23 July 2021

Written by

4 minutes of reading

Cloud vs traditional phone system


In this period, there are those who are trying to understand how to manage calls away from the office… and those who installed a traditional phone system and now realize they made a bad decision. 

Today we want to talk to you about real technology: cloud phone system.


To do this, however, we decided to create an article that compares the main differences between traditional and cloud phone systems.


Ready to discover the best solution for your company?


But first, let's clarify some points.


1 - Need for hardware vs access to a service


To work, traditional phone systems need complex equipment, servers which occupy a specific room within your company.


A cloud phone system doesn’t require a server, cables, or room. A cloud  phone system has no maintenance costs, nor is it necessary to call a technician to install, configure or change its settings.


2 - Data transmission from physical devices vs wireless communication


A traditional phone system needs a server, cables, and an active telephone line.


All these elements can stop working, deteriorating during years and they always need maintenance by a technician. 


A cloud phone system uses another type of technology: it is called VoIP.

Voice over IP, in telecommunications and information technology, indicates a technology that makes it possible to carry out a conversation, similar to that which could be obtained with a telephone network, using the wifi connection.


The cloud allows you to connect to the telephone system thanks to an internet connection. 


Thanks to a simple connection, it will transmit your customers' calls to the company telephone line.



3 - Variable costs vs fixed subscription


Choosing a traditional phone system involves uncertainties about the price (if you don't make the right choice): just think about the expense related to the installation and maintenance of the hardware of a traditional phone system.


  • You have to prepare ad hoc room for the server
  • You must constantly air-condition this room, day and night (therefore pay a high electricity bill)
  • You must pay the technician for any maintenance or troubleshooting
  • You also need to calculate phone bill costs 


The cloud phone system works in a different way: you pay a monthly or annual subscription fee.



You only pay for what you use. The costs of a cloud phone system are FIXED COSTS.


Just like a subscription to Netflix or Spotify: there are no surprises or extras to pay for updates, troubleshooting, assistance and technical support.


The contents in the streaming platforms are constantly updated, as are the software for the cloud.


The fixed fee you pay upon subscription to the subscription includes:


  • Activation
  • Maintenance
  • Updates
  • Customer care


If you have installed a traditional phone system in your company or you are thinking about it, perhaps you should read this article again and take a couple of notes on a sheet of paper: create two columns about costs and benefits for each type of phone system.


Most likely you will realize that installing a traditional phone system offers you some advantages, but if you compare them to the costs and limits... 


With the cloud phone system the struggle is uneven, especially in a period like ours, where office work is not recommended.



Best regards,      
Leonardo Coppola