-site data centers.

These phone systems can be used with a range of devices, including traditional phones with adapters, smartphone apps, computer software, or VoIP-enabled phones. Instead of maintaining software through a server, such as a private branch exchange (PBX) on your premises, all your information and data are stored in the cloud. This approach can help you reduce expenses associated with maintenance and updates since all necessary adjustments can be easily made in the cloud.

Difference between Cloud Phone System and Traditional Phone System

Traditional telephone systems function by connecting to the public network, utilizing methods like the Integrated Services Digital Network (ISDN) or the public switched telephone network (PSTN) to establish calls. In more recent configurations, traditional phones can operate using Voice over Internet Protocol (VoIP), which routes phone calls through internet connections.

On the other hand, cloud phone systems take this concept a step further. These systems don’t rely on traditional networks at all. Instead, they route voice communication through a third-party-hosted internet infrastructure. While traditional phone technology can still be used, it’s not mandatory. Any computing device can make use of cloud calling for voice communication.

Typically, cloud-based voice services are more cost-effective than traditional phone lines or VoIP because they can often be bundled with additional cloud services. Cloud calling represents a budget-friendly option for service providers.

How to Determine If Your Business Needs a Cloud-Based Phone System

Cloud-based phone systems are a cost-effective and streamlined alternative to more hardware-intensive traditional phone systems, but they may not be the right fit for every business. To decide whether a cloud-based business phone system is suitable for your needs, consider the following factors:

1. Equipment: If you’re starting from scratch or prefer to minimize equipment, cloud phone systems are an excellent choice. They operate seamlessly on desktop computers or mobile devices, reducing the need for additional hardware. However, if you already have a substantial amount of traditional phone system equipment that you don’t want to go to waste, check if it’s compatible with modern cloud systems before committing to a provider. VoIP telephony Canberra is an easy to use platform.
2. Costs: Cloud phone systems eliminate installation and maintenance costs associated with many traditional phone systems. Nevertheless, some cloud-based phone systems offer a wide array of features, such as video conferencing and AI sentiment analysis, which come at an additional cost. Before making a decision, carefully assess whether your business truly requires these extra features. Some cloud phone providers offer more basic versions that may better suit companies in need of fundamental phone services.
3. Reliability: Cloud-based phone services rely on a stable and consistent internet connection. If your internet connection is unreliable, a cloud phone system might not be practical for your business unless you first upgrade your internet package to ensure reliability.
4. Data Management: With any cloud service provider, your data is stored and managed by a third-party entity rather than on local servers. This can be advantageous for small businesses lacking dedicated IT resources. However, for businesses that require full control over their data, it may be a drawback. Consider how your business uses its data and carefully assess the security practices of any provider you choose to work with.

Pros and Cons 

Cloud-based phone systems are gaining popularity as businesses embrace digital and internet-based services. However, it’s crucial to carefully evaluate the pros and cons of these systems before determining if they’re the right choice for your company.

Pros of Cloud-Based Phone Systems:

1. Cost-Effective: One of the primary advantages of cloud-based phone systems is their affordability. Unlike traditional phone systems that bill for call minutes and additional services like voicemail or auto-attendant, cloud-based systems typically offer these features as part of a single monthly fee. You only need to cover your internet connection costs.
2. Reliability: Cloud-based phone systems are known for their reliability. They are hosted in multiple locations, ensuring that your communications remain uninterrupted even if one server experiences issues. This geographic redundancy minimizes service disruptions and downtime, which is critical for businesses that rely on constant communication.
3. Flexibility: These systems provide remarkable flexibility, making them ideal for businesses with remote employees, frequent travelers, or those looking for enhanced international reach. For instance, calls can be routed to your VoIP-enabled device, regardless of your location, as long as you have an internet connection. This means that even if you’re on the move or need to maintain a strong presence in multiple countries, you can easily manage your communication needs. Consider the example of a company using a USA virtual phone number, which allows them to establish a virtual presence in the United States and handle calls seamlessly from anywhere in the world.
4. Scalability: Cloud-based phone systems offer scalability for growing businesses. You can easily add phone lines, extensions, and advanced features using a cloud management system, without the need for professional installation or additional equipment. Updates and maintenance are conveniently handled in the cloud, saving time and money while avoiding communication downtime.

Cons of Cloud-Based Phone Systems:

1. Dependent on Connectivity: Cloud phone systems rely on internet connectivity. If your internet service is unreliable or frequently experiences drops or failures, a cloud-based system may not be suitable for your business. A consistent and strong internet signal is essential for the proper functioning of these systems.
2. Security: Cloud services are managed by third-party providers, so it’s crucial to understand their security practices. Without proper precautions, cloud-based systems can be vulnerable to malware and hacking. Ensure that your internet connection is secure, and your cloud system provider has robust security measures in place to protect your data.
3. Sunk Costs: If your business already possesses significant traditional telephone equipment, the expenses associated with purchasing adapters to convert them into cloud-enabled phones or acquiring new VoIP phones can be substantial. Assess the equipment you currently have and determine whether it makes better financial sense to upgrade your existing system or opt for an entirely new service.

Conclusion

Businesses seeking cost-effective and streamlined phone solutions, without the complexity of traditional hardware, can find value in adopting a cloud-based phone system. To fully leverage cloud phone technology, all you require is a dependable internet connection and a top-notch and cheap business phone service provider to ensure exceptional service.

Once your cloud-based phone system is in place, you’ll enjoy the convenience of making clear, high-quality calls through a user-friendly software interface that your employees will appreciate.