Business communication has evolved over the years. Today, companies are replacing their conventional phone systems with modern communication technology known as Voice over Internet Protocol (VoIP). Being a cloud-based technology, VoIP has revolutionized the communication infrastructure across all business sectors. It easily integrates chats, syncs applications, and provides real-time call data and analytics; thus enhancing organizational productivity. In short, the emergence of VoIP has changed the name and face of business communication.

What is a Virtual Phone System?

  • A VoIP-based, cloud-based communication technology that provides cost-effective calling facilities
  • It helps companies to schedule calls, organize contacts, and maintain professionalism in communication
  • Using the virtual phone system, one can never miss any call and can talk with clients or customers on-the-go
  • Its dynamic technology, easy-to-use software, and customized features have made it a “need” among today’s business segments

Emergence of the SaaS Industry – Facts & Figures

  • Software-as-a-Service shortly referred to as SaaS, is a cloud computing service that offers a comprehensive range of customized modules and dynamic applications
  • With its various layers of networking and communication services; SaaS provides need-specific solutions and enhances the user-experience of various online services
  • The concept of SaaS originated in the 1960s when IBM and other software companies started a service agency business called utility computing
  • The company operated from its worldwide data centers and offered database storage and computing power solutions to banks and other organizations
  • Utility computing gradually developed its technology, and in the 1990s, it successfully expanded the network, reach, and efficiency of cloud computing systems, thanks to digitization
  • It also established a new standard of centralized computing known as Application Service Providers (ASPs)
  • The SaaS model is an extension of ASPs. It aims at hosting and managing the third-party independent software vendors within a cloud environment, at a more cost-efficient price
  • SaaS is easy customization, highly flexible, and quickly integrates with other applications. It is convenient and user-friendly. All these factors have increased SaaS usage among major business segments
  • During 2011-15, SaaS increased its market share by 50%
  •  In 2016, 54.3% of companies already operated from a private cloud environment. 30.9% of global companies are going to adopt SaaS model in this year”
  • Today, SaaS is globally used across most business sectors. Its multi-tenant architecture, easy-to-configure software, and high compatibility with OS fulfill specific business requirements, in a cost-efficient manner
  • Besides MNCs, small companies are also looking forward to using SaaS technology for simplifying their business communication
  • Presently, 64% of small businesses prefer using cloud computing software for enhancing growth and productivity
  • Legacy vendors occupy 1/4th of the total SaaS market
  • According to industry forecasts, the use of SaaS by small business owners will increase by 78% in 2020

How are Virtual Phone Systems benefiting SaaS Industry?

Virtual Phone Systems is a SaaS component that streamlines the communication system in business organizations. The dominance of cloud computing communication software has gradually increased the use of virtual phone systems, across most enterprises. This has benefited the SaaS industry in the following ways: 

  • Flexibility
    Virtual communication systems are simple, easy to use, and flexible. Using it, users can add various layers of functionality and meet specific communication requirements. Besides flexibility in usage, the software offers flexible plans. Based on specific needs, users can subscribe to their desired plan and maximize the use of other SaaS products. Research confirms that the flexibility of VoIP systems is increasing its popularity by 17% (year-on-year) and so its contribution to the SaaS industry. 
  • Cutting-Edge Technology
    With its advanced features and cutting-edge technology, virtual phone systems allow businesses to leverage their dynamic features and improve their communication infrastructure. Its new-age technology provides voice mails, call backup, real-time call records, and live call analytics. It helps companies to maintain quality, increase security, and enhance the reliability of their communication systems.
  • Powerful, Effective, and Efficient Service
    Virtual phone systems have powerful technology that allows users to transfer calls, route calls, forward important calls to the relevant person, and receive calls from personal devices. Together with technology, its effective services, and efficient call management features have increased its adoption by 60% in 2016-17
  • Centralized Communication System
    Virtual phone systems preserve business data in a centralized location within the cloud environment. It provides remote access to the business heads, allows them to define individual accessibility towards cloud data, and ensures security in the virtual world. Professionals can use this unified phone system in multiple locations and connect with every official, irrespective of diverse geographies. Studies confirm that centralized mechanisms of VoIP-based virtual phone systems have gradually been increasing its use by more than 14%, since 2009.
  • Productive Resource Utilisation
    Virtual Phone Systems deliver 100% accuracy and error-less computing. It generates real-time call performance analytics. Such data helps management to select the right person for the right job and make optimum utilization of resources. Companies implementing Virtual phone system have reported sharp 50% increase in their employee performance and productivity.
  • The 3Rs- Reliability, Resilience, Redundancy
    Virtual Phone Systems are highly reliable. It easily adjusts to specific calling requirements and prevents call loses. As a calling software, it keeps track of all business calls and filters the most profitable ones. It has a quick recovery, offers smooth access, and secures the calling mechanisms.

  • Cost-Efficiency
    Companies pay only for what they procure. They spend low and make most of their investments. Of late, small businesses that have switched over to Virtual Phone System-based communication have successfully reduced the cost of domestic calls by 40% and outbound calls expenses by 90%. Start-up enterprises have also cut down their initial investment costs by 90%.
  • High Compatibility
    The virtual phone system is highly compatible with all personal devices- Smartphones, laptops, etc. It allows users to communicate on-the-go. Professionals can also forward calls to the personal cell phones of the concerned person. Users can also queue up calls in their absence. In this way, they shall never miss any business call.
  • Quick Integration
    The virtual phone system easily integrates with CRM modules- Salesforce, Zendesk, etc. It fetches relevant data from other software and delivers accurate solutions. The new-age calling software quickly integrates with individual emails. Its dynamic feature allows professionals to receive voice mails in their email inbox and play content directly from the email inbox.
  • Improved Customer Service
    The virtual calling systems bridge the buyer-seller gap. It helps professionals to maintain 24*7 communications around the globe. Customer service teams can use the calling software to talk with their prospects and customers in real-time, give prompt replies, and improve their service. They can also analyze the customer analytics and adopt a personalized approach to the conversations. Above all, they can sync various communication mediums- videos, emails, live chats, instant messages, social conversations, etc. and maintain 360° communication with their clients.


All of the above virtual phone system benefits are steadily pushing the SaaS industry ahead. In recent years, it has enhanced the stability and functionality of SaaS. To meet the increasing demand for private cloud space, VoIP systems are boosting the vertical growth of the SaaS industry and making it more purposeful for all business sectors. 

Updated : July 14, 2021


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