Capturing the Important Evolution of Business Communication Technology

Digital transformation is the term being used to describe the massive shift from premise-based business hardware to cloud-based application software. The “business telephone system” has quickly become the technology industry’s (OPX vs. CAP-X) transformation poster child. Traditionally, businesses with just a few users to businesses with thousands of users would purchase or lease communications equipment to be housed on location. The equipment would connect to copper/analog POTS (Plain Old Telephone Service) or digital PRI (Primary Rate Interface) lines and require frequent firmware updates. Even though these systems evolved from mechanical to software-based management, they remained limited in capacity and expensive to maintain.

Around the mid 1990s, a progression in the business communication industry that came to be known as VOIP (Voice Over Internet Protocol) entered the arena. VOIP offered businesses the ability to reduce monthly measured long-distance charges by rerouting specified call traffic over a fixed-rate internet connection. Other VOIP benefits Capturing the Important Evolution of Business Communication Technology included the ability to transfer inbound calls to any phone anywhere in the world, which minimized or eliminated the need for multi-location companies to purchase or maintain expensive, wide-area networking circuits.

Since the processing capabilities of VOIP systems are cloud-based, businesses that have adapted VOIP technology no longer need to worry about outgrowing their systems or dispatching a service technician to their location. Troubleshooting and system repairs can be done automatically or remotely from a 24/7/365 network operation center. In the event a phone is rendered nonoperational, a replacement phone can be shipped overnight, preprogrammed and ready to go.

The next evolution of the cloud-based phone system has been identified as UCaaS (Unified Communications as a Service). UCaaS grew beyond the idea of simply replacing the premise-based equipment to integrating additional business applications, such as web conferencing, SMS text messaging, mobile phone integration, web based white-boarding, and many other business features, into a single desktop user interface. In a growing number of businesses, UCaaS will eliminate the need for a physical phone on the desktop. The business phone system is no longer a separate network with isolated and specialized hardware. It has become another software program sitting on a global network with virtually limitless possibilities.

No matter which communications technology category your business is in today, the impact of “digital transformation” will weigh heavily on your future operations. Traditional POTS lines are being replaced with analog emulation, equipment manufacturers are dropping out of the business phone system market, and technical training has shifted from maintaining premise-based equipment to building cloud-based, artificially intelligent operating and management systems. As more customers migrate to cloudbased systems, additional carriers are throwing their hat into the provider pool and adding greater communications and collaboration products to the already large technology product portfolio.

The process of evaluating your business communications technology, determining the providers to partner with, and deciding what products to utilize can be a monumental but a vital undertaking. To simply focus on the latest and greatest set of features or the most competitive per seat cost could prove to be an exercise in futility.

The most successful cloud-based migrations are the result of a much deeper investigation into the infrastructure of the provider, the relationship between potential bandwidth consumption and available bandwidth, the quality of bandwidth, the creation of a disaster recovery plan, the system management tools, and the ability to train staff. Too many systems are sold based on a large portfolio of capabilities but when installed and programmed, provide little more than basic call processing. For instance:

• Few businesses take the time to preprogram automatic call forwarding options in the event of a power or internet outage.
• New or smaller UCaaS providers may be limited to a single switch location. In the event the carrier switch was to experience any type of service interruption, the stated internetbased rerouting would prove useless.
• Businesses that operate 24/7/365 may struggle with some providers who maintain the traditional customer service hours of Monday through Friday, 8:00 a.m. to 5:00 p.m.
• Some providers’ customer service may only be available via email.

One of the most substantial evolutions of the VOIP and UCaaS systems is illustrated in the variety of available pricing plans. When VOIP was first released to the market, a one-to-one relationship was created: one station or seat to one telephone line or call path. An average introductory seat cost was around $25 per month. This was typically very competitive to the monthly POTS line cost and provided a much greater list of features. Many small businesses could justify making the technology shift due to the near dollar for dollar cost comparison. Larger businesses that used a line-to-station ratio (for example, five telephones to one telephone line) had a much more difficult task in justifying the one-toone ratio of VOIP.

Many VOIP and UCaaS providers have since introduced basic seats and the ability to establish a designated number of call paths across an enterprise system. Today, seat cost can range from $5 dollars monthly for a basic phone to $120 monthly for a high-end call center seat. Many carriers will offer to rent phones throughout the contract term and include service or replacement insurance. A growing number of carriers offer to consolidate internet access with the UCaaS, network management, and a redundant 4G/5G LTE wireless back-up on a single invoice. With all the different features and pricing plans available today, UCaaS is a great option for businesses of every size.

The world events of the past couple of years have clearly illustrated the importance of designing, acquiring, and maintaining flexible, reliable, and secure business communications technology and have proven that a shift from premise-based staff to remote-working staff is not limited to earthquakes, fires, and floods. Recent crises have also shown that businesses need to remain operational and employees and staff need to remain connected. Even if you have already migrated to a cloud-based communication system or are curious about the operational benefits of migrating, acquiring a current and accurate understanding of the available technology options is a good business decision. Have an open mind about shifting revenue from older, outdated business expenses to justifying and acquiring the newer, more cost-effective technology that will best suit the short- and long-term requirements of your business.