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Cloud-Based Phone System: Pros and Cons

Veronika Petrenko

June 17, 2020

Business communication has been changing at a rapid speed, and so do business telephone systems. The old-school landline phones that were an integral part of any business communication not a long time ago are now replaced with more agile, cost-effective, and reliable Voice over IP technology. Although many companies find this shift beneficial, some still underestimate its real power. To make things clear, in this article, we’ll speak of all pros and cons of a Cloud PBX phone system and let you make up your mind. 

What is a Cloud-Based Phone System?

So, what is a cloud-based phone system? Basically, it’s a phone system that works using Internet Protocol for placing and receiving calls. The voice in such systems is treated as data uploaded and downloaded in real-time. As stated from its name, the cloud-based phone system works in the cloud, so all your data is stored online. This way, you don’t need to worry about downtime problems and always stay reachable. Of course, if you don’t have any internet-related issues. Сloud-based phone systems usually don’t need special hardware or software to install, can cut your spendings, and are very reliable. 

The Pros of Cloud-Based Business Phone Systems

Here is the list of the cloud-based phone system advantages that will help you get a big picture of what this service actually is and how it can benefit your business.

1. Cost Savings

Most of the VoIP providers have per-minute or even per-second billing (like CommPeak does), so your business phone system won’t cost you a fortune as it used to do with a landline phone. Plus, mostly, there are no setup fees required by SIP trunking providers, meaning it’s very affordable.

2. No Special Hardware Required

Switching to such a phone system doesn’t require a considerable upfront investment. All you need is a stable internet connection and IP phone or softphone, and that’s it. 

3. Mobile, Remote & Easy to Switch Office Locations

Cloud telephony will be a good option for you if you are going to expand, downsize, or relocate your business in the future. Because of the system mobility and cloud nature, this shift won’t cause downtime for your business. And your agents will always stay on the line no matter their location, as they can use their mobile phones to place and take calls. 

4. High Security

While traditional on-premise landline telephony is quite physically vulnerable — it can be affected by power shortage, some unexpected natural disaster, or simply be stolen from your office — cloud phone systems have few layers of security and strong data encryption. And as has been said, all your data is safe in the cloud. Large VoIP providers have multiple data centers located in different parts of the world, so if one is down, the other will back it up.

5. Easy Administration 

Managing your cloud phone system is much easier than landline one — it doesn’t require any technical background or special knowledge so that any manager will cope with it. And you don’t need to hire a team of technicians to maintain your phone system as most VoIP providers offer round-the-clock support to their customers and help resolve any issue they may face. Credible VoIP providers also have an online administration portal where you can manage your phone system, easily add virtual numbers, and have an eye on all that is happening with your phone system and your staff.

6. Scalability  

With a cloud-based phone system, you can scale your business when you need it. No extra hardware or equipment required, and you aren’t bound to a fixed number of agents or desks. All you need is notifying your VoIP provider and getting additional credentials for new agents.

7. Integration 

Many cloud telephony systems can be integrated with your CRM system, making it easier for your agents to dial numbers with a single click of the mouse. Furthermore, having all your data synced can improve your sales campaign. 

The Cons of Cloud-Based Business Phone Systems

Keeping in mind all the benefits this phone system can bring in, let’s figure out the disadvantages of the cloud-based phone system and put the puzzle together. 

1. Internet Dependency

Because this phone system is placed in the cloud, it’s obvious that you need to have an internet connection to use it. What’s more, this connection must be stable and of high quality, if you don’t want to suffer from insufficient sound issues. 

2. Migration Costs

For businesses that don’t have headsets or a separate internet line for business telephony, making a switch to cloud-based telephony means new costs. However, this equipment is quite inexpensive, and in the long run, it will be paid back, thanks to cutting your spending on calls.

3. Integration Issues

If you want to use a cloud-based phone system, you should first study what CRM integration possibilities you will have. Some of the phone systems might not work with the CRM system of your choice, or its integration won’t be full, which might not suit your business. 

4. Staff Training

Even though the cloud-based phone system is usually user-friendly, it does require some time to get accustomed to it. Especially if your agents have been working with landline telephony for a while. So, you should invest in staff training to be sure that they know all the nuances of cloud-based telephony. 

How to Migrate to Cloud-Based Business Telephony?

After reading all the ins and outs of cloud-based telephony, the only question that may still bother you will be ‘What should I do to migrate to cloud telephony?’ That’s why we’ve prepared a list of questions that your potential VoIP provider should answer: 

  • Are there any risks for your company moving to the cloud?
  • How many staff members will use the phone system?
  • What are the key features that are crucial for you?
  • Will you be able to expand your business in the near future?
  • Which CRM do you use?

If you still can’t find a reliable VoIP provider, you can give CommPeak a try. Contact us and enjoy better business communications in no time.


Many businesses don’t want to bother themselves and study cloud-based hosted phone system pros and cons. Of course, no system is perfect, and the phone system in the cloud is no exception. But the benefits you get once using this type of telephony will outnumber its cons, for sure.