Why businesses should use cloud-based phone systems

Cloud-based phone systems bring a ton of benefits to your business. If you’re still using a traditional landline, it’s time to make the switch!
Ali Ali
Ali Ali
Reading time: 5 minutes

With the rise of remote work and distributed teams, companies are rushing to adopt new technologies to improve their workflow and productivity. 

Although most enterprises have made significant strides in their in-house technology, one system seems to prevail over the innovation happening at companies: traditional phone systems.

These phone systems are seen as an essential utility and are often overlooked when it comes to improving technology. 

Although traditional phone systems help improve internal and external communication for most businesses, the manual nature of the system results in added costs for businesses in addition to hindering performance. 

This is where cloud-based phone systems come in.

Cloud-based phone systems, or Voice over Internet Protocol (VoIP), allow for voice and video communication over the internet. With an internet connection, your business can use VoIP software to make calls to reach your leads and customers, even on their regular landline. Essentially, it bypasses your need for a traditional landline when making calls and receiving calls.

Such systems offer better performance and cost-efficiency in comparison to traditional phone systems.

If you’re not convinced yet, let’s dive deeper into the benefits your business can gain by switching to a cloud-based phone system.


6 benefits of using a cloud-based phone system

Cost savings

One of the main reasons why businesses switch to cloud-based phone systems is because of the cost. 

Traditional phone systems come with many upfront and hidden costs. Most businesses are not aware of this until they have personally used a traditional phone system. 

Firstly, there’s the cost of installation. This can be expensive and time-consuming for businesses. Additionally, most traditional phone system providers will charge a monthly fee for the maintenance of your system. This can quickly accumulate and your business can spend thousands of dollars per year just on maintenance.

On the other hand, a cloud-based phone system eliminates the major costs associated with a traditional system. 

With a cloud system, there are no installation fees. This alone can help save your business hundreds of dollars. Furthermore, most cloud-based phone system providers follow a pay-as-you-use payment model. 

Instead of getting billed whether you use their features and plans, cloud providers will only charge you for what you use. This can reduce your spending on your phone system dramatically.

Also, there are no maintenance fees associated with using a cloud-based phone system. The cloud provider provides routine updates to your phone system for free and you will never pay any maintenance fees regarding your phone system.


One of the worst things that can occur to a business is experiencing downtime in their phone system. In addition to losing internal communication, your business can lose a lot of revenue and customers due to downtime. 

This means your sales team cannot make calls, any meetings, or calls are postponed. The frustration for businesses can be compounded because they are paying maintenance fees just to experience downtime from their phone provider. 

A cloud-based phone system combats this by providing the most reliable phone system for your business. As long as your phone system can connect to the internet, it will work. 

You will never need to worry about downtime because the cloud has 99.99% uptime. The best and largest organizations in the world rely on the cloud to power their operations. By switching over to a cloud-based provider, you can reduce your business’ downtime significantly.


For businesses that use traditional phone systems, a common issue faced is the lack of scalability. 

Traditional phone system providers are limited by the physical nature of their business. If your business grows with a traditional phone system provider, you will need more space to store systems, and this results in more maintenance needed to perform your normal business operations. 

Additionally, your overhead costs will also increase in proportion to how much you scale your business. The more your business grows, the more that you will need to pay in terms of installing and maintaining new systems.

Scalability is easy and cost-effective when you use a cloud-based provider. Since phone systems are not stored on-premise, you can simply upgrade your phone system directly from your provider and start using more bandwidth. 

You don’t have to invest in new equipment, pay hefty installation fees, or even look for more physical space to house more phones!

Advanced call features

One of the best value-adds you can get from upgrading your phone system to a cloud-based system is the numerous call features. 

Firstly, cloud-based phone systems allow your business to have unified communications. With your cloud-based system, you can have a single dashboard that shows all of your business communications. Additionally, there are many collaborative tools in cloud-based systems that allow employees to coordinate your business’ internal and external operations. 

Some advanced features that some cloud providers have includes customer callback automation, call data & analytics, chatbots, workflow automation, and call monitoring. 

Each feature mentioned can increase your productivity significantly and drive revenue for your business. With real-time data on how your communications and sales teams are performing, you can make the adjustments needed to help your business improve its workflow. 

With a traditional phone system, you are limited by the lack of features and the manual nature of your system. Since you don’t have much data on how your business is communicating internally and externally, you’re reliant on outdated communication tactics to work on projects and communicate with customers. 

Cloud-based phone systems help automate all of your manual communication efforts and enable you to focus on activities that bring value to your business.


Another key benefit of using a cloud-based phone system is portability. 

Traditional phone systems limit you to your physical location and can be very difficult to assemble and reassemble if anyone from your business is moving or is traveling. This can be expensive and time-consuming for you and your staff. 

Additionally, this can be very limiting for businesses growing rapidly or conduct remote work. 

With a cloud-based phone system, all you need is an internet connection. You’re not held down by your location because you’ll be able to use your phone system as long as you have internet access!

Furthermore, some cloud-based phone systems allow you to integrate with your smartphones, allowing you to work on the go.

With this portability and easy access to the company’s phone system, employees can collaborate, create or join calls, send and receive text messages, and more. This ensures your team is connected and working seamlessly on all projects.


A cloud-based phone system offers extensive flexibility for the enterprise and the employees that use the phone system frequently. 

With a cloud-based phone system, you get added flexibility in terms of physical space, billing, and technical features. Firstly, a cloud-based phone system doesn’t take up physical space. 

Secondly, as we mentioned earlier, you get more flexibility in terms of pricing. You can easily scale up or down depending on the usage of the platform. 

You also experience technical flexibility in terms of having constant access to your phone system, whether it be remote working or if you’re in a different geographical location. Another point worth mentioning is the countless of software you can integrate with to facilitate business processes, such as CRMs

This increases the functionality of your system greatly and you can tailor your phone system for your communication needs.

What’s next?

The benefits of a cloud-based phone system are far and wide, and we hope that this article has convinced you to take that leap of faith to make a switch (if you’re still using landlines). 

In this digitally inclined landscape we live in, it’s important that your business take steps to digitize and automate processes. This is so that you don’t fall far behind your competitors. 

That said, if you’re looking for a business phone system, why not give Novocall a try? Its suite of call management features such as click-to-call, an outbound dialer, and call tracking support both inbound and outbound call-driven lead generation efforts.

Start your free trial today!

Ali Ali
Ali Ali

Ali is a content marketer and blogger at alisquared.co. When he’s not guest posting, you can find him link building and learning about technical aspects of SEO.

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