Technology Disruption and When to Upgrade to UCaaS
In the year 2000, VoIP-based phone systems disrupted PSTN-based PBX technologies by leveraging the internet as a backbone. Hardware-based, premises systems greatly enhanced features and flexibility, such as unified communications (UC), system administration was simplified to the extent that it became an internal office function, and “light” contact center functionalities came standard. While all this is common today, a second disruption is causing a sea change in the unified communications marketplace, namely, the Cloud.
Moving UC to the cloud (UCaaS) shifts provisioning, operations, and management to the cloud provider. The cost of entry is significantly lower due to the pay per seat pricing model, and rapid service deployment offers businesses scalability to right-size their investment and accommodate seasonal/variable headcount. But is UCaaS right for your business?
Some common questions from customers:
Q: Where is UCaaS on the adoption curve?
A: According to Nemertes Research, about 20% of companies have already migrated to the cloud for unified communications (UCaaS).
Q: We have a traditional PBX with PRI, POTS and/or ISDN circuits. How urgent is migrating to the cloud for my organization?
A: In 2015, Network World predicted the end of public switched telephone networks (PSTN), writing, “Replacement of the PSTN with a global VoIP-only network delivering service provider wired voice and wireless voice is not a question of if, but when.” As of 2019, roughly 20 states have authorized the end of copper land line servicing. 41 states have reduced or eliminated oversight of wired telecom.
Q: I’ve already invested in a premises-based UC system. How urgent is migrating to the cloud for my organization?
A: In 2017, Nemertes found that 40% of organizations are using or planning to use cloud telephony services. In the case of PSTN-Based Premises systems will become unsupported products. At this time, providers are not investing in premises-based UC platforms at the rate they are investing in their cloud-based counterparts. As competition increases, this trend will accelerate. When will premises-based systems become wholly unsupported? Only time will tell. However, in order to take advantage of advanced applications offered in the cloud, such as Contact Center (CCaaS), workforce management, etc. customers may need to move their UC platform to the cloud to take full advantage of the integrations.
Developing a cloud migration roadmap early can be beneficial. Customers tend to consider upgrading their system when:
Considering other technology upgrades. Moving to a Cloud-based CCaaS solution often requires moving UC to the Cloud.
Anticipating growth - Investing further in aging technology vs. moving to newer technology
Facing system support issues. When premises system becomes problematic and partially or wholly unsupported.
Underlying telecom agreements expire. Expiring connectivity agreements are a good time to consider making a move, as the connectivity required for UCaaS is generally less expensive than the PRI/SIP trunking that’s generally required for premises systems.
In the end, simply eliminating the support and administration costs associated with premises UC systems often justifies the move to cloud based UC (UCaaS). But making the move can be hard to justify without hard numbers and understanding the differences between competing providers. We can help on both fronts.