www.fonality.com

Taking Business

Communications

to the Cloud

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To hear some people tell it, computing "in the cloud" is thegreatest innovation since the telegraph. Yet many business people are not so sure, especially when it comes to the central nervous system of their enterprise: their communications system.

Basing phone systems in the cloud has a number of advantages, but plenty of companies are satisfied with their trusty oldPBX systems. Perhaps they are leery of the Great-Thing They-Must-Buy-Now, considering that a new one seems to arrive every week. Whatever the reasons, only one in five businesses currently uses a cloud-based phone system.

Why are companies resisting the call to leap into the cloud? Why should they make the switch? Is there a way to get the advantages of a cloud-based system while holding on tothe dependability of traditional phone service? Fortunately, the answer to that question is yes.

The Cloud Isn’t New

You can't read three paragraphs of technology news these days without seeing somebody declaring "the cloud" as the solution to pretty much everything.

There's common sense behind the hype. Storing software, services, and data in a central location accessible to any device is leaps and bounds more efficient than scattering all that computing power on remote PCs, smartphones, and tablets.

But let's be clear on one thing: The cloud is nothing new. It's been around since 1878, when the first commercial telephone exchange opened for business in New Haven, Connecticut. Little more than a switchboard, the exchange centralized call-processing power for people connecting through a simple user interface - the telephone.

Early mainframe computers amassed processing power in the cloud. People who learned to communicate with the mainframe using punch-cards welcomed the arrival of innovative "dumb" terminals.

The rise of the personal computer and packet-switching routers dispersed computing power across vast global networks. It made perfect sense until the arrival of the 21st century mobile era, when a blizzard of new portable devices revived the demand for centralized computing power.

So now we're back in the cloud. But given that the cloud was with us 25 years before the Wright Brothers flew at Kitty Hawk, it's not like we ever really left.

The Cloud Today

Gartner research says cloud computing services to grow by 18.5 percent to $131 billion in 2013 alone, and it projects the industry will expand at a compounded rate of 16.8 percent through 2017.

The cloud can be free and easy like Google's Drive, which allows users to stow documents on Google's servers and share them with friends and colleagues. Cloud computing also can be complex and expensive, like the high-end design tools Adobe sells through its Creative Cloud service.

Gartner Research expects public cloud computing services to grow by 18.5 percent to $131 billion in 2013 alone

The common denominator in the cloud is efficiency: Instead of having to support software licenses across thousands of PCs or smartphones, IT departments update everything once in the cloud and deliver the software over high-speed Internet connections. Because cloud service providers have a vested interest in preserving clients' data, systems are built to be secure and redundant, keeping hackers out and preserving backups of everything.

But a recent Gartner report revealed one of the challenges of the push to move everything to the cloud: Only 8 percent of enterprise users are using the cloud for office-services software (primarily email). Similarly, only a fifth of businesses use cloud-based VoiPservices for their communications despite the prospects for saving money and improving efficiency by moving to these systems.

The Cloud Today

Clearly not all businesses are crazy about the cloud, but why the reluctance? In office systems, highly regulated companies like banks and utilities haveto make sure changing their office software passes muster with state and federal regulators. Industries that require extreme security like defense and aerospace want to keep their data under lock and key in-house.

In the VoiP sphere, small and midsize businesses want better choices. Most VoiP providers offer two solutions: an on-premises system or one hosted in the cloud. Either way, businesses often have to give up their standard telephone service to enjoy the cost savings and flexibility of VoiP. Some remain concerned about reliability.

Fonality is clearing the path for a third way: Hybrid systems that

preserve the dependability of traditional phone systems while taking

advantage of the Internet-enabled possibilities of cloud-based VoiP.

Why VoIP is Better

A traditional phone system is simple and reliable. But it can't do muchbeyond helping people talk to each other over a dedicated line.

VoiP gives businesses voice, video, text, and contacts management in a single user interface. Standard Internet technology takes much of the pain out of the setup and a suite of software tools creates an engaging user experience. Here's a quick look at some of the advantages of VoiP:

Collaboration ToolsToday's workforce is dispersed. Some are at home, some are in an airport, some are in the C-Suite. Whether they are sales people, executives, software coders, or production line supervisors, they all need to be able to share documents, swap emails, discuss strategy, and make sure they're all moving in the same direction.

Contact Center FeaturesVoiP gives all businesses the capabilities of a professional contact center that deals with huge volumes of telephone calls: organizing and directing inbound calls, documenting call volume, and providing a host of customer service, support, and telemarketing functions.

Why VoIP is Better

Improved visibility for managementThe best business VoiP systems tell managers where their workers are as long they're at work. They also allow employees to provide their preferred contact numbers so incoming calls always get routed to the right people. Tracking systems, meanwhile, provide performance metrics for contact center activities.

Integration with mobile devicesVoiP systems bring mobile phones into the company phone network. Calls can be forwarded directly to cell phones and tablet computers can be integrated into a company's communication workflow.

Centralized user interface with one vendorA single company designs a uniform interface and keeps everybody's phones, apps, and devices talking to each other. This saves a load of headaches for a company's IT support staff.

AffordabilityA dedicated phone line wastes a lot of bandwidth when nobody's talking on it. In contrast, VoiP lets phone calls share bandwidth with other data traveling on the Internet, which is far more efficient. That's why VoiPcustomers typically can expect much lower monthly fees and forget about long-distance charges.

Deployment Options

Hosted in the cloudA hosted, cloud-based system packages all VoiP services in a centralized off-site location. In the cloud, phone service costs can fall dramatically because the host takes care of all the software, equipment, training, and support.

This deployment leaves businesses dependent on their Internet connections, and for many that works well. Others feel like they need a more robust solution.

On-PremiseAn on-premise VoiP system is backed up in the cloud, but it stations equipment at the customer's site to enable communications via the Internet. The best systems combine the reliability of a traditional phone line with the rich array of VoiP features.

On-premise VoiP can be tailored to the exact needs of individual companies, and the best providers can set up the system so it automatically switches voice communications over to the traditional phone line if the Internet goes down.

What the future holdsIt's a safe bet that in 15 years, all wired telephone systems will be hosted in the cloud. It's simply getting too complicated for businesses to maintain on-site communications systems. And given that wireless is getting stronger every day, there will be less and less need for traditional phone lines.

Reservations about Cloud-Based Phone Systems

To many entrepreneurs, installing that first PBX system feels like tangible proof that their company's going to make it. They're getting enough calls from enough customers to enough employees that those calls need to be managed. Plenty of businesses never get that far.

So they wire up their PBX system and get back to work. They dial9 for an outside line and it works. It's not broke. Why fix it?

Companies have a simple explanation for not putting their phones in the cloud: force of habit. It's a comfortable habit that isn't causing problems, so they stick with it.

Trust is another issue for established business owners: Many are moreinclined to go with venerable, old companies. The cloud may have been around for more than a century, but cloud-based VolP is a relatively recent arrival, as are many of the companies providing the services. In contrast, their phone company may have been around for ages.

VoiP must be able to overcome one of the strongest forces in human nature: the tendency for people to do what they've always done.

Confronting Misconceptions about VoIP

There’s no doubt that some people’s impressions about business -quality VoiP have been colored by experiences with low cost providers of consumer services. Skype, for example, provides basic, economical voice and video services. As the saying goes, people get what they pay for.

Skype uses peer-to-peer networking. A "call" starts out on one computer, travels to a nearby computer that's also on Skype, it makes its way to an ISP, then travels through even more peer computers until the two users establish a data stream. Nobody is "in charge" of maintaining the quality of the stream.

Business VoIP

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Building a video stream across a multitude of points around the Internet doesallow incredibly economical video communications from around the world. Likewise, discount VoiP providers can optimize their networks to hold down costs rather than hold up quality.

That means hit-or-miss user experiences. One call will sound fine, another will have a low hiss and a third will cut off people's voices off in mid-sentence. The end result is that people who are familiar with low-cost VoiP have may not realize the quality of business VoiP is much higher.

Confronting Misconceptions about VoIP

Free and discount services meet the needs of thrifty customers, but the quality sets off alarms in the minds of brand-conscious business people. Picture the small-business owner trying to pitch her software services to a big potential client. Can she afford to make do with discount-quality voice or video?

Cloud-based VoiP providers face:

• Educating potential clients about the reality that business class VoiP is nothing like some providers of consumer VoiP.

• Convincing potential consumers that their service is optimized for the best possible user experience, not the lowest possible cost.

• Demonstrating that they can deliver telephone-quality voice and sharp streaming video in a package that costs substantially less than standard telephone service.

Providers that can do all this - and of course provide a stellar suite of features - are the ones that understand the communications needs of small and midsize businesses.

3 MAJOR POINTS BUSINESS CLIENTS MUST BE CONVINCED OF

The Business Case for Switching

It's not only about shaving the cost of every phone in an office. That's more like the appetizer. The entree is the savings in technology costs across a rich suite of VoiPservices.

Functionally, VoiP gives any office virtually the same suite of services used by large contact centers. A dedicated user interface makes sure contacts, email, incoming calls, videoconferencing, and more are always within a few easy clicks. And it's always the VoiP provider's job to keep all that software up to date, secure, and backed up.

All of these features fall under the umbrella of Unified Communications, which will continue to grow as innovations in bandwidth and processing power allow providers to pack ever more communication services onto desktop computers and mobile devices.

Furthermore, knowledge workers who bring their devices with them everywhere will gravitate toward companies that bake Unified Communications into their corporate structure. The best talent expects access to the best tools.

Another consideration: the complex interactions of all these tools makes it increasingly untenable for companies to support on-site telephone systems, especially in light of the money they'll save when outsourcing. It makes sense to leave phones to the phone experts.

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Getting Businesses to Trust

No matter how strong the case for cloud-based VoiP may be, the industry is crowded with younger providers that need to earn the trust of business owners, many of whom would just as soon go with more established brands.

The best VoiP providers understand why people are reluctant todive headlong into every new high-tech trend: infinite choices collide with finite resources. One option is to entice businesspeople with a small sampling that will make them want more in the years ahead.

A midsize business might want to try out VoiP features in single department. Another might want to turn its sales staff loose with a suite of customer-collaboration tools but isn't ready yet for a complete conversion.

And here's a way youthful providers can set themselves apart from long-of-tooth telcos: Offering plain-language contracts that are succinct, easy to understand, and free of surprises buried in the small print.

What to Look for in a Provider?

Feeling better about our old friend the cloud? Ready to reap the benefits of unified communications while saving money? Ready to leave the responsibility of managing a phone system to someone else and getting back to what you do best?

Here are four things to look for in a provider of VolP telephone systems:

1. A company you can trustYour VoiP provider must be willing to earn your trust by understanding your needs and providing VoiP services that are specific to the needs of your customers.

2. One focused on SMBsYour provider should have a track record of helping small business add high-end communication features that make it easier for everybody in your sphere of business - customers, employees, vendors - to stay in touch.

3. One that's moved beyond phone callsVoiP is about using voice, video, text, and high-end software to keep people connected. As long as people talk on telephones, calls will be a key component of VoiP, but the best providers understand calls are only a part of the equation.

4. A company that gives you optionsA hybrid offering combines the efficiencies of VoiP and the dependability of traditional phone service.

About Fonality

Fonality has built its business around helping growing businesses use their phone systems to become more competitive and successful. It has been developing Unified Communications systems since 2004 with more than20,000 clients serving more than 260,000 end users around the world.

The company's engineering team developed the Fonality Heads Up Display interface and patented hybrid solution to meet the unique needs of emerging companies.

Fonality provides business phone systems and contact center solutions designed exclusively for growing businesses. Fonality is the only provider that can deliver the same user experience in the cloud and on-premise, with innovative features that help small businesses save time, communicate more efficiently and reduce costs. For more information, visit www.Fonality.com or call 1-877-FONALITY.