There is lots of talk within the POS community in regards to cloud-based vs. legacy or local POS systems, so we have decided to create a guide that gives you all the facts, insights and information on the differences, benefits, and makeup of each type.
What Is A Cloud-Based Phone System?
Cloud-based, hosted or VoIP are some of the names that you might come across when looking at Cloud phone systems. Essentially they all share one common quality – there is no landline needed for operation.
Cloud-based phone systems are new, fresh and exciting for businesses in varying industries. They allow you and your employees to communicate internally and externally from anywhere you like.
Cloud-based phone systems came about to help make business operations smoother and reduce costs involved with communication. In the past, phone systems would cost thousands of dollars to set up and maintain each year, not to mention the lack of backup should the phone lines go down. Cloud systems remove this risk, reduce costs and make setting up a new system easier than ever.
Because we live in a web-based and app-filled world, implementing a cloud phone system makes the most sense. They are cost-effective due to being hosted remotely, rather than in the traditional way with a PBX box located in every office, and all you need is a quality broadband internet connection and a compatible device or handset to get started.
There is no need for a landline with cloud-based systems, saving thousands on phone bills and international call fees each year.
This type of phone system also has a range of key areas you need to be aware of:
- Cloud-based means no local server, just like emails sitting in the cloud, photos syncing between your accounts and ensuring everything is backed up on your phone, the cloud is forever expanding and storing your phone call data and features.
- Overhead costs are less as there is no need for individual lines to be set up.
- You can add or remove handsets as regularly as needed without set up times or costs to consider, great for rapidly growing businesses.
Hybrid Breeds
Changing what your business knows can sometimes feel like a bigger task than it really is, that being said, there is a nice transition solution that can help your business move from the traditional phone system through a landline to a more VoIP/Hosted system that is modern and broadband-based. This is known as a hybrid phone system.
Here’s how it works:
- Start by taking a smooth transition by implementing a VoIP solution that allows you to keep all your existing hardware and handsets.
- This allows you to continue taking calls without interruption through enabling VoIP to work through your system.
- When you are comfortable you can take the next step which is to move away from the in-house PBX box to a cloud-based system, once the migration is complete you will no longer need your traditional phone system and it can be deactivated.
The benefits:
- No rush and minimal risk – the new VoIP system will work with your existing hardware and software, meaning there will be no interruptions to communication lines.
- Money saved on phone calls – the internet sends the call rather than the landline, meaning no more large phone bills.
- Large call volume handling due to SIP trunking technology.
Traditional Phone Systems:
Traditional analog telephone systems use the Public-Switched Telephone Network (PSTN), which is a collection of fibre cables, copper wires and sub-sea cables that have nothing to do with the internet. A set of standards and protocols called the Integrated Services Digital Network (ISDN) is used to create a dedicated connection between users for the duration of the voice call. This can be limiting and in a few years will most likely be phased out and obsolete.
Moving to a digitally transmitted phone call system like VoIP is important to stay up to date with modern technology and in allowing your business to grow.
The Wrap Up
As you have read, cloud-based phone systems are the future of all business communication. Although phone calls are still around, having them transmitted digitally is important for the future, for reducing business phone call costs and increasing customer satisfaction going forward. Take a look at this guide to help you find out which system is best for your business.
