13 Cloud Phone System Myths Debunked
Read this before you buy a cloud phone system.
Here Are the Answers to 13 Common Misconceptions About Cloud Phone Systems. We hear these from business owners almost every week, and getting the facts right before you sign a contract could save you thousands of dollars and a great deal of frustration.
Common Misconceptions
1. “Cloud is always cheaper”
Not necessarily. When you factor in per-seat costs over 3-5 years, on-premise can be more economical for many businesses. A cloud system at $40 per seat per month for 20 users costs $48,000 over 5 years. An on-premise system purchased outright might cost $25,000-$30,000 for the same number of users, with minimal ongoing costs. The maths depends on your specific situation, but “cloud is cheaper” is not a universal truth.
2. “Cloud means no hardware”
You still need IP phones on desks and a quality internet connection. The PBX hardware moves to the cloud, but desk hardware remains. You are also likely to need a managed network switch with PoE (Power over Ethernet) to power those handsets, and potentially a new router capable of QoS configuration.
3. “Any internet connection will do”
Voice quality depends heavily on your internet quality. A single VoIP call uses about 100 kbps, which sounds trivial. But voice is intolerant of delay and jitter in ways that data is not. If your NBN connection experiences even brief moments of packet loss — common on FTTN connections during peak hours — your calls will sound choppy and distorted. Business-grade internet with QoS configuration is essential for reliable cloud phone systems.
4. “Cloud systems never go down”
Cloud systems depend on your internet connection and the provider’s infrastructure. Both can experience outages. If your internet goes down, your cloud phone system goes down with it. If the provider’s data centre has an issue, every customer on that platform is affected. A 4G backup device provides some resilience, but it is not a complete solution for businesses where phone uptime is critical.
5. “IT providers can install cloud phone systems”
Telephony expertise is different from IT expertise. Provisioning handsets and pointing them at a cloud server is the easy part. Designing call flows, configuring auto attendants, setting up CRM integration, troubleshooting call quality issues, and optimising the system for how your business actually operates requires specialist telephony knowledge.
6. “All cloud phone systems have the same features”
Feature sets vary enormously. Basic cloud offerings provide little more than dial tone and voicemail. Smart cloud platforms include unified communications, CRM integration, call recording, contact centre features, mobile apps, and video conferencing. Always compare feature lists in detail before committing.
7. “You can port your numbers instantly”
Number porting in Australia typically takes 1-5 business days for geographic numbers and up to 10 business days for 13/1300/1800 numbers. Your provider should manage this process and ensure there is no gap in service during the transition. If they tell you it happens “instantly,” be cautious.
8. “Cloud phone systems are maintenance-free”
While you do not maintain hardware on-site, cloud systems still require ongoing management. User additions and removals, call flow changes, auto attendant updates, CRM integration maintenance, and firmware updates all need attention. The difference is that this maintenance is handled remotely rather than on-site.
9. “You don’t need a telephony expert for cloud”
This is perhaps the most dangerous misconception. Cloud makes the infrastructure someone else’s problem, but the telephony design, configuration, and ongoing optimisation still require expertise. We regularly remediate cloud systems that were installed by IT generalists and are not performing to the business’s expectations.
10. “Cloud call quality is always crystal clear”
Call quality depends on your internet connection, your internal network, the codec being used, and the provider’s infrastructure. All of these variables need to be assessed and optimised. “It’s in the cloud” does not guarantee quality.
11. “Moving to cloud is simple and quick”
A well-planned cloud migration takes 2-4 weeks from initial assessment to go-live. This includes internet assessment, call flow design, system configuration, handset provisioning, user training, and number porting. Providers who promise next-day installation are cutting corners.
12. “Cloud systems scale automatically”
Adding users is straightforward, but scaling involves more than adding licences. Each new user needs a configured handset or softphone, proper QoS allocation, integration setup, and training. Your internet connection also needs sufficient capacity for the additional concurrent calls.
13. “You can always switch providers easily”
While your numbers are portable, your call flow configuration, auto attendant recordings, CRM integrations, and system customisations are not. Switching providers means rebuilding your entire phone system configuration from scratch. Choose carefully the first time.
Key Takeaways
- Do your research before committing to any phone system — cloud is not automatically better, cheaper, or more reliable
- Compare total cost of ownership over 3-5 years, not just monthly per-seat fees
- Ensure your internet connection is assessed before installation, not after call quality problems appear
- Choose a provider with genuine telephony expertise, not just the ability to provision cloud licences
- Understand exactly what features are included and what costs extra
Need Help? Talk to Phones Now
Get honest, expert advice on whether cloud is right for your business. We will assess your needs, your internet, and your budget to recommend the solution that genuinely fits. Call 1300 58 4000.