The business communications industry is seeing some of the greatest changes of its time. The leading driver being the steady adoption of the cloud, specifically unified communications (UC) and the delivery of these services, better referred to as unified communication as a service (UCaaS).
As we see in every space, products have life cycles. It’s becoming clear that the premises-based phone systems that many businesses relied on are quickly approaching the end of theirs. According to Gartner, there has been a 6.6% decline in premises-based revenue over the last 5 years.
So, why the steady decline of premises-based revenue?
Many businesses today are faced with aging premises-based phone systems and are left with the choice to either replace them with the same technology or migrate to newer technology like cloud-based UC solutions. Premises-based systems have a tough time competing with cloud based UC systems in several key areas. Here are 4 reasons why UCaaS is rapidly replacing premises-based systems.
From large enterprise businesses, all the way to small non-profit organizations, everyone is looking to reduce costs and become more cost-efficient. Companies are moving away from systems that require high upfront capital expenses and are gravitating to solutions that allow them to pay for only what they actually need and use. With premises-based systems, upgrading an entire system is no longer a financially attractive option, with many systems requiring a longer commitment and the inability to scale. Cloud-based UC models offer greater flexibility, with financing options and the ability to add and remove services and users whenever needed, providing businesses with the assurance that they can scale at anytime with ease.
2. Advanced Features
Businesses are no longer interested in replacing older phone systems with newer ones that offer the same functionality. Companies today are looking for mobility, flexibility and more efficient ways to collaborate and work. Cloud-based UC systems integrate traditional telephony solutions with other communication and productivity applications on an internet protocol (IP) network, enabling a myriad of capabilities, including audio, web and a video conferencing, company-wide chat, presence, email, file sharing and integrations with leading CRM solutions. The enhanced capabilities that cloud UC solutions are able to deliver are much more equipped to meet the growing demands of the modern workforce.
Premises-based switched telephony systems, typically a PBX or IP-PBX system, can be time-consuming, complex and costly to maintain, requiring dedicated IT staff to manage the systems and servers for even the most basic of changes. With the additional costs and complexities, companies are fleeing to the simplicity and maintenance-free technology of the cloud. Unlike equipment that just depreciates, the cloud continues to update automatically and often for no cost. Cloud-based UC systems, which are easy for both employees and administrators to manage the features of the system without IT support, provide the ability to save even more time and money, while improving operations.
Premises-based systems don’t offer much in the area of security, with equipment and critical data all stored on site. Cloud-based UC systems on the other hand, especially those that utilize the cloud for 100 percent of its storage and processing are hosted on the provider’s servers and accessible through an encrypted web browser, ensuring that nothing is left on-site where it could be vulnerable to hacking, theft or damage. The best cloud UC providers even guarantee calls using the public internet are encrypted from the handset into a secure network, ensuring call data remains protected and confidential. An added assurance is offered by the most secure UC providers who encrypts calls, messages and recordings with Transport Layer Security (TLS), cryptographic protocols that provide communications security over a provider’s network, and Advanced Encryption Standard (AES), a symmetric encryption algorithm. Some cloud-based UC systems even allow internal IT staff to change user settings through flexible web portals that work across multiple devices. Offering these additional internal abilities, like controlling who is permitted to forward voicemail, further safeguards private information.
Businesses today are becoming more strategic with their communications investments. In addition to the desire for enhanced capabilities and collaboration features to improve employee productivity and customer service, they are also looking for solutions that are future-proof, secure and allow for growth and expansion. This extreme market shift and steady rise in cloud adoption and UCaaS is an indication that businesses are seeking a more holistic communication solution that extends well beyond voice communications.
If your businesses is looking to move to the cloud or upgrade to a more secure cloud-based UC solution, Prime Telecommunications can help! Our award-winning unified communications solutions are 100 percent cloud-based, making it more secure and easier to use and manage than any other system.
Our solutions operate solely in the cloud, eliminating the reliance on phones, servers and power to operate and ensures nothing is stored on-site where it can be vulnerable to threats or theft. With encrypted calling, messages and meetings, and its intuitive online dashboard, which features customizable user profiles, employees can quickly, easily and securely manage any feature of the system from anywhere, eliminating the need for IT support, increasing productivity and ensuring business continuity.