Cloud communication platforms are beginning to gain a foothold in the enterprise communication space. As an efficient and cost effective communication platform, organizations are training their sights on cloud telephony solutions.

What is cloud communication?

Cloud computing refers to providing computing power and storage resources via an Internet-based computing platform. Cloud communication solutions are also referred to as Software as a Service (SaaS) solutions. Enterprises can host cloud communications solution in their company data centers, securely connect their remote workers to the enterprise application network, or in some cases, select a third-party hosted cloud solution. Cloud communications solutions leverage the cloud as a way to communicate with users. While the cloud has a reputation of reducing the resources that are used to support communications infrastructure, there are plenty of cloud communication platform offerings that are lower cost.

Why are businesses moving to cloud telephony?

The push towards an on-demand economy is forcing businesses to reevaluate their communication strategy. It is now apparent that a dedicated PBX system, still very much in fashion, cannot meet the needs of businesses in the era of always-on connectivity and ongoing shifts in productivity and business processes. As a result, a shift towards cloud-based solutions is in the process of taking hold, with the cloud telecommunications market expected to grow by a CAGR of 9.2% between 2014 and 2020. Businesses are increasingly turning to cloud telephony solutions because they are easy to deploy and maintain. Cloud telephony solutions also enable a shift from traditional annual maintenance contracts to subscription-based pricing models, which are scalable, flexible and economical.

How businesses are changing their strategy

Businesses are struggling to keep pace with the latest technology trends and services. Mobile devices and applications are vital to their business, yet many organizations are missing out on the ability to communicate with their customers via their mobile devices. The increase in popularity of cloud telephony, and mobile devices like the iPhone, has now brought cloud telephony to the forefront of the enterprise technology conversation. As companies begin shifting towards a flexible and scalable environment, they are looking for ways to balance their technology choices. Customers now have greater access to their customers, and businesses need to consider these changes in their planning and strategy.