May 27 2026
Digital Workspace

Fact or Fallacy: Can Businesses Count on Cloud-Based Phones?

Administrators should reconsider myths about softphone adoption.

Phone systems have come a long way since the days of switchboards, key switches, Centrex and early VoIP. They encompass many services ranging from voice, texting, paging, Internet of Things monitoring, smart interactive voice response, video calling and more. Managing communication infrastructure in the cloud and stratifying diverse systems with multiple vendors can be cost-effective when deployed thoughtfully.

Early VoIP had mixed results, and problems were rife. Poor phone quality, frequent outages, ugly integration and occasional insane administration with menu trees from hell drew many complaints. 

But much of that’s been fixed, and solidly so. Let’s bust some myths about cloud-based phones.

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Fact: Cloud-Based Phone Systems Have Good Call Quality 

When the infrastructure is designed correctly, most VoIP equipment is equal to landline service in quality. 

Yes, there are things that can go wrong to affect calls. Stick 40 customer service reps in the same room with bad headsets, and madness ensues. Excessive latency, poor call center distribution homing and routing (with multiple centers to reduce latency), hosts with weak or clogged routing capacity and overloaded DNS servers, overcapacity interactive voice response (IVR) front-end scanning — all can make a good call sound ugly or even drop out. Design for scalable capacity pays handsomely in call quality. 

Today, consoles give real-time information about call drops, incompletes and out-of-tolerance wait times, all in a dashboard. Cloud-based phone systems have both inherent extensibility and scalability, unlike an obsolete PBX, where adding a new line was a chore. 

Fallacy: Migrating to a Cloud-Based Phone System Is Too Complex 

Cloud phones aren’t the culprit; phone systems are complex because modern communications are complex. Mergers of intersite systems with varying gradients of features from different eras make a switch to cloud-based phone systems a daunting proposition. Multisite operations can be entangled with legacy equipment providing different support functions from incompatible vendors.

Cloud-based phone systems must implement a superset of functionality to be viable. This is why changing familiar features requires training. Plans often include graduated site cutovers, allowing rapid debugging as each site implements cloud-based phones and integrates new features.

When implementing cloud-based infrastructure, training time is reduced, both for administrators and users. Many systems offer user controls that can be accessed by smartphones or desktop computer apps. Help desk costs can be reduced by training videos, seminars and on-screen help functions. 

35%

The percentage of organizations that plan to move most of their remaining applications to the cloud in the next three years

Source: CDW.com, “What’s Next in the Cloud?” July 2024

Fallacy: Spotty Internet Service Makes Cloud-Based Phone Systems Unreliable 

It’s 2026, and internet service levels have never been better. For high-reliability systems, multisite/multihomed cloud-based infrastructure can use auto-cutover (which deploys when circuits become obstructed or jittery, or show high latency), although call drops may still happen. Reconnections are frustrating, but tenable for most. It won’t happen often, and a single console will reveal where congestion and troubles exist. 

Fact: Setting Up a New Cloud-Based Phone System May Be Expensive

This is partially true. Much depends on the current level of (and satisfaction with) an existing VoIP system. Many VoIP phones work perfectly with a cloud-based host rather than an on-premises server. Older key switches, PBXs, local network infrastructure and internet circuits may require adaptations and likely upgrades, along with training and other costs.

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Fallacy: Cloud-Based Phone Systems Are Not Secure

This is a myth. Encryption is usually standard, and advanced encryption is available in many systems, with little or no effect on call quality or latency. Some systems offer data retention and call center recordings as a default option. The encryption keys and data storage, of course, must be solidly protected. 

Fact: Cloud Phones Have Strong Caller Identification

All caller identification data used for screen-pops, call center routing and other in-bound controls are available with cloud-based phones. Short Message Service and Multimedia Messaging Service routing can be complex; some systems can perform autocensorship and text analysis for proper destination routing. 

DISCOVER: The top 3 ways to master operational management in multicloud environments.

Fallacy: Users Will Lose Features They’ve Grown Accustomed To 

Most cloud-based systems have a mind-boggling but sensibly arranged set of preprogrammed features that can be administratively defined from presets, and the same for user feature sets. Training time is often minimal, especially for users migrating from current VoIP infrastructure. The wheels have already been reinvented, so to speak; often, as templates to customize. 

Fact: All IVR Has To Be Reprogrammed 

This is partially true, but with a caveat. Inbound IVR apps can have added language, noise reduction features and higher quality of routing translation. These can also work with teletype-enabled applications and other features that give people with disabilities more control over their interactions with a communication system.

Fallacy: Cloud-Based Phones Will Never Replace Local Support

There are great savings to be had in lower support costs, but the availability of rapid, site-specific detailed knowledge makes a quality difference in overall communication system operations. 

One advantage of cloud-based phone communication systems is scale. Site amalgamation, with a single support system, is another advantage. Cohesive infrastructure and ease of administration reduce vendor complexity and support familiarity with communications equipment across many locations, anchoring common skill sets among employees. 

No cloud-based communication system will work without an assessment, implementation plan and graduated cutover. No one argues that it’s not a forklift upgrade endeavor. Deployment requires thinking about outcomes, connectivity upgrades, training, and both capital and operational expenses. But the payoffs are highly flexible feature sets with systemwide monitoring and telemetry consoles, scalability, site amalgamation and sophisticated communication systems architecture.

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