The way people interact has always been evolving continually, especially during the Covid-19 Pandemic many businesses were forced to adapt accordingly to the new norm, your competitors are more likely facing the same exact problem as well. Unless if they have invested in a system or they had a contingency plan.

There are plenty of services out there that provides a phone system, but how do you pick which is best for your business?

Key phone systems or also known as legacy PBXs are hardware-based phone systems, it is your standard PBX system installed at your business location, usually in a computer equipment room or phone closet.

As our technology moves towards the cloud era, cloud-based PBXs are also becoming a norm (especially in this situation). And it has its benefits. Cloud Unified Communication is a service which focuses on integrating business communication at a single place. It allows integration of communication channels such as voice and video.

Whether it is switching to cloud unified communications that will give you a competitive advantage, or is there still value in legacy PBX? Should your business opt for a modern cloud unified communications (UC) system or rely on legacy PBX? Will the adoption of cloud UC be costly? In this blog, we will help break down and analyse the main distinction between a cloud UC system and legacy PBX phone system

It depends on what the company in a telephone system is searching for. Nonetheless, you should consider these four factors: – 

#1. Remote Working

Ever since the Covid-19 pandemic, most businesses were forced to adapt to the new norm in adopting the work from home practice for their business continuity. Some even require their employees to use their personal number for business communication, risking the exposure of privacy. Hence, the demand for remote working arises to tackle the need for remote PBX. 

Legacy PBX: Traditionally, legacy PBX can only be connected to hard phones physically in the office, which limits your employee’s flexibility & mobility to work remotely. It is still possible to enable legacy PBX to be opened beyond the office for your employees to work remotely, however the cost will not be worth it.

Cloud UC: Cloud UC system is 100% remote, your employee need only an internet connection and it can easily be managed online. You will also be able to enjoy the full PBX capabilities and even much more depending on the offering by the provider.

#2. Flexibility & Scalability

In consideration of flexibility, it is clear that cloud-based UC is the winner. On-premise solutions can typically achieve all the same functions and deliver the same services, it can be quite a hassle to scale your legacy PBX as there are a limited amount of phones that can be plugged into hardware. Many often times you will need to contact your vendor for the help of setting it up.

Legacy PBX: Requires manual setup, often more complicated and requires professional help, it is also expensive to alter. Has limitations on the devices, once the limit is up you need to buy another. Usage is tied to the device.

Cloud UC: Easy set up and manage from the web-based admin portal. It can be done remotely from anywhere. Virtually no limitations to the number of phone extensions you can connect, so if you anticipate your business growing in the foreseeable future, cloud-based systems are far easier to scale.

#3. Control & Maintenance

Control and maintenance is a genuine consideration for many businesses, especially when they are deciding to invest in their systems for the long term. Having full control might feel great, however, maintenance accompanies with the control as well. After all, you can’t afford your company phone to be down even for a day.

Legacy PBX: The team has full machine access, including moves, adds, improvements, or upgrades. Your in-house system can be anything you want with the right engineers on your IT team. But this comes at a cost and requires a great deal of maintenance for each improvement or hardware upgrades. Devices may turn obsolete with the constant advancement of new technologies which your competitors can easily adopt and get a competitive advantage.

Cloud UC: The features often come as comprehensive as it is, the solution provider will even add in new upgraded features as well over time, depending on the technological availability and advancement. Most of the control is held by the solution provider, as long as the features you want are supported, you can even have personalized cloud systems provided to you by your solution providers.

#4. The Cost

Now to drill down to the last and most critical point, both the side will have marketing that claims for the cost advantage. Well, it depends on your requirements since there is no one cost for all systems. Still, here is what you should know.

Legacy PBX: The cost varies based on your business requirements. You will own all the devices, appliances, servers, and systems. When you first buy the device, you usually have an initial capital cost that will gradually be paid off and will begin to depreciate. If you need to expand or upgrade, you need to buy more equipment, but ongoing monthly costs are limited. The cost varies based on requirements

Cloud UC: You do not need to invest in devices. No physical space is required for the hardware PBX, you can also do away with physical phones, saving costs on hardware. Pay only a low monthly subscription for the services to your solution provider. Most solution providers provide you with the latest features to improve their solution experience, upgrades are usually not required unless the requirement is+ specifically unique for your business processes. Monthly subscription cost per user $12 – $20.

The Final Choice

There is no possible end to the on-premise PBX vs. cloud-based UC debate. Both practical and reliable business phone systems offer different benefits, whereas each system may be a better option for specific communications requirements.

When it comes to choosing between them, there are many things to factor in, such as your business’s size, the number of remote offices, the level of your technical expertise, your tolerance for being dependent on service providers, and more.

It can be tough to move your PBX to the cloud when you are accustomed to using the on-premise PBX. For this, you will need a reliable cloud-based unified communication system provider who boasts comprehensive experience in providing quality support 24/7. Step into the modern world of cloud engineering by introducing the cloud-based UC system in your organization, you may start by speaking to our experts.

Cloud Unified Communications

Click Here to learn more about Nubitel UC on what kind of features we offer and how we can bring your business communications to the cloud seamlessly.