6 Reasons Businesses Are Upgrading to Cloud Communications

As businesses adapt to new ways of working, traditional phone systems are falling behind. Whether teams are remote, hybrid, or in-office, companies are moving communications to the cloud to gain flexibility, cut costs, and improve control. This article explores key benefits of using cloud based communications for business phone systems and why they outperform on-premise hardware.

Why Traditional Business Phone Systems Are Falling Behind Cloud Communications

Most business phone systems were designed for a time when work happened in one place, on one device, during fixed hours. Desk phones, on-premise hardware, and even company-issued mobile phones assume employees are tied to a single office. While having a few desk phones in shared spaces or client-facing areas is still very useful, relying on physical phones as the primary method of communication creates disunity, limited control, and unnecessary cost, which is why more businesses are switching to cloud based communications systems.

How Does Cloud Based Communication Work?

Cloud communications replace traditional phone system with a centralized, app-based platform that allows employees to make calls, send messages, and collaborate from any computer, mobile phone, or on-prem phone. Desk phones can also be connected through the cloud without making them the foundation of the entire system.

Many businesses are familiar with traditional VoIP systems, which use the internet for voice calls but still require on-prem equipment and desk phones. Cloud communications also use VoIP technology, but extends beyond voice and into messaging, video, collaboration tools, and centralized administration through a single cloud-based platform.

The difference between cloud communications and VoIP managed systems is that cloud based platforms can be used from anywhere, all on one central platform, unlike VoIP systems, which often require both on-prem equipment and devices.

6 Benefits of Cloud Communications Over Traditional Phone Systems

1. Greater Flexibility

Since communication lives on a platform rather than on specific phones, employees can work from any approved device without switching phones or sharing equipment, keeping day-to-day operations running smoothly.

Benefits include:

• Users can be added or removed instantly without hardware setup or outside support.
  
  
• Phone numbers can be reassigned quickly to support temporary coverage or role changes without disrupting existing workflows.
• Call flows and routing can be updated in real time as departments shift or responsibilities change.

Flexibility issues with hardware-based phone systems:

• Adding or removing users requires manual setup or IT support, slowing onboarding and offboarding.
  
  
• Reassigning phone numbers changes for coverage or role shifts are time-consuming when tied to devices.

2. Greater Control and Total Ownership 

Cloud communications platforms centralize business phone numbers, messages, and call activity, giving organizations full control regardless of device or location.

Benefits include:

• Companies can securely access and manage all phone numbers, messages, and call logs from a single platform.
  
  
• Employees don’t have to use personal devices as work phones which can help with focus and data risks.
  
  
• Business communications remain secure when employees change roles or leave the company.

Control issues hardware-based phone systems run into:

• Business numbers and call history tied to specific devices which means phone numbers, voicemails, and call logs live on an employee's phone.
  
  
• When employees use their personal phone for work, business calls, messages, and client contacts may remain on those devices even after an employee departs increasing the risk of unauthorized access to company data.
  
  
• As employees move roles or leave the company, the business risks losing access to communication history and client relationships.

Less Administrative and IT Burden 

Cloud communications platforms can reduce IT burdens by centralizing management within a single platform and getting rid of difficult to fix hardware.

Benefits include:

• IT teams no longer spend hours configuring individual phones or hardware.
  
  
• Updates can be made instantly across the organization from a single platform.
  
  
• Hardware failures are no longer a major source of downtime, allowing business operations to run smoothly.

Common challenges with administrative and IT workload include:

• Maintaining, configuring, and troubleshooting work phones consumes time and resources that could be spent on other tickets.
  
  
• Adding users, updating call settings, or managing multiple carrier accounts adds complexity as teams grow or roles change leaving it up to the IT team to figure out.
  
  
• Device malfunctions or outages can disrupt operations and require immediate IT attention, creating downtime and business interruptions.

4. Easy Scalability as Businesses Grow

Cloud based communications provide a scalable solution that grows with the business. Users, phone numbers, and call capacity can be added or removed through a centralized dashboard without new work phones or on-siteite configuration. This flexibility allows businesses to scale up or down as needs change, giving both users and IT teams a system that adapts easily during periods of growth.

Business growth is difficult to predict, and hardware based phone systems make that uncertainty harder to manage. As companies add employees, locations, or phone lines, traditional systems often require purchasing new devices, expanding carrier plans, and scheduling physical setup, which increases cost and slows momentum.

5. Cost Advantages

Cloud communications platforms remove these hardware-related costs by delivering phone service as software rather than infrastructure.

Key benefits include:

• No physical devices or on-site equipment required
• Fewer carrier-related fees
• Lower long-term costs

Financial burdens that come with phone hardware:

• High upfront hardware costs
• Ongoing carrier and maintenance expenses
• Constant upgrades, repairs, and replacements 

6. Supports Remote and Hybrid Work 

Cloud communications solutions remove these limitations by allowing employees to place and receive business calls through secure mobile and desktop apps, without relying on physical phones. Business numbers remain centralized, while employees stay connected from anywhere, ensuring seamless remote or hybrid work.

Hardware-based phone systems were designed for on-site use, making remote work difficult to support effectively. Employees must be on location to access business communications, creating gaps when teams work from home, travel, or operate across multiple offices.

Key Features of Cloud-Based Business Communications

• Enterprise-grade calling
• Multi-device connectivity
• Messaging and chat
• File sharing and collaboration
• AI-powered insights and analytics
• Advanced call management
• Video conferencing.
• Archiving and compliance

The Real Cost of Using Mobile Phones in the Workplace

The Cost of Issuing Mobile Phones as Work Phones

For many businesses, providing mobile phones to employees feels like a modern solution, but the costs add up quickly.

• Most modern mobile phones used for work cost between $700 and $1,000 per employee, depending on the model and storage.
• Carrier plans:
  Business mobile plans typically run $60–$90 per line per month, often with contracts tied to the device.
• Replacement and lifecycle costs:
  Work phones are usually replaced every couple years, with additional costs for lost, damaged, or stolen devices.
• Management overhead:
  Time spent provisioning phones, managing carriers, handling upgrades, and transferring numbers increases operational overhead.

Even when carriers offer promotions or bill credits, those savings are spread out over long contracts and do not eliminate the ongoing monthly costs or device management burden.

The Cloud Communications Alternative

Cloud communications platforms take a different approach by removing the need for dedicated phone hardware altogether.

• Typical cost: Around $20-40 per user per month

Rethinking the Role of Phones in Business Communication

Hardware-based phone systems increase cost, complexity, and risk by tying business communications to physical devices. While most offices may still benefit from having a small number of desk phones for shared spaces, reception areas, or client-facing roles, relying on desk phones as the primary communication method is an expensive way to solve what is ultimately a software problem.

Cloud communications solutions provide a better alternative by delivering flexibility, control, and continuity without requiring every employee to be tied to a physical phone, allowing businesses to communicate more efficiently without the limitations of traditional phone systems.

If you want to learn more about cloud-based communications, you can explore these helpful resources:

• Cloud vs On-Prem Phones for Non-profits
• Are Cloud Communications Right for your Non-profit?
• 5 Benefits of Moving to the Cloud With Your Business Tools
• 5 ways Colleges and Universities Can Use Cloud-Based Communication

Usherwood helps businesses evaluate and implement cloud communications solutions and VoIP managed services based on their operational needs, budget, and growth plans. Whether you are maintaining an existing phone system, transitioning to the cloud, or adopting a hybrid approach, our team works with you to assess your current communication environment, identify gaps, and recommend the right platform, devices, and features. Contact us today to schedule a consultation.