virtual switchboard vs. traditional: Which to choose?

Author: Gtphone

Date: 03/02/2025

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Is your company still dependent on an obsolete telephone power station? The virtual switchboard has left traditional plants in the past. It is no coincidence, because their functionalities, flexibility and advantages allow companies to adapt to market demands more agile and efficient.

But how is that possible? It is that, unlike traditional plants, cloud call systems offer a comprehensive solution that optimizes call management, improves collaboration between teams and provides customers with personalized attention.

According to data from the Institute National Statistics (INE) of SpainIn the first quarter of 2024, 37.7% of companies with 10 or more employees acquired cloud computing services, which projects sustainable growth for Call Center software in the coming years.

Then we will explain the differences between a virtual telephone center and a traditional telephone center. When you finish this article you will understand, why you need to activate a call center software for your business growth, let's see!

Table of Contents

  1. virtual switchboard vs. traditional: Which to choose?

Evolution of the virtual switchboard

At the end of the 19th century, the first hand-held telephone power stations emerged. In them, an operator physically connected users' calls.

Then, in 1920, the automatic telephone power stations, which used electromechanical systems to connect calls without an operator's intervention, were born, were all new!

Can you imagine in the middle of a digital era that we were still dependent on that one-century-old system?

Fortunately, technology doesn't stop. Thanks to their evolution, telephone exchanges are now more efficient and powerful than ever. Since 2010, cloud-hosted plants have optimized business communications and have evolved along with technology, today Virtual PBX mark the pattern!

virtual switchboard vs. Traditional: Election

What is a Virtual PBX? Advantages against traditional

Virtual PBX for companies is an IP telephone system that operates in the cloud. It's designed to manage calls without a hardware in your office. The technology allows you to integrate with tools such as Customer Relationship Management (CRM).

This cloud call system is ideal for companies to manage their communications efficiently and scalably.

In contrast, traditional centrifuges require physical equipment, facilities and constant maintenance. This translates into a large money investment and represents higher initial and operational costs.

Although traditional power plants have been the standard option for years, in the middle of a digital era their limitations are evident compared to the benefits of IP telephony for companies.

Virtual PBX vs. traditional centralite: Which to choose?

At this point, it is clear that what you need is a Virtual PBX for your business.. Before you enter the online world, it is important that you make informed decisions, so here we will explain the most important differences between the two:

Functions

One of the differences between Virtual PBX and traditional plants is the following:

Virtual PBX

They are adapted to the current needs of companies and use cloud-based technology. Some of the features that stand out include:

  • They are integrated into business applications: your business does not have to adapt to the system, because it connects to various management tools, such as CMR, marketing software, sales applications, and customer service platforms, among others.
  • Arrows real-time reports:you can instantly access detailed call statistics. Some of the metrics are waiting time, duration and results.
  • The system is scalable:The virtual phone center grows with your company,you can add and remove extensions according to market needs.
  • It has advanced automation: Your customers will always be served, because you can add Interactive Voice Responses (IVR) and chatbots.
  • Allows to record each call: the recordings of the calls are stored in the cloud. This is perfect for doing audits, training the team and solving problems.

Traditional center

It is undeniable that the traditional centralites were the basis of business communication. But the modern market has challenges to face. As for functionality, this is what they offer:

  • They are dependent on physical equipment: This call system is based on a hardware, so they occupy office space and require constant maintenance.
  • Its functions are basic: they offer nothing beyond voice mail, Transfer calls and conferences.
  • Technological obsolescence: Over time they are no longer compatible with new technologies and companies must make a new investment completely.

Operational costs

For any company, the cost structure is vital to its growth and in this structure it is important to incorporate the budget for communications. With a virtual phone center this is no problem:

Virtual PBX

It is an economic and efficient service for companies due to several factors:

  • No initial investment required: you leave behind the acquisition of hardwares, neither are complex physical facilities made. Since the system works through the cloud, the initial costs are reduced.
  • Say goodbye to physical maintenance: not dependent on physical equipment means that technical visits have been completed and you do not need to buy spare parts in case of damage. Updates are made in the cloud without interruptions in the service.
  • Telephone charges are reduced: because the system uses the Internet to make calls, telephone rates are minimal. This is feasible for companies that need to make international calls.

Traditional center

On the other hand, traditional centralites represent a more expensive and less flexible approach for business communications. It is due to the following:

  • You must buy a specialized hardware:to install a traditional power plant it is necessary to acquire, servers, panels, compatible phones and pay for the installation.
  • Telephone rates are high:These power stations use traditional telephone lines, resulting in high payments. Especially international calls.
  • They need technical maintenance: the dependence on physical equipment involves regular reviews. So, it is necessary to hire specialized technicians or sign maintenance contracts with suppliers.

Virtual Telefonica vs. Traditional in 2025

Location

16% of companies around the world work 100% remote and it all points out that this percentage will continue to grow in the coming years. If in your business you bet on hybrid or remote work, the business phone in the cloud is one of the solutions that will come as a ring to your finger.

The location is one of the most important advantages and differentiation of a Virtual PBX for small businesses. Let us explore this point in detail:

Virtual PBX

Remember when the cell phones went out on the market? They were a novelty! The same is true of virtual telephone power stations, because:

  • You have global accessibility:Your employees only need a stable Internet connection to make and receive calls. This is ideal to maintain productivity in remote employees, companies with multiple locations and companies with roaming staff.
  • It offers scalability: the capacity of the Virtual PBX can be adjusted according to the needs of the company and you do not have to perform additional physical facilities.
  • They are safe and robust.: Internet is very serious about user security and Virtual PBX use end-to-end encryption to protect conversations, data and information that are handled in calls.

Traditional center

One of the greatest limitations of traditional plants is that they are subject to a physical space and that is added to it:

  • Difficulty climbing: expanding a traditional centralite is complex, because it requires the installation of a new hardware and the reconfiguration of the infrastructure.
  • Increased risk of failure: traditional plants are more vulnerable to technical failures and this disrupts the company's communications.

What kind of companies do virtual telephone exchanges work for?

The cloud telephone power station is adapted to various companies, from small businesses to large corporations. Here we explain how it benefits different types of companies:

  • Virtual PBX for small businesses: are ideal for growing businesses and businesses that need to maximize their resources, because it allows them to access cutting-edge technologies without investing large amounts of money.
    This is added to the fact that, being scalable, it can start with basic functions and adapt menus according to its growth.
  • Virtual PBX for large companies: for corporations and businesses with large-scale operations offers customizable tools that guarantee smooth and efficient communication.

Why choose a Virtual PBX in 2025?

A virtual phone center is the best choice for your company. Thanks to its cloud-based technology, it overcomes the limitations of traditional centralites, they are flexible, scalable and the value-price ratio makes it more attractive.

If one of the objectives of your business is to optimize processes, reduce costs and be at the forefront of technology, it is time to choose a call center software.

From small startups to large corporations, they find in this service a solution that adapts to changing market demands.

Why remain tied to cables and physical equipment when the technology has much to offer? Contact us! and find out how a Virtual PBX can transform your business.

Author of this article: Gtphone. All rights reserved.

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