Whitepaper Reaching for the Clouds Understanding the Growing Popularity of Cloud-Based Communications Systems
Reaching for the Clouds Understanding the Growing Popularity of Cloud-Based Communications Systems The development and rapid rise in popularity of cloud-based communications platforms and hosted telephony has now opened up this field to an unprecedented degree of radical realignment and healthy competition. The importance of effective business communications does not always receive the stress it deserves. It has been too easy to place communications in the business costs category rather than view it as an essential contributor to a company s profitability. This situation might have continued with little change but the radical changes in technology over the last two decades have compelled many companies to make a drastic reassessment. The PBX was the accepted business voice communications solution for generations its services indispensible in most transactions, and its faults tolerated in a similar way to the failings of an old and valued friend. Certainly different PBX-system manufacturers offered various options and design features, but in operational terms there were no major differences. This minor operational differential between systems combined with the many features on offer left businesses with a confusing choice. For this reason some companies ended up deciding which system to buy according to aesthetic appeal, or other similar minor distinctions, rather than making a rational choice based on sound commercial considerations. The development and rapid rise in popularity of cloud-based communications platforms and hosted telephony has now opened up this field to an unprecedented degree of radical realignment and healthy competition. This White Paper investigates the growing business appeal of the new communications solutions. A solid appreciation of these developments and challenges is vital for any business keen to maximize communica-
Over the last ten years the growth in hosted services has been startling. From e-mail and other communications services, it is now possible to host an impressive range of accounting, sales, and other vital business infrastructure services on the cloud. tions economies and enhance their competitive edge. A Cloudy Definition As you might expect from a term such as Cloud Communications, an exact definition tends to be rather hazy. Generally this term is used to describe a very broad concept that embraces the transfer of key communications services from fixed equipment to a virtual IT structure. From their beginnings in the IT infrastructure field, cloud-based services have now gained a prominent role in daily business communications. E-mail was one of the first key services to be floated up onto the cloud. This turned out to be a groundbreaking step since its successful implementation showed how easily businesses could manage without the need for equipment on-premises. It soon became apparent that a hosted system could deliver significant economies. These welcome cost savings having their roots in the transfer of maintenance and operations costs to the service providers, and in these providers abilities to customize service packages and pricing to the client business s needs. From a novel technology, cloud did not take long to develop into a mainstream business communications platform. Over the last ten years the growth in hosted services has been startling. From e-mail and other communications services, it is now possible to host an impressive range of accounting, sales, and other vital business infrastructure services on the cloud. Evidently this is no passing trend but rather the beginning of a revolution in how commerce is conducted. This is clearly indicated in a number of prestigious studies, for instance research done by the International Data Corporation (IDC). They recently forecast a 50% compound annual growth rate (CAGR) in hosted private cloud services, which should be worth over $24 billion by 2016. Unified Communications Another Cloudy Concept Unified communications (UC) is also characterized by a certain vagueness in the way the term is used by different parties. In general terms UC is best defined as the expansion of communications to embrace video, virtual office and other data networking services besides traditional voice services. The migration to UC services did not initially go smoothly. Voice over Internet Protocol (VoIP) services suffered many hiccups in their early years, particularly with regard to voice quality.
The POTS (Plain Old Telephone Service) has lost the battle to VoIP and other computerized system, and instant messaging and the universality of smartphones and other mobile devices has irreversibly changed the face of business communications The service providers research and development divisions rose to this challenge and recent technical advancements have improved the VoIP user experience to match the quality of POTS (Plain Old Telephone Service) calls. Businesses now recognize how the strength of VoIP lies in its versatility. VoIP supports call making and receiving from any device with a broadband connection. It provides a unified solution for voice communications embracing land lines, mobile phones, business premises and home offices. The technology offers rich possibilities for saving costly office space by allowing employees to work from remote (home) locations combined with a number of work outsourcing options. The costs of installing and maintaining traditional PBX systems is another major factor that leads firms to seriously consider opting for VoIP. Besides savings on fixed equipment expenses, the benefits of purchasing customized services packages and combining phone and Internet bills add to the attractiveness of this option. Even if you would prefer for nostalgic reasons to continue to rely on your legacy business phone system, today s highly competitive commercial environment does not give you this luxury. The POTS (Plain Old Telephone Service) has lost the battle to VoIP and other computerized system, and instant messaging and the universality of smartphones and other mobile devices has irreversibly changed the face of business communications. We are witness to a dynamic communications revolution where innovations are continually expanding the range and qualify of multi-media services on offer. You can debate whether the demand is being propelled by the technology, or is it technology developing in response to genuine commercial needs, but the implications for the business world remain the same. It is no longer feasible for the typical small or medium sizes business to continue relying on their old systems and forgo the impressive economies and speed and ease of communications enjoyed by those who fully exploit these new technologies. Never Out of Reach The information technology (IT) cloudburst has dealt a blow to the ideas that a business must to be conducted from a fixed location, and the understanding that it is acceptable for employees or suppliers to be out of contact when you need them.
The tools are now available to set up sophisticated video, audio and instant-messaging to sustain qualify communications between a central office and employees in remote locations You are also now able to use hosted-phone systems to handle communications via different media and at various locations while displaying a single business phone number Many businesses now operate with many of their employees at remote work stations, and they keep in contact with their staff and business contacts through a variety of media. While this arrangement allows for both flexibility in working hours and greatly improved speed and accessibility of communications across the firm, there has also been a downside with serious information security challenges, and the challenge of maintaining the desired level of collaboration with employees working from remote locations. Ensuring the privacy of sensitive business data and preventing unwanted intrusions into employees private time are issues that need their own white papers. In this paper we will place the focus on the collaboration issue. The development of remote working has brought challenges largely unknown twenty or thirty years ago. The question of how team members can best coordinate their activities was once understood in terms of developing a team spirit, setting meetings at mutually convenient times and similar considerations. The physical separation of employee locations creates a situation where daily contact or even weekly meetings are not always practical. This growth of telecommuting might negatively impact productivity if work coordination suffers. Another issue of concern to employers is the recent trend of employees preferring to use their own mobile devices for business calls. When the employer supplied phones standardization was easily achieved. Although there are some expense savings through reduced phone purchases, the equipment standardization issues have multiplied with the number of private devices coming into use. Fortunately united communications can provide durable solutions to the challenges of maintaining a high level of collaboration between such a distributed workforce. The tools are now available to set up sophisticated video, audio and instant-messaging to sustain qualify communications between a central office and employees in remote locations. Bandwidth requirements are on the decline, thus making possible a quality and speed of communications that was unattainable even a few years ago. Great effort has also been invested in improving the user-friendliness of new communications technologies. Googledocs and other key players in the collaborative online working environment have done
a great deal to make co-operative online working that much easier. You should also consider the growing range of telephony equipment and the expanding number of features united communications supports. Call forwarding is proving particularly useful for making sure that calls and messages reach people regardless of their location and whether on not they are in transit. You are also now able to use hosted-phone systems to handle communications via different media and at various locations while displaying a single business phone number. This feature allows your business to present a corporate identity with a single contact number displayed regardless of the phone device used. Going Visual If you were asked to rate recent major business communications developments in order of importance, the rise of video communications would be high on the list. Although video conferencing has been available for some time its popularity is increasing in response to technical improvements in broadband networking combined with falling costs. The ability to conduct video conferencing from portable computers and mobile devices has been particularly important in this connection. In addition to the convenience of conducting meetings in this way, it also brings businesses valuable savings by reducing travel costs. While you might argue that video can never be a full substitute for the traditional face-to-face personal meetings, its many advantages seem set to ensure that it will continue to rise in use dramatically. Video is also increasingly popular for communications with customers as well as employees. Becoming More Cloudy This may or may not be your local weather forecast but it certainly seems to be the forecast for the future course of business communications. Although you may want to find an alternative to the The Cloud as a catchall term for this communications revolution, we are forced to continue to use the term for want of a more precise expression to apply to all these multi-media developments. What we are effectively experiencing is the transition of the business from a telephony service operator to a subscriber to a feature-rich set of services provided and managed by a third party. Although issues of convenience and the range of features available are key attractions, financial advantages probably remain the major inducement for the migration to cloud platforms. The savings on capital equipment, depreciation, and system maintenance and personnel costs are augmented by the fact that monthly payments for cloud services are counted as business expenses. Although for some specific businesses the advantages of maintaining their own communications systems are going to continue to outweigh the benefits of united communications, for many small and medium size businesses, the pull in this direction seems set to intensify. Yet, as in so many other business areas it pays to move cautiously, analyze carefully the relevant service-packages on offer, and select what most closely matches your special business needs and budget. For a free review to determine your best options, you can call us at 1-800-256-2925.