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August 28, 2017 Categorised in:

The Benefits of Switching to a Cloud PBX Phone System

Learn more about the features & costs of cloud PBX vs on-premise phone systems.

Many businesses globally have shifted to some Cloud PBX service. In this fast-paced business environment, cloud-based phone systems offer many excellent benefits to enhance collaboration and efficiency, reducing overall costs and helping companies to succeed.

Today we are talking with David Colletta, Managing Director of Prosum about the benefits of switching to a cloud PBX phone system.

Now David, traditionally companies have used on-premise phone solutions. However, now, we see a considerable shift to the cloud. Tell us more about the benefits of switching to a cloud-based phone system?

Listen to the interview:

Read the interview below:

David, can you tell us more about the benefits of switching to a cloud-based phone system?

David: Yeah sure, so we’re just finding as we get better access to the internet, the shift to cloud PBX makes sense. We are encouraging customers and recommending that they migrate from on-prem to cloud, to take advantage of the benefits cloud telephony brings.

Caroline: And what does that mean for businesses today?

David: Well, we find that cloud telephony has simplified voice in general. If you think of the cloud, there’s Amazon; there’s Microsoft. The cloud telephony enhances and compliments that experience. When we are talking about the buying experience, we find that licencing and features are easily understood, the pricing is quite easily understood too, which is based on a monthly per-user fee. Businesses of all sizes whether they are one, or whether there’s many, could be hundreds, could be thousands, they all now have access to the same powerful features and functionality right across the board.

Additionally, cloud telephony, it removes a lot of the complexities businesses had to endure with on-premise telephone systems, and these are things such as purpose-built cons rooms. The provisioning difficulties that are faced with on-premise deployments and as well as the ongoing managing updates, patches, etc. So, there are a lot of benefits that are being brought into the cloud that businesses should start considering to move towards.

Caroline: And now medium-sized businesses or businesses of all sizes have access to, what more prominent companies have access to and it is a lot more affordable. Is that correct?

David: Yes. The same features sets are available right across, whether you are a smaller organisation, medium, or enterprise. The features are all available to all size businesses. So, that’s the beauty of cloud telephony, all that investment, all that hardware, all that infrastructure is ready for any type and any size business to take advantage.

Caroline: Wow, it levels the playing field as well regarding communication for businesses, doesn’t it.

David: Yeah. You know, these are the things cloud does, and it is now available with cloud telephony. So, it makes sense for organisations to take advantage of this.

Caroline: You mentioned before the monthly user fee, now I could imagine this would be attractive for businesses in terms of being more cost-effective. Can you tell us a little bit more about that and cost structures as well?

David: The cost is competitive. If we were to consider the buying cost over three to five years, you would find that if not better than on par with the investment, a lot of organisations have had to pour into on-premise systems. We take a look at the initial capital outlay, we have them look at the ongoing maintenance that we would have to pay with on-premise telephone systems usually, the constant updates, the time that staff have had to invest into deploying, managing the solutions, the call rates that you typically would get with your traditional telephones. When you add all that up by the course of three-five years, we find that when you go cloud, your savings could be anywhere from 20 to 30 per cent, much lower than the on-premise solution.

Caroline: Wow, that’s a significant saving for businesses.

David: Absolutely.

Caroline: Yeah, now what are the benefits of switching to a cloud PBX system?

David: So, there are many advantages, and we can talk, literally, all day, but I’ll name the few:

1 – Redundancy and Resiliency.

The first one that comes to mind is redundancy and resiliency. Now that has typically been reserved for more the large scale type enterprise businesses, where they have to invest a considerable amount of money to get an on-premise solution in design, and in an environment that could provide the redundancy and resiliency. Now when we’ve moved to cloud telephony, well that’s already there, so your small business down the road only has two handsets, all of a sudden has the same level of functionality, resiliency, redundancy that someone of the size of thousands of users would have. So, you know, that’s a big win, because if you think about businesses if you’re reliant on voice, your phones go down, your only option is to jump on your phone.

Now, if it is a situation where there has been a disaster or something, you know, that could cost businesses thousands of dollar. So, we’re able now to take advantage of re-routing a lot of the traffic back in the data centre to be able to accommodate that redundancy and resiliency all for about the fraction of the cost of that small fee you are paying per month.

The other benefit that I think is a real enhancement with cloud telephony is scalability.

2 – Scalability.

People tend to take these for granted a little bit, but what on-premise does well is scale. So, we’re investing a lot of money in hardware upfront. What it doesn’t do too well, though, is scaling back. What happens if there’s a downturn? How do we scale back the hardware that was invested? Well, that’s impossible, because you’ve already purchased that. Whereas with cloud telephony, well if you find there are certain months that you don’t need the licencing, well you don’t pay for them, it’s easy as that. Scalability – I think it’s quite a valuable thing to have with cloud telephony.

3 – Work from anywhere.

Well, as you know, nowadays everyone’s trying to work from home, or they might want to work somewhere when they take a vacation. That functionality already exists with cloud telephony. To get the same functional features out of on-prem would cost you thousands of dollars to try to get a similar outcome.

The ability for the ongoing management, which is all taken care of. It’s all fully managed. On-premise telephone systems, you’re relying on either on the partner, there is an investment in staff, to be able to handle the solution from an ongoing perspective. Whereas with cloud telephony, that’s all taken care of, nothing to worry about, all the patches and updates are pretty much done behind the scenes at a time that doesn’t impact the business.

4 – Cost Effective.

And finally, I can say it’s the cost. We’ve already touched base on the price, which is typically lower. Worth considering for any businesses out there to evaluate any cloud offering and match it up with what the investment would be for an on-premise telephone system. And I’m quite confident you’ll be pleasantly surprised that cloud telephony will be in your favour of being up with on-premise phone systems.

Caroline: They’re great benefits. Thanks, David.

You know what I hear the benefits of the cloud-based PBX system, and like anything, it’s an evolution. As markets change, as innovation comes into play as we look at innovation, we’re always improving the service offerings and the products available. And, I think cloud-based systems have just moved into that space of delivering something that we wouldn’t have necessarily had access to before, and it’s far superior to legacy systems and what’s been available to businesses previously in terms of their office phone systems.

David: Yeah, and that’s the beauty when the technology is built for firstly a cloud offering. Secondly, for innovation, you find the enhancements, and the ongoing features and functionality gradually are always released in tune with what businesses are demanding are required to operate and what companies must be competitive with other organisations. The alternative to going with on-premise systems, it’s always a matter of initiating that step as opposed to proactive with cloud PBX. There’s a little bit of reactiveness happening with on-premise telephone systems where you’ve got a product, you’ve invested in a product, it’s sitting in your comms room, but does the business know what the next features are that are coming out? Does the business have to initiate that conversation with the vendor? That’s not necessary with cloud PBX. You get all the features always coming out. You don’t need to worry about what new features need to be implemented to be able to take advantage of the latest technologies out there.

Caroline: And a key to what you’ve just mentioned is also the businesses are demanding this evolution too, so that they can operate more efficiently and more cost-effectively. So, this is a perfect solution for that.

David:  Absolutely, and as we already mentioned if a business is at a point where they are comparing telephony platforms out there, (and we’re recommending this), they should consider migrating to cloud from on-prem, purely to take advantage of these benefits. And maintain that competitive edge within their landscape.

Caroline: Thanks so much, David, for sharing your expertise with us.

David:  It’s a pleasure, Caroline.

At Prosum, we provide communication and technology solutions to businesses of all sizes, across all industries, right around Australia. With 50 years of expertise, no one knows technology and communication like Prosum.

If you would like to know more about how you can go about upgrading your office phone system and improve your business communications call us today for expert advice – call 1800 007 229 or visit www.prosum.com.au we’d love to hear from you.