In many ways, traditional landlines are starting to fall short of business needs. Not only are they less flexible due to being wired, but they’re also more expensive to maintain. For small businesses, switching to a cloud-based phone system can lower the cost of local calls by up to 40%. They can also be integrated with a variety of productivity tools, can be used anywhere with Wi-Fi access, and support remote staff. While landlines may still work for some, there are many reasons to consider switching.
What Is a Cloud-Based Phone System?
A cloud-based phone system is a telecommunications system that lets users make and receive phone calls online. This uses Voice over Internet Protocol (VoIP) technology to convert voice into data that is then transmitted online. These systems are more flexible than traditional landlines, as they can be connected wirelessly through Wi-Fi throughout a building.
How Cloud-Based Phone Systems Work
A cloud-based phone system lets users make phone calls over the internet rather than using a traditional landline. Since it uses VoIP to turn voices into digital data, which can travel over the internet to connect callers, calls can be made from almost any device. That includes desk phones, computers, mobile apps, and more. This gives people the flexibility to not only work from the office but remotely, too.
The system’s call management happens online through something called Cloud PBX. This is like a virtual operator that handles features like call routing and voicemail, without needing large equipment in the office. SIP trunking is another key part. Put simply, it links the system to the internet, so calls can reach the right person no matter where they are.
With cloud-based systems, businesses can also get useful tools like auto attendants, which help direct calls and ensure that customers reach the right department or person quickly. This setup combines calls, video, and messaging in one place, making calls flexible and easy to manage, making it a good fit for many businesses today.
The Challenge of Traditional Landlines
Traditional landlines can be challenging for businesses to manage. They can become costly to scale up because they rely on physical phone lines and hardware. Additionally, troubleshooting issues can be expensive, especially in older office buildings that may a mixture of older and newer wiring.
Landlines also limit flexibility. Unlike internet-based systems, they keep employees at their desks, making hybrid remote work more difficult. They also don’t easily connect with digital tools like video calls, messaging, or file sharing, which many businesses rely on today. That means staying with landlines is potentially more expensive, and digital transformation can be prevented by taking advantage of tools that integrate with cloud-based calling.
Choosing a Cloud-Based Phone System
Choosing the right cloud phone system can improve how your team communicates and keeps in touch. A cloud voice solution manages calls over the internet, differentiating it from a traditional on-premises PBX system. Here’s a simple guide to help you pick the best system for your business.
1. Match the Phone System to Your Business
Think about your business size and the features you’ll actually use. Small businesses often do well with essential features like call forwarding to direct calls or voicemail-to-email to get voicemail messages sent directly to email. Larger companies, or those with remote employees and teleworkers, might need extra options. For example, CRM (Customer Relationship Management) software integration can help teams manage customer info more quickly.
2. Consider IT Support Needs
Cloud phone systems are often simpler to manage than older systems, but you’ll still want to think about how much IT support you’ll need. Smaller businesses with few IT staff may wish for a provider known for solid customer support, while larger organizations with IT teams may prefer more customization options. A reputable provider with reliable support can help keep everything running smoothly.
3. Look for Helpful Features and Integrations
Check for features that make it easy to stay connected. Voicemail-to-email helps you respond quickly by sending voicemail to your email inbox, and call forwarding can route calls to the right person, even if they’re away from their desk. For businesses with remote employees, systems that work with CRM software and collaboration tools can help keep everyone on the same page.
By considering your business size, IT needs, and the tools that would most help your team, you can find a cloud phone system that’s easy to use, reliable, and a good fit for your business.
Comparisons with Other Phone Systems
When considering a cloud-based phone system, it is helpful to look at both monthly and setup costs. Most providers charge a monthly fee for each user, with discounts if you choose an annual plan. Some systems may also require one-time costs, like VoIP adapters, if you want to use older phones. Since the provider usually takes care of maintenance, maintenance costs are generally low.
It’s also good to know about any extra usage-based fees. Local calls are often included, but there may be added charges for long-distance calls or extra local numbers. Some providers offer flexible negotiable rates and may accept competitive bids if your business has unique needs.
Lastly, make sure the plan includes the features your team will use. Basic plans usually cover the essentials, while advanced features like CRM integration or video conferencing might only be part of higher-tier or enterprise plans. You can keep costs in line with your budget by choosing features that suit your needs.
Phone System Cost Considerations
When choosing a cloud phone system, weighing the costs involved is important. Here’s a quick breakdown to help you understand where expenses might come up:
- Per-user pricing model: Most providers charge a monthly fee per user.
- Annual discounts: Some plans offer lower rates if you sign up for a year or more.
- Upfront investments: You may need initial equipment, like VoIP adapters if you’re connecting older phones.
- Usage-based fees: Certain services, like long-distance calling and extra local numbers, may come with additional charges.
- Maintenance costs: The provider usually handles maintenance, helping keep these costs low.
- Advanced features: CRM integration, video conferencing, and other options may only be available in higher-tier plans.
- Negotiable rates: For unique needs, some providers offer flexible pricing or accept bids for larger contracts.
By understanding these cost factors upfront, you can find a cloud phone system that meets your budget and supports your business needs without unexpected surprises.
Scalability and Remote Working
Cloud-based phone systems help businesses grow quickly and support remote teams. Since they use the internet, adding or removing users as needed without any extra equipment is simple. That makes it simpler for a business to scale up as it grows, keeping costs low and setup simple. Cloud phone systems are a flexible, affordable choice for companies expanding into new areas or hiring more people.
These systems also make remote work more accessible. Features like call forwarding and call waiting keep remote employees connected, no matter where they are. Integration with tools like CRM software and Google Workspace helps teams stay organized and access customer data from anywhere. For example, voicemails can go straight to email, so employees don’t miss important messages. Advanced features like machine learning can even create post-meeting notes so nothing important is forgotten.
Security Concerns for Cloud-Based Phone Systems
Cloud-based phone systems give businesses flexibility, but security is critical to keeping calls and data safe. Since these systems use the internet, extra steps should be taken to prevent unauthorized access and protect information.
- Voice Data Encryption: This scrambles voice data, keeping calls private as they travel over the internet.
- SIP Trunk Endpoint Security: Securing SIP (Session Initiation Protocol) endpoints protects the connection between the phone system and the internet, helping block hackers from accessing the system.
- Firewalls and VPNs: Firewalls act like a barrier to keep out threats. A Virtual Private Network (VPN) adds another layer of security, creating a safe “tunnel” for calls and data.
- Suspicious Activity Monitoring: Many systems monitor for unusual activity, like sudden increases in calls or unexpected system outages. Toll fraud detection can spot unauthorized calls to prevent high costs.
- Password Updates and Business Continuity: Regular password updates help keep the system secure. A business continuity plan ensures that calls and data stay protected during an outage or security breach.
Partnering with a trusted service provider can help protect communications and data. By using extra security measures, cloud-based phone systems offer businesses an effective and affordable way to manage their calls.
