Why cloud-based telephony is good for business

In recent years, cloud-based telephony systems have taken off.

Businesses now recognise that cloud-based systems have all of the features of tradition phone systems with additional benefits, including:

  • Lower cost of ownership
  • No need for a phone system appliance and additional phone lines
  • Reduced infrastructure costs
  • Simpler comms network (cloud PBX uses your existing internet connection)
  • Flexibility and redundancy (you can work anywhere you have an internet connection)
  • You can easily add branch sites
  • Enhanced call handling and analytics
  • Mobile compatibility
  • Per second billing

Here is a simple comparison chart highlighting the differences

On-site PBX Cloud PBX
On-site PBX PBX purchase around 10k for small to medium business Per-person licensing
Handsets Locked into manufacture $300-$700+ Optional, SIP-compatible handset or software client on PC, mobile and tablet
VoiP or ISDN charges 2k to 5k installation + ongoing monthly fee. Limited lines – eg. 20 ISDN lines only allow 20 simultaneous calls at any one time Uses your current business-grade internet connection. Limited only by licences and speed of internet.
Programming charges Complicated, often needing specialised admins that can cost upwards of $180 per hour. Back-end set-up taken care of and only initial configuration required. Easy-to-use web interface.
Ongoing maintenance Extended warranties required to cover items on site, potential delays in supply and then reconfiguration charges. No physical items to worry about and support starts at $5 per person.
Works on mobile Additional servers/modules required App store download – Apple and Android
Reporting For advanced reporting, you need third-party providers starting at $30k plus ongoing fees, set-up issues and training issues. Business intelligence platform built-in and only requires correct licensing. No installation process or additional onsite servers.

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