SMBs face many new challenges in the post-COVID business environment. They must incorporate various tools into their operations to meet shifting requirements like remote working and online customer service.
The old way of handling technology — using on-premises solutions — is driving up costs, hampering productivity, and affecting the customer experience.
Legacy software and infrastructure also restrict companies' ability to leverage the latest technologies to support advanced functions, such as mobile and contact center use cases, which are critical for staying relevant and competitive.
Unfortunately, less than half of SMBs have fully migrated to the cloud. The rest are missing out on the massive cost-saving and revenue-generation opportunities offered by the latest technologies and business models. Their legacy systems are hurting their bottom line.
If you're still on the fence about moving to the cloud, here's how ditching your legacy system can save you money and minimize unpredictable costs:
1. Reduce upfront and overhead costs
On-premises systems require ongoing, hands-on maintenance. You have to hire an in-house team or a managed services provider (MSP) to perform various tasks, such as upgrading software, installing patches, monitoring security, and complying with regulations — which can increase your overhead expenses significantly.
You also have to make a substantial upfront investment to purchase the hardware you need to run on-premises systems and set aside a budget to maintain the equipment. Plus, you must rent the space to house the servers and shoulder the cost of climate control to ensure the equipment's proper functioning.
On the other hand, a cloud platform vendor is responsible for maintaining the infrastructure. You don't have to hire a large team to manage and upgrade the software or hardware — the cost is covered by your monthly fee. You can focus your budget on strategic initiatives and grow your business.
2. Avoid unpredictable expenses and downtime
It's not if, but when, a piece of costly on-premises hardware (e.g., server) breaks down and requires expensive fixes. Not only do you need to pay for the repairs or replacements, but you also have to bear the cost of the downtime when your team can't work, make sales, or serve your customers.
Keeping a legacy system in tip-top shape is challenging. You don't know when or how much you may need to spend on fixing equipment. Many businesses have to set aside a sizable budget for these unpredictable expenses, which can impact their cash flow and financial health.
Most cloud platforms offer subscription plans. The predictable monthly fee helps take the guesswork out of your budget forecast. You don't have to worry about surprise bills and unexpected expenses. You can also shift from capital expenses (CapEx) to operating expenses (OpEx) to improve your financial health.
3. Streamline tech stack and stay competitive
SMBs that use legacy software are likely stuck with numerous point solutions, which are costly to maintain and often impossible to integrate. In fact, the fragmented nature of their IT infrastructure could be costing thousands per employee and impacting productivity gains by as much as 528%.
Moreover, legacy solutions can't keep up with fast-changing market demand. When companies need new features, they have to invest in (yet) another tool or risk being left behind. But adding new software in a piecemeal manner often drives up IT costs and causes a frustrating customer and/or employee experience.
On the other hand, it's easy to integrate various functions into a cloud platform. A reputable vendor is up to date with the latest market trends and requirements. It frequently rolls out new features to help you stay relevant and competitive in today's digital business environment without added costs.
Additionally, many cloud providers offer packages tailored to specific use cases (e.g., contact center, remote collaboration) based on the latest best practices, so you don't have to cobble together different point solutions.
A cloud-based all-in-one communication platform for SMBs
GoTo Connect combines phone, meeting, and messaging functions into one easy-to-use cloud platform. You can consolidate your unified communications (UC) tech stack to reduce IT costs, increase productivity, and deliver a modern employee and customer experience.
We offer an enterprise-class phone system tailored to the needs of SMBs. You can take advantage of 100+ features, including video and audio conferencing, screen sharing, messaging for 1:1, group chat, team channels, file-sharing, and SMS for external messages to meet fast-evolving business requirements.
Our cloud UC platform gives you access to the latest technology at a flat and affordable monthly fee. You can deliver a top-notch customer and employee experience without substantial upfront investment, high maintenance costs, or unpredictable expenses.
Learn more about our simple and secure cloud UC system and see how we can help you stay ahead of the curve.