Why are Large Businesses Moving to Cloud Phone Systems?

Your company is considering moving over a cloud phone system and wondering why so many large companies are moving over.

In this video, I explain why cloud business phone systems have been growing rapidly and why it’ll keep growing.

Want my recommendations on the best cloud phone system vendors to quote, for your company? Click the button below and ask me today.

About Mike

Mike Smith has been helping companies select the best telecom, WAN, security, and cloud services since 1999. He founded AeroCom in 2003, and has been the recipient of numerous business telecommunications industry awards, including being recognized as one of the top 40 business people in tech-heavy Orange County, CA. Follow Mike on YouTube, LinkedIn, Reddit and SpiceWorks.

Transcript

cloud business phone systems, a.k.a. Unified Communication as a Service or UCAS, as everyone in the industry likes to call it, has been growing rapidly, especially since around 2020. The UK’s market size right now is about 44 billion and by 2029 they expect it to be about 140 billion. So it’s been growing rapidly for 4 to 6 years and it’s going to grow even more so in the next five years or so. So definitely something that’s growing a ton. Some more stats. Over 31% of businesses today use cloud phone systems or use hosted VoIP. So that means 70% of the companies out there still aren’t using it. And it just shows you how much growth there still is out there. By the end of 2021, 90% of business leaders said that they were going to purchase a cloud phone system. At some point, they were not going to repurchase another on-premise phone system. And it’s not just small businesses. It’s all size businesses. But why is that? Why are so many companies moving to a cloud based phone system from an on prem phone system? I’m Mike Smith. I’m the president of Aero Comm. Let’s put our heads together on this.

My recommendations

But first, if you’d like my recommendation on the best cloud phone system vendors your companies should be quoting. Maybe your company is in the market for this right now. Reach out, send me an email or give me a call (714.593.0011). I’m a broker for all the major cloud phone system vendors out there. I will help your company make a lot better decision in a fraction of the time. This is what I do. It’s what I’ve been doing for over 20 years. Reach out to me. Give me a call. I love to help you with this. Send me an email. Give me a call. Also, don’t forget to subscribe to our channel so you don’t miss any of my weekly videos that I put out. If you’d like to video, hit the like button, ring the bell and leave me a comment down below and tell me what you liked about it. Tell me what you know about the subject matter. Ask me a question. I love to hear from you. Well.

Why are large businesses moving to cloud phone systems?

If you look up this topic on the Internet, you’ll see all kinds of crazy reasons why companies are moving to cloud phone systems. But I’ve had a lot of experience with this. I’ve talked to over thousands of companies who are evaluating, moving from on prem phone systems to cloud phone systems. I’ve been helping companies buy cloud phone systems since 2000. For 2003 is probably when I first started trying to sell it out there and I actually put a cloud phone system in our company’s office in 2005. So I’m really familiar with the topic and and from my perspective, it really took off from the beginning of video. I said 2020 is when the big numbers started hitting, but I started seeing it a lot more like 2017. 2018 is when I really saw a big change in the marketplace. So I’ve had a lot of perspective. You know, I haven’t tabulated all kinds of statistics, but I can tell you some opinions I have of why companies are moving to this service.

An example

Okay, here’s an example. if you read the Internet, you’ll see all kinds of crazy stuff out there explaining why companies are moving to cloud phone systems. But as a broker in this industry, for over 20 years, I’ve really seen it firsthand. So I’ve been selling cloud phone systems probably since 2003. Not many people were buying them back then. I bought our first one for our office in 2005 and I really didn’t sell a whole lot of it until around 2016, 2017. I started noticing things are starting to change and companies were starting to buy cloud phone systems. When they’re on prem, phone systems were end of life. So why is it that so many companies all of a sudden are buying cloud phone systems? Will Because I’ve talked to thousands of businesses over the years that are evaluating this, I’ve got a pretty good perspective. So I’ve made a list. Let me go through my list and tell you what I think is the reason.

Reduced costs

Number one on that list is price. What I’ve seen a lot of times is that if a company is moving off of an on prem phone system to a cloud phone system, the cloud phone systems monthly cost is usually about the same as that company was paying for their pure I.T. One or their purity ones. They were providing dial tone to their business so they can get rid of those pricing for the same monthly cost as the pure eyes pay. Now they have a full cloud phone system with all the maintenance included, all the licensing included already. So their monthly cost doesn’t really change at all. And they’re comparing that to buying an on prem phone system that is going to cost about maybe $1,000 per, you know, per user that they have as a one time cost. That’s that was kind of the rule of thumb for years is that an on prem phone system costs about $1,000 for every user you have that the phone has to have capacity for. So it might cost a little bit less than that nowadays, but still it’s a large one time purchase comparing that to not changing their monthly at all, just getting rid of their dial tone and if they have zip trunks currently. So if you have symptoms today, the cloud phone system still isn’t going to cost you a whole lot more than your zip trunks are costing. You might cost you a little bit more than, say, if you had a pure AI, but still it’s the cost is is pretty close. So that’s the number one reason I think

Easy to administer & Add mobile devices

the second reason is cloud phone systems are super easy to support. No more having to call an outside vendor every time you need to make a move, add or change to the phone system. With a cloud phone system, you can easily do any of the moves, add changes yourself. It’s just on demand. Do it yourself. Really simple, really user friendly as opposed to the on prem phone systems. You really have to be that phone systems expert with software that works with just that phone system to do moves. That changes.

The third reason is mobility cloud phone systems come with a mobile app that’s really easy to use If you try to install a mobile app with your on prem phone system, you’ll know how difficult that is. It’s difficult to install, it’s difficult to administer and it’s difficult to support. So and that means all the dial tone. There are all the, you know, the mobile apps that you have for your employees are coming back to your main office to grab dial tone. It’s just really difficult as opposed to cloud phone systems. It’s all going back to the service provider. So it’s not a hub and spoke where it’s coming back to you. It’s going directly to the Internet, directly to the service provider. It’s just very easy to use, very easy to install, very easy to support, and the service provider is supporting it, not you.

Enables remote workers & Increased redundancy

The fourth reason kind of dovetailing off the mobile app is it’s just easier to work remotely with cloud phone systems. So for your company’s users, they can go home and work from home, they can work from home all the time and have a softphone installed on their desktop computer or their laptop, or they can just work off their mobile app in their house, or they can work off and use their home line if they have a landline and use that and point all their calls from the cloud phone system to that landline. But overall, it’s just it’s a lot more of a mobile phone system than an on prem phone system. It’s just so easy to work from home. And we all know since 2020, that’s just a really popular option. A lot of employees are working from home nowadays and cloud phone systems are just really enabling a lot of ease of use when it comes to working from home.

The fifth reason is more redundancy. Cloud phone systems actually have more uptime and more redundancy than a non prem phone system. And it’s easy to see because every user in the office has a mobile app on their cell phone. So if for some reason the Internet goes down at your headquarters office or the power goes out and you lose all your phone lines, all your Internet connectivity, things like that, your phone system still up and running in the cloud and your users are still receiving phone calls on their mobile app or maybe their cell phone on their laptop or their home office.

The only good option

So you’re not reliant, you don’t have a single point of failure with your headquarters anymore or even dual point of failure where the headquarters in a backup, if you have an on prem phone system with a backup set up in a data center, even that is less redundant than a cloud phone system. Cloud phone system providers have multiple global data centers that are mirrored and running active, active. So even if a cloud service provider loses a data center, it’s mirrored running, active, active with all their other data centers so they rarely ever go down. Less often than an on prem phone system. I remember for years it was known that if you have a pure i.t one that things are going to go down at least once a year. And that’s just not the case with cloud phone systems. You don’t have to have that inherent downtime that you have to have with the on prem phone systems.

In number six is the cloud phone systems Nowadays in 2024 are really the only good option. You have all of the on prem phone systems because of the big push towards cloud. All the big on prem phone systems have kind of disappeared. If you noticed, all the vendors are disappearing. All the VARs who sold the on prem phone systems. There’s not that many left anymore. So it’s hard to support and on prem phone system because there’s not a lot of VARs around, there’s not a lot to choose from. And then on top of that, obviously the large manufacturers are not pouring a lot of R&D money into these on prem phone systems because all the push has gone to cloud.

IT department hates it anyway

So they’re not really developing these on prem phone systems like the cloud systems are developing. So you’re not getting the latest and greatest technology a lot of the time and you’re not getting the support you need and you just don’t have the selection you used to have.

And last but not least, the seventh reason, in my opinion, is because you guys, the IT departments, never wanted the phone system in your server room to begin with. So you add up those first six reasons. It’s the I.T team is looking for a reason to get rid of that phone system server in in the server room. They’re like I’ve been waiting for a reason to get rid of this thing. I don’t speak phone system and I don’t really like managing the phone system. Just give the city department any excuse to get rid of that thing, especially when it’s a good cost and all the the mobile app and all that good stuff more redundant. Hey, just all the more reason that they want to get rid of it.

Still confused reach out and contact me

Well, I’m sure you have a bunch of questions on cloud phone systems. If your company is shopping for a cloud phone system and you’re a medium sized company, meaning you have 50 to 100 employees or more or you’re a large organization, that’s really my sweet spot. That’s my expertise. reach out, send me an email or give me a call (714.593.0011). if you’d like. My recommendation on the best cloud phone system, technology and vendors, your company should be quoting. I’ll ask you some preliminary questions, some discovery, and based on your answers, I’ll recommend the three or four so vendors your company should be quoting. I’ll probably give you some insight as to who you definitely should not be quoting and why. I’ll make sure that all the vendors that you’re quoting have great reputations for uptime and service quality, high quality product. I’ll introduce you to the best salespeople. You should be working with at your chosen vendor. I’ll get you better pricing on the vendor of your choice as well. I will oversee the quoting process and make sure you get the best price. You don’t know how many times I’ve had companies come to me with the quote they’ve gotten from a direct sales person at one of their chosen vendors, and it’s way too high. The sales reps trying to take advantage of you. Reach out and contact me. I’ll help you get the right pricing. I quote these vendors all the time, so I know all their pricing.

Subscribe to my channel

I’ve been in the industry over 20 years. I’ve been owning this company for over 20 years. I know all the vendors inside and out. I represent hundreds of the cloud phone system vendors, all the major ones you’ve heard of. So based on your company’s requirements, I can get you with the right vendors. So reach out. Contact me. I’d love to help you. Send me an email, give me a call. And the nice thing on top of all that is I don’t charge your company a dime for my broker’s services. The service providers actually pay me my broker fee, so you have no excuse not to at least see what my opinion is. So give me a call today or send me an email. I’d love to help you. It’s the reason why I do these videos. And if you like the video, don’t forget to hit the like button and subscribe to the channel. So you don’t miss any of my weekly videos that I put out. Thank you for watching and I will catch you on the next one.