Over the last few years, there has been a radical transformation in business processes and functions as businesses have increasingly transitioned to using cloud-based services and turned away from their use of traditional physical infrastructures.
One key business process that has been transformed by the adoption of cloud-based strategies is telecommunications; lots of businesses now use cloud-based communication tools and applications as their primary means of communicating internally with employees as well as externally with their clients. The cloud communication market is expected to reach $4.45 billion by 2021, up from $1.36 billion in 2016, a Compound Annual Growth Rate (CAGR) of 26.8%. Discussed below are seven of the benefits gained by businesses through the use of cloud-based communication tools.
1. Total Cost of Ownership (TCO)
Capital and operational expenses are significantly lower with cloud-based communication systems compared to traditional phone systems. Traditional phone systems typically require significant initial investment to develop the communication infrastructure; this entails hiring skilled personnel, purchasing the necessary equipment, and finding a suitable space to house the infrastructure. This is in contrast with cloud-based solutions whereby the cloud service provider bears the cost and responsibility for the development and maintenance of the communication infrastructure; a regularly scheduled fee is paid by businesses to utilize the cloud communication infrastructure.
The use of cloud-based communication tools removes the geographical restrictions that can occur when using traditional communication systems. Traditional systems are typically developed to cover predefined locations; effective telecommunication becomes challenging, if not impossible, outside these locations. By using cloud-based communication tools, employees are no longer tied to working in predefined areas; since their communication tools are in the cloud, they have the flexibility to work from any geographic location.
Cloud-based services are inherently scalable; they can be scaled up or down depending on the business’s needs. As such, businesses can rapidly and easily expand their telecommunication services to accommodate the demands of a growing business. This is in contrast to traditional communication systems that cannot be expanded easily and require significant financial investment for any form of expansion.
Cloud-based communication tools allow for a greater degree of collaboration and cooperation among employees; this is especially the case if the employees are located in disparate physical locations. In addition to voice communication, cloud communication tools allow for multimedia sharing, shared work spaces, video and instant messaging, and group conferences, among others. Traditional phone systems, in contrast, are highly limited in their collaborative capabilities.
A major disadvantage of traditional phone systems is that it has a single point of failure; as a result, events such as natural disasters can lead to severe disruption in business communications. Cloud-based communication systems are not as vulnerable to disruption after a disaster; since the infrastructure is located in the cloud, telecommunications can be easily restored following a disaster with minimal interruption.
Cloud-based communication systems are more secure than traditional phone systems. Security threats such as spoofing, phishing and call interception are easily recognized and neutralized by cloud-based systems. Some of the security measures in place that ensure the integrity of a business’s telecommunications include data encryption, two-factor authentication, and network security among others. The security system of traditional phone systems is not as robust as cloud-based systems and is thereby more susceptible to compromise.
A Service Level Agreement (SLA) is usually signed before a business utilizes the telecommunications service offered by a cloud service provider. The SLA details the services to be provided by the cloud provider as well as the expectations required in the provision of the services; it also details the consequences if these expectations are not met by the cloud service provider. As a result, businesses are guaranteed a certain level of reliability in their communication system. Traditional phone systems do not require an SLA and as such, reliability of the services is not guaranteed.
At NewCloud Networks, we know how important telecommunication is to your business. We have the knowledge and the expertise necessary to develop a cloud-based telecommunication system to meet your business needs. Contact us today for more information about our services.