If you’re like most modern business owners, you’ve probably realized that you need to upgrade your phone system. And you’re at a crossroads, wondering if you should stick with your traditional phone system or embrace something new, like cloud-based phone systems.
If you’re unsure about what direction to take, you’re not alone. Let’s break it down and explore the key differences, benefits, and potential drawbacks of these two types of phone systems. By the end, you’ll have a clearer idea of which option might be the best fit for your business.
Understanding the Basics of Cloud vs. Traditional Phone Systems
Before making a decision, we need to know what we’re deciding between. Even though you may be familiar with these phone systems, it doesn’t hurt to review them.
First, what are cloud-based phone systems?
Cloud-based phone systems, also known as VoIP (Voice over Internet Protocol) systems, are phone systems that are operated and managed entirely online. VoIP enables you to make and receive phone calls over your existing internet connection instead of using physical phone lines. No need for additional hardware like a physical PBX system or specialized wiring.
And because most cloud-based phone systems come with a downloadable app, sometimes called a softphone, you can access and use your business phone system from almost any location and any device with a cell signal. This kind of quick and easy flexibility is becoming more and more essential, especially as more companies embrace hybrid work setups.
Second, what’s a traditional phone system?
On the other hand, traditional phone systems are the old-school option that many businesses have been using for years. These systems rely on physical phone lines — sometimes referred to as Plain Old Telephone Service (POTS) lines — that are connected to a network of on-site hardware, typically Private Branch Exchange (PBX) boxes hosted in your office. They’re known for their reliability and familiarity. After all, they’ve been around for well over 100 years, so most companies are comfortable with them.
And as the saying goes, “If it ain’t broke, don’t fix it,” right? Well, maybe. But it’s worth taking a closer look at whether this trusty old setup is still the best option in today’s increasingly digital world.
The Key Differences Between Cloud-Based and Traditional Phone Systems
Now that we know the basics of what constitutes a cloud phone system and a traditional one, let’s explore their differences in more detail.
Infrastructure and Setup
Setting up a cloud-based phone system is refreshingly straightforward. With everything hosted in the cloud, there’s no need for bulky hardware. All you really need is an internet connection and the right devices—your setup could be as easy as a few clicks and some simple configuration.
It’s also great for when you’re growing because you don’t need to worry about complicated installations or busting your budget. Whether you’re adding new employees or new locations, you can just adjust your subscription to match your needs.
Traditional systems, on the other hand, require a lot more infrastructure. We’re talking phone lines, PBX hardware, and a good bit of installation work. If you’re planning to expand or move offices, scaling these systems can be a logistical challenge and often comes with a hefty price tag.
Costs and Maintenance
If keeping costs down is a priority (and let’s be honest, when isn’t it?), cloud-based systems offer a clear advantage. With IP telephony, there’s no need for a large initial investment in hardware, and you’ll likely pay a predictable monthly subscription. Plus, maintenance is a breeze—your service provider handles updates and troubleshooting, so you can focus on running your business.
Expect higher upfront costs with traditional systems. You’re not just paying for the phones but also for the installation and ongoing maintenance. And if something goes wrong, you might need specialized IT help, which can add to the expenses.
Features and Flexibility
When it comes to features, cloud-based systems really shine. Cloud-based business phone systems offer all the bells and whistles you could want—think call routing, voicemail-to-email, video conferencing, and easy integration with tools like CRM software (more on that later). Some VoIP systems have so many features and functions, they’re basically unified communications (UC) platforms.
Not to mention that a cloud phone system is super flexible. You can add or remove features as you need them without spending a lot of time and money to do so.
Traditional systems tend to be more basic. Sure, they handle calls and voicemails, but if you want advanced features, you might need to invest in additional hardware or even replace parts of the system. It’s not exactly the most flexible option.
Reliability and Security
While cloud-based systems are incredibly versatile, they do rely on a stable internet connection. If your internet is unstable or slow, it can affect call quality. And if the internet is out entirely, your phone service might be too. But with the right provider like Decibel, this issue can be solved rather easily through:
- Automatic call forwarding to a designated mobile device
- Failover and backup connections (usually 4G LTE connections)
Reliable VoIP providers regularly audit and update their cloud security measures, so anything stored in the phone system will be protected, too.
Traditional systems are known for their reliability, particularly in areas with unstable internet. Since they don’t rely on the internet, they can function even during outages. However, they may lack the advanced security features that come standard with modern cloud-based systems, leaving you vulnerable.
Mobility and Remote Work
Cloud-based systems really excel when it comes to remote work. Because they’re “digitally native,” they usually have an app that transforms any device, including a cell phone, into a secure office line. All you have to do is download it to your laptop, mobile device, or desktop. Once that’s done, your team can make and receive calls from anywhere! It’s ideal for businesses with remote workers or those who need to stay connected while on the go.
Traditional systems don’t fare as well here. They’re designed for office use, and while some can be adapted for remote work, the process can be cumbersome and not nearly as seamless as with a cloud-based system.
For example, employees might need additional hardware, software, and specialized equipment to access the office phone network, which doesn’t really hold up when compared to the out-of-the-box remote capabilities of a cloud phone system.
Integration with Existing Tools
Cloud phone systems don’t just make calls—they integrate with the tools you’re already using, like your CRM or email. These kinds of connections mean you can streamline your workflows, save time, and boost productivity.
For example, if you’ve integrated your VoIP phone system with your CRM, the system can log voice calls and update customer records in real-time, saving you time and keeping your data up to date.
Traditional systems, however, often operate in isolation, which can make things more complicated for you and your team. Since they don’t easily connect with your existing tools, you might find yourself manually entering call details into your CRM or switching between different systems to get the data you need. This not only slows down your workflow but also increases the chance of errors when it comes to sales follow-ups or customer support.
The Pros and Cons: Cloud Phones vs. Traditional Phones
We covered quite a lot in that last section. So much that you might’ve missed some of the advantages and disadvantages of each system. To make things easier, we’ve put in a “pros and cons” list for you and your team to review.
Do you have questions about it? Contact the team at Decibel, and we’d be happy to help!
Cloud-Based Phone Systems
Pros:
- Flexible and Scalable: Easily adjust your system as your business grows or changes.
- Cost-Effective: Lower upfront costs with a subscription fee, saving you money over time.
- Remote Work Friendly: Make and receive calls from anywhere using various devices.
- Advanced Features: Includes features like video conferencing and CRM integration.
- Easy Upgrades: Quickly add new features or integrate with other tools online.
Cons:
- Internet Dependent: Needs a stable internet connection; outages can affect call quality (though this can easily be remedied with failover solutions in place).
- Security Concerns: Data is stored online, which may pose security risks.
Traditional Phone Systems
Pros:
- Reliable: Works independently of the internet, so it’s stable during outages.
- Familiar: Well-known and easy for staff to use without much training.
- No Internet Needed: Not affected by internet issues.
Cons:
- High Initial Costs: Expensive set up for equipment and installation.
- Far Less Flexibility: Harder to scale or upgrade without extra hardware.
- Not Remote Work Friendly: Extra hoops and costs required to support hybrid or remote teams.
- Lots of Maintenance Required: Ongoing costs and need for specialized staff.
- Limited Features: Fewer advanced features; upgrading can be very costly.
Given all these pros and cons, you might start to see why cloud-based phone systems have become so popular among SMBs, enterprises, and even global corporations.
Team Cloud vs. Team Traditional: Which is The Winner?
Now that all the information lies before you, it’s time to sum it up.
Traditional phone systems have been reliable choices for decades. Unfortunately, they’re beginning to show their age as corporate America becomes increasingly virtual. Their lack of flexibility, higher costs, and limited features make them less suitable for businesses looking to stay competitive in a fast-paced corporate environment, especially since carriers are charging more for plain old telephone service than they ever have before.
Cloud phone services offer the perfect blend of flexibility, cost savings, and advanced features any company could need. They’re easy to set up, simple to scale, and easily integrated with the tools you’re already using. And it runs on the internet connection you already have. If you’re looking to stay flexible, agile, and competitive, a cloud phone service might just be the perfect fit.
Make the Right Choice with Decibel
Choosing the right phone system is a big decision, but with the right information and a trusted VoIP provider like Decibel, you’re well on your way to making the best choice for your business.
If you’re ready to explore the possibilities of cloud-based communication, Decibel is here to help you make the best choice for your business. Give us a shout, and we’d be happy to help.