How a Legacy Phone System May Cost More in The Long Run

Transitioning a phone system to UCaaS presents opportunities and savings, but companies may be reluctant to switch.

As the benefits of Unified Communications as a Service (UCaaS) become better understood, it’s natural to wonder why some enterprises continue to use an on-premises phone system. The advantages of switching to UCaaS or to Voice over Internet Protocol (VoIP) may seem clear, but there are a few reasons why enterprises are reluctant to give up their phone systems:

  • They are still reaping the return on the high initial investment of the phone system.
  • They have a staff that is reluctant to embrace new technology.
  • They may have limited bandwidth or be in a location with limited connectivity.

While these may seem like good reasons to continue to use a legacy phone system, it’s possible that enterprises overlook the true cost of retaining out-of-date technology for communications. It’s important to measure the benefits that could be gained through the use of UCaaS, such as streamlined communications, reduced travel expenses, and improved collaboration tools. And the higher monthly charge for an on-premises phone system can hardly be worth avoiding the task of teaching employees to use new headsets.

It’s true, however, that a cloud-based system isn’t for everyone. If you have a client that has only one location, has no remote employees, and strictly needs a phone system for voice calls and the occasional voicemail, then on-premises is probably the right choice.

The Benefits of Implementing UCaaS

Cost savings: When you’re talking with a client that’s using an on-premises phone system, it is a good idea to not only point out the savings on monthly bills, but also the potential for other types of savings. Companies that implement UCaaS are able to form virtual teams, eliminating travel expenses for non-local team members as they collaborate through the system, rather than in a boardroom. In addition, UCaaS broadens the hiring pool. Geography need no longer be a consideration when new hires are free to work wherever they live.

Companies also save significant costs related to maintenance, and there’s no high-priced phone system hardware to purchase in the initial transition.

Scalability: For companies that hope to experience growth in the coming months or years, cloud solutions like UCaaS provide the benefit of allowing for users to be added as needed. It’s no longer necessary to jump up in the number of users, with multiple licenses going unused and wasted until the company experiences more growth.

Streamlined communications: This is, of course, the main reason UCaaS is attractive. For instance, customer service representatives need only access a single application to see an entire history of interactions with a particular customer, including chat, voice, and email conversations.

If your clients need better mobility, scalability, or improved integration between a phone system, contact center, and existing business applications, unified communications (UC) can help improve employee productivity. Contact Compass Solutions to learn more.

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