Cloud Telephone System vs. Traditional Phone System

Should you get a cloud business phone system? Or stick to the conventional telephone setup that your company is already juggling to manage? In this age when technology is developing faster than ever before, a robust cloud telephone system is vital for a business. It is interesting to know that 74% of companies say that cloud phone systems are their most urgent investment priorities. Also, that the market size of cloud based telephone is estimated to grow at a CAGR of 12% from 2020 to 2025. These facts make it clear that cloud phone systems are a preferred choice for businesses of the modern world.

Comparison : Cloud Telephone System vs . Traditional Telephone System


In this post, we will understand the reasons for what makes cloud based phone systems a better replacement to traditional phone systems.

Human Resources

It might appear too blunt, but traditional phone systems were a complete mess. Hundreds of wires tangled to form bunches, huge hardware devices that occupied a significant area of the business’s premises and a fixed team of IT personnel with comprehensive knowledge to install the telephone system. Looks like a lot, doesn’t it? Well, when you move to a cloud based phone system, all this mess simply vanishes. Since these phone systems are software based and the servers are run and maintained by third-party service providers, businesses are simply left with peace of mind.


Traditional telephone systems tied employees to their workstations in order to take calls and do their work. But today the scenario has changed in a whole new way. Many employees and companies prefer remote working due to which they want a phone solution that can meet their demands of mobile working. As per stats, Cloud telephone systems are just perfect for such a scenario because these systems can be accessed on most of the internet enabled devices.


It is obvious that in order to get a solution, a business has to invest a certain amount of money. But when we consider the case of traditional phone systems, this investment appears to be quite big which can be a problem for small to medium sized businesses as they have limited set of resources. However, cloud based phone solutions hosted by third party service providers eliminate the need of burning a hole in the pocket. As per statistics, cloud based phone systems can trim down initial cost for startup businesses by up to 90%. A business can simply subscribe to a suitable plan offered by the service provider without bearing the cost of the whole phone system setup.


Growing and shrinking happens in every business. A solution that lets you scale up and down instantly can help a lot in saving your financial resources. Cloud based phone systems allow easy and quick addition and deletion or agent extensions though the software. However, in the case of conventional telephone systems, this process was quite complex and time consuming.


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Traditional business Phone Systems offer a limited set of communication features. However, in order to stay abreast of the ongoing competition in the market, a business needs a phone solution that can fulfill various communication needs through a single platform. Cloud telephone system offer an array of advanced communication features such as IVR, Voicemail, Business phone numbers or DID Numbers, Call Reports, Call Recording, Working Time Management, and a lot more. With all this, a business does not need to rely on multiple apps to accomplish its communication goals and thus workflow becomes much more smooth and seamless. 


When it is about control and ownership, traditional phone systems offers better leverage. As the server is installed in the business’s own premise, the installation, handling and maintenance is borne by the business itself. Having complete server ownership gives a greater degree of control to the owners. However, taking in consideration the cost and various other factors, it appears that on premise servers are suitable for large corporations who are in need of complex solutions and can afford huge investments. For small to medium sized businesses, a reliable and feature-rich cloud based phone system offers the best value.


If we consider the traditional telephone systems, business continuity was a lot more difficult to achieve. It is because failure or fault in the hardware due to environmental or any other reason took time and effort for its restoration. A single fault in the system would bring down the entire telephone system and the business has to wait for the manual resolution by the IT team.

However, in the case of cloud based phone systems, redundant servers are maintained by service providers in different locations across the globe. This means that in case of any type of fault no matter the reason, the phone system remains up due to availability of multiple backups. While this ensures that a business can achieve maximum uptime, it also adds to the reliability of the business.

Customer Service

No business can achieve success if its customers are not satisfied and happy. Having the most skillful employees along with great services will do no wonders if your customers are not having a good experience with your service. Since communication is the primary tool that lets you connect with your customers and prospects, it is important to make sure that you have effective communication tools at your disposal.

Cloud telephone system offer valuable tools like Multi-level IVR, Voicemail, Intelligent Call Routing, etc. that let employees do their job quickly, easily and more efficiently. Statistics reveal that cloud phone systems can help save 32 call minutes per day. These factors contribute a lot towards productivity, performance and satisfaction of the employees, and ultimately leads to better customer service. Remember, happy employees make happy customers!

Traditional phone systems are a thing of the past. Cloud based phone systems are new and updated. When it is about choosing between the two, a business should certainly go with the cloud telephone system to reap the maximum benefits of cloud communication. To get answers to your queries about business phone systems, you can get in touch with us.

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