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Breaking Down the Cost Savings of a Cloud Phone System

Breaking Down the Cost Savings of a Cloud Phone System

When the costs of maintaining a legacy phone system become greater than cost savings of a cloud-based alternative, the decision to upgrade is simple.

Today, technology is doing more than bringing new features and functionality to the communications world, and at a lower cost. Technological advancements are making employees more effective, both in and out of the office, creating a more efficient workforce. Which helps the bottom line.

6 Ways Cloud-Based Phone Systems Lower Costs

Let's look at how the efficiencies of cloud-based phone systems reduce costs across all functions of a business.

Scalable at a Lower Price

Add-on fees are a common complaint with legacy phone systems.

In the cloud, lines can be added with little work required by contractors or in-house personnel. This allows easy, fast, and inexpensive scalability. With a cloud-based system, administrators can move lines and increase usage for peak seasons/events without major concerns about overage fees or physical labor.

If your business is growing, a cloud-based PBX system can grow with it simultaneously. Reconfigurations for office additions and new lines are easily handled with the touch of a button through an intuitive administration application.

Additionally, long-distance and international calls are all on the same pricing plan. For companies that operate outside of their region, a cloud-based phone system means a reduction in multi-location costs.

Premium Features Unavailable on Old Phone Systems

The ability to collaborate online, from file sharing to video conferencing, increases productivity and efficiency. Let's take it one step further:

How does increased efficiency and productivity translate to cost reductions?

  • Video conferencing is a viable replacement for non-essential business travel
  • File sharing reduces lag time between teams
  • Auto attendant features reduce costs of administrative tasks
  • Call forwarding and call center operations enhance customer service and accelerate sales processes

A Mobile Workforce

Contact anyone, anywhere.

Messaging capabilities, "Find Me Anywhere" call forwarding, and the ability to provide service to staff members around the globe, are all standard functionality of cloud-based communication systems. Furthermore, some companies appreciate the "Bring Your Own Device" options, allowing for quick connections to common-use hardware, like tablets, PDA's, and smartphones.

The ability to provide efficiency to employees working in the field cannot be overstated.

Providing your sales force with connectivity, and a robust communications platform, gives them a competitive edge. Having the ability to access important documents at a sales event, or reach a key client in an emergency, can make all the difference.

Backup System in Emergencies

Loss of communications in an emergency situation can be financially devastating. On a cloud-based system, redundant protocols keep your phones running the vast majority of the time, with no noticeable interruptions. In the case of major disaster, legacy systems housed in-office may not be salvageable, and at best, could take days to get up and running. In the cloud, wireless backup and cloud connectivity bring communications back up quickly and easily, with lower recovery costs.

Call failover can be managed through a web-based interface. Network redundancy for the Cloud PBX carrier can insure against single points of failure. Overflow management is trivial. In the event of unpredicted or temporary spikes in traffic, it’s much quicker and simpler to add call paths on a hosted phone system. This can help your business more easily manage an influx of calls. In the case of an emergency, you can worry about your business and not have to worry about rebuilding your phone system.


On a legacy system, there is potential for fraud and misuse. Hackers are constantly scanning for unguarded local PBXs. In a typical Hosted PBX environment, the carrier has 24/7 staff monitoring the system with triggers and alerts setup to spot unauthorized activity. Real-time reporting and tracking of cloud-based phone calls add an extra layer of security - extending to messaging and file transfers. Additionally, in the case of misuse, your phone service can be turned off quickly and easy, regardless of location. Remember, in a traditional telephone environment, the carrier (your local ILEC such as Verizon) has not incentive to deter misuse... it results in greater revenue for them when it occurs!

Lowered On-Going Maintenance & Hardware

Finally, the costs of maintaining and upgrading both the software and hardware associated with in-house legacy systems offer a big cost reduction in the areas of personnel and overhead costs.

Administrative Costs:

Chances are either your office administrator or IT team managing your phone system. Odds are, they would rather not be. The odds are even higher that your business would be better off if they could take phone administration off their to-do lists, and replace it with more high-value work.

On a cloud-based system, this becomes a possibility. Administrative work is minimized or shifted to the provider.

Overhead Costs:

The infrastructure costs for a cloud-based phone system are minimal.

The same is not true of a legacy system. Once it is in place, a considerable investment is required to maintain it. Proprietary technology results in an uncompetitive environment resulting in higher costs.

What does it really cost to move to the cloud?

Why constantly spend on your phone system when you could be putting that money into something that will grow your business? With a cloud-based system, all of the infrastructure upgrades, maintenance, and hardware replacement occur at the vendor level, instead of coming out of your budget.

At Atlantech, our pricing is transparent.

We help companies like yours, in the Washington D.C. area, evaluate and choose communication systems every day. These decisions influence the success of your business. We'd like to help you make the right decision and pricing is a big factor. Download this guide to assist in shopping for business phone service.

Tom Collins
Post by Tom Collins
April 19, 2017
Tom is the Director of Enterprise Sales & Marketing for Atlantech Online. He has over 20 years of professional experience in the Internet Service Provider industry and is known for translating technology into positive results for business. A native of Washington, DC, a graduate from University of Maryland (degrees in Government & Politics and Secondary Education), Tom is also a five-time Ironman finisher.