On-premises telephone systems have been the staple of all business communications for years. However, if you haven’t started switching to cloud-based phone systems, now is a good time to start, because premise-based services won’t be available for much longer. Panasonic announced that its PBX system will be deactivated in 2023.
It’s understandable that your company may be hesitant to switch to a new phone system. However, there are many great benefits to switching to cloud-based systems. Here’s what you need to know about on-premises versus cloud-based phone systems for your business.
Why are building-based systems disappearing?
Premises-based telephone systems became very popular in the 1990s. These systems were equipped with features that allowed businesses to conduct on-site communications, including making, receiving, and transferring calls. Using these systems has made it easier for companies to communicate with customers and team members within the building.
Common features of headquarters-based systems include automatic call formation and routing. Calls are automatically queued and distributed to the pre-determined route using the PBX system. The PBX host system is located in one place, storing all the information in the building itself.
While these features and functions may seem essential, building-based systems are becoming outdated. Technology has advanced, making the system obsolete. Automated call routing and call routing are available via cloud technology, plus great additional features. Newer systems have better capabilities, including working and accessing information off-site.
Market trends predict that cloud-based host systems will soon be the best, if not the only, phone systems available. In fact, most on-premises-based systems will be deactivated within the next few years, encouraging customers to shift to hosted cloud-based systems.
Benefits of cloud-based systems
The popularity of cloud-based systems is not without good reason. As we touched on earlier, there are a lot of benefits to switching to cloud-based systems.
Remote communication capabilities
COVID-19 lockdowns turned the business world upside down when many employees began working from home. Businesses have had to quickly learn how to adapt to remote work. Cloud-based host phone systems have been the most obvious solution for communication while working remotely.
Cloud-based systems allow the user to make and receive phone calls from anywhere, not just physically in the business office. Workers can use these systems via their desk phones in the office. They can also easily download a computer or phone app that enables them to communicate off-site.
Accessing Information Off-Site
In recent years, remote work has become increasingly popular. Cloud-based systems allow employees to access information stored off-site. Everything, including contacts and call data, is stored in the cloud and can be accessed anywhere with WiFi. This makes it very easy to monitor calls, report information and access call logs without having to be in a confined space. Your information is now available to you around the world.
Less expenses
With cloud-based systems, there are few additional components needed to purchase, making them a much cheaper option. Cloud-based systems also require little maintenance and do not have complex hardware components.
In contrast, all building-based systems come with very few overheads. Besides having to purchase the system itself, companies will need to purchase the necessary equipment for actual operation. Phones, routers and proper training cost more.
In addition to the additional initial outlay, building-based systems require ongoing and costly maintenance. Telephone systems in a building consist of a wire or IP system. These components require regular maintenance and costs can add up quickly.
Easier setup
Cloud-based systems use a VoIP adapter and a robust broadband connection. Setup requires very little effort – just make sure you purchase both devices and set them up correctly.
On-premises-based systems require much more setup and are notoriously difficult to install. Multiple components, including the physical PBX system, IP system, wiring, and desktop phones, must be installed and paid for. This setup takes a significant amount of time and money, and is much more than a cloud-based system.
Preferred by customers
The phone systems in the building are a fairly basic line of communication. Customers can call your company number and be directed to the correct person or office. This communication works but is not optimal for customer satisfaction.
Hosted cloud-based systems have the option of creating new ways for customers to communicate with the company. The ‘Chat with Us’ function allows an open online line of communication, where customers can communicate with a member of staff without having to call them. SMS options are also available with a cloud system, which is another way to provide customers with access to support. Cloud systems are much preferred by customers.
What do I do if I’m currently using a building-based system?
Switching to a new phone system can be scary, especially if your company has relied on an existing on-premises system for years. However, with advances in technology and the ease of being able to work remotely, a cloud-based system is the best option for the future of your business.
Fortunately, because cloud-based systems don’t require the installation of wiring, IP systems, or other complex hardware, installation is easy.
At Telco Data, switching to a cloud-based hosted system only requires connecting with an expert agent. Schedule a consultation today, and we’ll give you a quote and tell you anything you need to know about making the switch.
Contact us via our contact form or by calling 512-977-0505. Your new cloud-based system will increase customer satisfaction, make communication easier for your employees, and reduce company costs!
