Traditional Phone Systems Versus Hosted Phone Systems

Should You Make The Switch?

The key to a good business is good communication. Part of this is the ability to get a hold of employees when they are needed. Traditionally, businesses would rely on a dedicated phone systems stored in-house that you could transfer a call to voice mail.  Could the option of hosted phones, help with your businesses communication needs? Should businesses use the cloud to handle business communication? Here’s why your company should consider the switch to hosted phone solution.

Why do Businesses use Traditional Phones with Landline Service?

A traditional phone system is currently the option for many small and mid-size businesses. Here the phone system is stored at the same location as the business. Calls are handled through a traditional phone company. It has been that way for years.  With technology advances is it still the best fit?  It also means that if the power goes out, you are usually not able to make calls or receive calls.   You are dead in the water until the power comes back up.  Every phone system has to be plugged into an electrical outlet.  If you don’t know how to log in to your phone system to create a fail over to a cell phone or alternate number you are dead in the water again.  By the way, most people don’t know how to log into their phone system.  Interfaces are usually old and require knowledge of old dos prompts.

The initial investment is costly with traditional phone systems, however, the monthly cost may be less overall. Your business may need to rely on a technician if something goes wrong. However, you may not remember your technician if the system is old or even know if they are still in business to service the phone system.

The High Price of a Traditional PBX Solution

Having a phone system on-site, also known as a traditional pbx or key system, used to be a necessary evil, and still is! It requires a larger investment on the behalf of the company and a higher initial higher cost. Not to mention, a technician would be necessary to install it. Should the phone system need maintenance, a technician would need to install updates or patch software. This could lead to additional fees.

Worst of all, an on-premise phone system has a single point of failure. This means that if your phone system goes down, your company may not be able to receive phone calls. When it comes to business, it’s important to make sure your business’s systems are still operational. During the busy hurricane season last year many small business were able to receive and make calls thanks to hosted phone solutions.

What is Hosted Phone System?

Hosted phone system is a cloud based solution for business communication. A cloud based phone system is one where the provider is responsible for housing the keys system or pbx. Providers are also responsible for maintaining and updating servers that run the phone system in the first place.

The Advantages of Hosted PBX

First of all hosted phone systems come with lower costs with regards to equipment and set-up. This makes it much easier if a business needs to relocate, a hosted phone system makes a transition much simpler. Not to mention, if an update or patch needs to be applied, it can be done by the provider. There is no need to have an outside technician come to the office.

Most importantly, a Hosted phone system solution improves communication. This is because it provides your workforce with unified communications features, mobile integration, and the ability to get to connect with employees faster. According to Information Week, 62% of companies say that employee communication has improved since switching to a hosted phone system..  Also, the loss of Internet or catastrophic event has less effect on your business’s operations. Unlike an on-premises phone system, it isn’t a single point of failure. A hosted phone system relies on safeguards and the ability to run on redundant or back up  power sources.

One disadvantage is the need for a dedicated broadband connection. If your location isn’t wired for high-speed traffic, you’re hosted phone system will hardly live up to its full potential.  If you have access to a Comcast, Spectrum, Cox, ATT Fiber, or Verizon FIOS service you should be good to install a hosted phone system.

In Summary

Hosted phone systems are more reliable than what was offered just a few years ago.  Many of your telephone hardware providers have moved most of their production to creating hosted or voip handsets and services.  Many of your broadband companies have figured out how to handle voice over the internet better than just a few  years ago. The jittery or echoing on voip calls has pretty much disappeared.  Good call quality abounds with most if not all hosted phone systems now.

If interested in learning more please do not hesitate to call us to discuss.

We can be reached at (678) 489-7916