November 7th, 2025
In the current climate, cost control has become a priority for many businesses. However, not all costs are visible on the bottom line. Legacy phone systems can push up costs in other business areas due to the impact of the outdated technology. In this article, we'll explore the unseen costs of running a legacy phone system and how to eliminate them from your business.
What are the hidden costs of legacy phone systems?
When your business relies on a phone system that's been in place for as long as you can remember, you may not pay much attention beyond the monthly bill you receive. However, with a legacy phone system, you'll have many hidden costs that affect your business:
Regular hardware and software maintenance
Legacy phone systems typically use on-premise hardware. That means you're responsible for the support and maintenance of the physical infrastructure as well as the software that runs on it. As this equipment reaches its end of life, the support available becomes more limited. There will be a smaller number of vendors providing the specialised support you need to keep your phone system running effectively.
Lack of internal knowledge
With ageing technology, a common challenge is having sufficient in-house expertise. While that internal knowledge may have been abundant when you first implemented your phone system, it's likely to have shrunk in recent years. Bridging the knowledge gap can be expensive. If a component stops working or you need to change some settings, it will be harder to find someone to do it, and the costs will be higher.
More frequent outages and downtime
Older systems are more likely to fail. Due to their age, the technology will simply suffer more component failures. However, they are also vulnerable to hacking and cyber threats due to fewer security controls. Every outage has a business impact, and the more downtime you experience, the greater the cost to your business. Even without a systems outage, legacy phone systems can hold back your business. They are harder to integrate with your latest software applications, meaning lost productivity.
Poor flexibility
When your business grows, the legacy phone system doesn't grow with you. It may not have been sized to handle the call volumes you now make and receive or support the size of your teams. If you expand globally, you need a phone system that works wherever your people are based. As the structure of your business changes, the system may be unable to cope. With hybrid and remote working now widely used, as well as the emergence of digital HQs, your phone system needs to be as flexible as your business.
There is an alternative to legacy phone systems that avoids the problems of using outdated technology - cloud telephony.
What are the benefits of cloud telephony?
Cloud telephony relies on the internet to handle your phone calls and other communications. Instead of physical hardware in your office, these phone systems are hosted in the cloud, similar to many software applications. Using cloud telephony has many advantages:
No hardware required
You no longer need on-premise hardware to run your phone systems. As the systems are hosted in the cloud, there's no physical infrastructure for you to maintain or support. This approach eliminates ongoing maintenance costs and avoids the risk of business interruption from system outages.
High reliability
Cloud telephony uses the latest technology to provide a robust phone service run by dedicated technical experts. You don’t have to retain the technical knowledge in-house for support. What's more, regular security updates protect you from malicious cyber threats. The service also supports disaster recovery (DR) and business continuity.
Cost-effective technology
Hosting your phone systems in the cloud means you achieve significant CapEx savings, as only a minimal outlay cost is needed. What's more, you benefit from long-term savings without product maintenance costs and with lower-cost calls.
Flexible and scalable solution
With cloud telephony, your phone system is not limited by the size of the hardware on your site. Instead, your phone system is virtual and can scale whenever needed. That makes it more flexible to support the growth of your business through easy-to-configure systems.
Future-proofed with integrations
Cloud telephony is designed for the modern workplace, so it integrates seamlessly with the rest of your business. Microsoft Teams and other collaboration tools work with your phone systems to ensure your people can work together from anywhere
Legacy phone systems add unnecessary costs to your business through outdated technology, system inflexibility and hardware maintenance. Cloud telephony is the cost-effective alternative designed for the modern workplace.
