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Cloud services have made it possible for smaller businesses to enjoy the kind of sophisticated telephone systems that were once solely the domain of larger companies.

Voice over Internet Protocol (VoIP)

VOIP technologies can do practically everything that private branch exchange (PBX) systems are capable of, for a fraction of the cost. VoIP also allows small businesses to sidestep the expensive, complex infrastructure needed to set up a sophisticated call management system.

VoIP telephone systems look and function just like their traditional counterparts, but they use a totally different kind of technology. These systems transmit calls over the Internet, rather than through physical phone lines. While VoIP systems were held back by bandwidth limitations in their early days, this is no longer the case. Today, they are powered by complex algorithms that help manage call volume while conserving network resources.

VoIP systems also provide more flexibility than traditional phones, since they can communicate with any network-connected device. They support mobile workplace initiatives, since users need only a reliable Internet connection to be a fully functional member of the telephony network.

The rise of VoIP technology has sent PBX systems spiraling into decline. However, many businesses haven’t been as fast to adopt the cloud as one might expect. A recent study suggests that two-thirds of businesses are moving slowly in their adoption of cloud technology, still investigating it, or are reluctant to make the switch.

Underlying trends strongly suggest that the sooner a business adopts the cloud, the better off it will be. Cloud-based services are fast becoming the technological baseline for the modern economy, and companies that hold back or refuse to adopt it risk being left behind by more forward-thinking competitors.