Over the last few decades, growth in the cloud-based (VoIP) phone service industry has been massive. Here are some of the statistics:
- By 2020, VoIP will have approximately 204.8 billion subscribers worldwide. (Source: Future Marketing Insights)
- VoIP is the fastest-growing industry in the world. (Source: IBISWorld)
- Total revenues for U.S. VoIP service providers reached $14 billion in 2019 (Source: IBISWorld)
- VoIP is now the #1 telephone choice by U.S. businesses. (Source: Software Advice)
- 70% of businesses have already deployed Unified Communications (UC) in the cloud, or plan to do so in the near future. (Source: InformationWeek)
- The hosted VoIP industry is expected to grow at a CAGR of 7.8% between 2016-2024. (Source: Persistence)
At Carolina Digital Phone, we have seen this monumental growth first-hand — and it has not surprised us. From day one when we launched in 2000, we had no doubt that cloud telephone services would be the future of telecommunication, because the business case was not based on hype or buzz. It was, and remains, rooted in rock solid fundamental advantages that include:
1. Cost Savings
With a cloud-based phone system, there are no major up-front CapEx costs, no maintenance costs, no upgrade costs, no domestic long distance costs, and no technical support costs. Everything is handled by the off-site Solution Provider, and the system runs on the same network that a business already uses for data communications (e.g. email, accessing the web, transferring files, etc.). While the savings profile for each business is based on unique variables, many save up to 50 percent a year vs. a conventional phone system, and some save more.
Unlike a conventional phone system, a cloud-based phone system is built for versatility and scalability. For example, numbers can be transferred from one location to another by simply moving an IP phone and plugging it in. What’s more, adding new numbers or extensions takes a matter of seconds, and does not require technicians to visit on-site or dig up cable.
3. Call Quality
Cloud phone systems feature crystal-clear HD audio that is not just on par with conventional landline phone systems, but in many cases is superior. This is because the insulation for underground copper wire used by on-premise phone systems degrades over time, which leads to annoying static and dropped calls — especially in damp and wet weather.
4. Advanced Features
While business owners, CEOs, CFOs, and other executives in charge of the budget appreciate the major cost savings of a cloud phone system, employees enjoy the advanced enterprise-grade calling features that make their day-to-day work more productive, efficient and enjoyable. Some of the most popular features include auto attendant, voicemail-to-email, live call transfer, instant messaging, presence, video conferencing, music/messaging on hold, and the list goes on. Many of the advanced features that come standard with cloud phone systems are not supported by conventional phone systems, or are only available at a very high price tag.
5. Total Mobility
According to IDC, by 2020 three out of four people will work remotely. A cloud telephone system is ideal for supporting a distributed workforce, or “road warriors” like technicians and sales professionals who spend the bulk of their time out in the field. Remote workers can connect to the system and make/receive calls through an app on their smartphone, or login through a desktop or laptop. They can also forward calls to any other number, including home office landlines.
6. Business Continuity
Cloud phone systems use a geographically dispersed cloud infrastructure to stay online and operational during a local power outage that may last anywhere from a few seconds to a few days. During these outages, businesses can continue making and receiving calls through their smartphones and tablets, or forward calls to other locations that are unaffected by the outage.
Last but certainly not least, cloud phone systems are highly secure, employ a range of anti-fraud technologies and tools, and feature a guaranteed 99.99% uptime standard. They also support E911 calling for emergencies.
The Bottom Line
The cloud phone service industry is booming. This is not because the VoIP “hype machine” is working nonstop. It is simply and honestly because the fundamental advantages described above clearly appeal to businesses, schools, government agencies, and non-profit and organizations of all sizes. This means that while industry growth to date has been immense, it is not going to wane. Rather, it will only get bigger and stronger in the years ahead — and we will be there to help lead the way!