The office phone system used to be the only way employees could communicate with colleagues, clients and partners. These outdated land line platforms fit the bill for legacy operations, but quickly lost momentum when the workforce decided to embrace innovative technologies due to consumerization trends.

The consumerization of IT changed everything in the business, including everything from where employees would work to the devices they could use to carry out those tasks. The introduction of the smartphone, for example, enabled employees to own a complex handheld computer, allowing them to complete operations from their home or waiting in line at the local grocery store. The point is that it didn't matter where individuals worked and they were still getting the job done. As a result, old phone systems that relied on land line connections lost their importance and were replaced by more advanced solutions.

The advent of cloud computing was another major monument in the transformation of the business world. In fact, many industry experts believe the proliferation of the cloud was the most disruptive occurrence, as the technology continues to metamorphosize the way individuals work. This is partially because the cloud allows companies to more effectively support a remote workforce without sacrificing accessibility to mission-critical applications.

The hype surrounding the cloud has driven pundits far and wide to believe that it is an all-encompassing unified network that will forever change the enterprise. While this may be the case, the adoption rate of cloud office systems may not be as fast as many proclaim it to be.

Where the cloud stands

The cloud is constantly stealing headlines with evangelists claiming it is anywhere and everywhere. While this is sometimes the case, a recent Gartner report highlighted how only about 50 million office system users, who account for about 8 percent of the population, are performing operations in the cloud. Still, analysts believe that the next few years will be critical to the cloud's overall growth, eventually driving penetration rates to 33 percent in 2017.

The hosted PBX solution is a very popular cloud application today, as it transforms a traditional premise-based communications platform into more sophisticated entity capable of supporting mobile access and remote connectivity. Still, Gartner stated that email is currently the most popular collaborative tool in the enterprise. By 2014, roughly 10 percent of email seats are estimated to migrate to the cloud, though it is forecast to grow to a third by 2017.

"Despite the hype surrounding migration to the cloud, big differences in movement rates continue, depending on organizations' size, industry, geography and specific requirements. While 8 percent of business people were using cloud office systems at the start of 2013, we estimate this number will grow to 695 million users by 2022, to represent 60 percent" said Tom Austin, vice president and Gartner Fellow.

Yet organizations cannot simply adopt cloud collaborative tools without planning their deployment in advance. For this reason, executives need to map out their cloud projects.

Creating a cloud plan

Gartner said the proliferation of mobile devices has increased the need for organizations to develop best practices when embracing the cloud. This is because individuals are accessing resources from virtually anywhere at any time, changing the way decision-makers need to look at licensing. Because the cloud generally offers licenses through users, not necessarily through endpoints, companies can experience significant cost savings by not having to purchase software licenses for every endpoint.

Enterprises should also consider establishing governance policies to reduce risk.

"Although it is still early in the overall evolution of this cloud-based segment, there are many cases where businesses – particularly smaller ones and those in the retail, hospitality and manufacturing industries – should move at least some users to cloud office systems during the next two years. However, readiness varies by service provider and caution is warranted," Austin asserted.

A TechTarget report highlighted the importance that decision-makers do a thorough investigation into why their companies need the cloud and how employees intend to use it. If organizations are planning to implement a cloud VoIP or hosted document management system, for example, executives need to understand the devices that employees will use to access those platforms. If a bring-your-own-device plan is already in place, organizations need to set some limits for what individuals can do on those gadgets.

For the most part, success in the cloud ultimately comes down to how well organizations can plan the projects and monitor their usage, TechTarget noted.

In the coming years, the cloud will undoubtedly gain momentum, especially as companies continue to demand the use of innovative office systems to give them an advantage over rival firms. This acceleration will encourage companies of all sizes to map out an effective cloud strategy.

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In recent years, the advent of cloud computing has dramatically changed the enterprise infrastructure. Not only have cloud technologies revolutionized storage, but it has also transformed the business phone system, given employees access to a wider number of next-generation applications and renewed the way individuals collaborate with one another. While this change began several years ago, it can still be seen today, as organizations around the world continue to implement the cloud in an effort to stay competitive and on the cutting edge of technology.

The proliferation of cloud services throughout the business world has brought about a change in the technology as well. For the most part, evangelists no longer believe the cloud is still in its early or even adolescent stage of adoption. In fact, a large number of pundits now put cloud VoIP, storage and other applications on the road to maturity.

This was highlighted in a recent study by CA Technologies, which found that organizations around the world have a somewhat even adoption of Platform-, Infrastructure- and Software-as-a-Service cloud offerings in public, private and hybrid environments. While decision-makers' expectations of the cloud are high, as cost-savings and general performance improvements were presumed to be inherent benefits, the majority of executives believe the variety of hosted solutions under their control are exceeding expectations.

The cloud continues to look good

The survey revealed that 55 percent of U.S. executives who are using the cloud have been doing so for three or more years, as opposed to 20 percent of European respondents. Still, the majority of organizations said the cloud continued to introduce benefits well beyond its initial launch date, suggesting the cloud has a long-term possibility of remaining center stage.

Large enterprises reported the greatest use the cloud, representing 93 percent of all cloud users that have been using the technology for four or more years. Yet this does not mean that only grandiose companies can use the cloud, as many smaller firms are replacing old phone systems and other outdated equipment with innovative hosted services.

"Going in, we expected the results to be much more balanced between successes and challenges across a variety of deployments and service models. Surprisingly, survey respondents were pleased with their cloud computing initiatives, which validates that the cloud is not just a fad, and instead they are focusing on making the most of it to drive innovation, speed and performance," said John Michelsen, chief technology officer at CA Technologies.

The study also revealed that organizations have different approaches to the cloud and use the tools with various intentions.

Why are companies using the cloud?

While security is still sometimes a concern for businesses using the cloud, these fears are slowly dissolving with more use of the technology. As decision-makers become more familiar with the cloud and vendors address existing issues, the overall landscape is becoming much more safe to carry out mission-critical operations and support a remote workforce.

Improving speed to innovation is among the top benefits associated with using the cloud, according to the study. This has finally outpaced cost savings, which are still a priority, just not as much as the need to stay competitive with rival firms. Meanwhile, executives identified the cloud as being able to boost IT performance, scalability and resiliency – all of which are important when considering a hosted PBX solution and other communication platforms that are critical to day-to-day operations.

"As enterprises advance in their adoption of cloud, the desired outcomes evolve, as well. Cost is often considered an early benefit – or even a required result – in order for IT teams to justify moving in the direction of the cloud. Once they show that cloud computing improves the bottom line, they can shift their focus to innovation and other objectives, such as increased performance and enhanced security," Michelsen said.

A similar study by Neovise found that more than half of U.S. companies are using some form of the cloud, with many decision-makers using the hosted services for infrastructure purposes. This is largely because a cloud architecture enables businesses to leverage various tools and technologies without encountering interoperability or performance issues associated with numerous platforms. Other agencies are using cloud-based communication platforms for the innovative phone system features that are more affordable and efficient than their predecessors on outdated telecom services.

In the coming years, the cloud will continue to gain momentum as enterprises around the world recognize the potential benefits that may be associated with the technology. However, careful planning needs to be incorporated into cloud projects to reduce the chances of encountering unnecessary complications. By taking the time to find the right vendor, companies can deploy the cloud technologies they need to not only stay competitive, but remain one step ahead of rivals.

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Enterprise executives are realizing that they need to step out of the box if they want to stay competitive with the rest of the organizations in their respective industry. This process usually involves numerous transformations, including replacing old phone systems with more advanced offerings, eliminating the presence of antiquated hardware on-site and embracing sophisticated network services that support mobility.

Because every organization is unique with its own demands, capabilities and budget restrictions, decision-makers often embark on various tasks to achieve long-term benefits. However, there is one technology that is widely believed to level the playing field, allowing smaller companies to compete with larger enterprises despite traditional differences.

Enter: Cloud computing.

The cloud has the ability to transform the entire enterprise. Rather than having a land line phone, for example, executives can implement a hosted PBX system, which is more flexible and adaptable to ongoing technological changes. The cloud can also be used to augment storage capabilities, eliminating the need to maintain expensive, bulky and often inefficient hardware on-site. These capabilities are making the cloud omnipresent.

The birth of the cloud era

A recent Forbes report highlighted how employees were really the spark to the cloud computing flame. Individuals wanted change; there is no denying it. Instead of leveraging outdated phone systems, workers wanted the ability to use personal smartphones and tablets. Rather than having to come into the office every day, employees demanded that executives implement the tools needed to support a remote workforce. These changes continue to occur and are still driving the use of the cloud in the business world.

For the most part, remote connectivity is a major benefit for organizations. By leveraging a hosted PBX solution, employees can use personal mobile gadgets to connect to the network from virtually anywhere at any time. As a result, individuals are generally more productive when they are at home, working longer hours and completing tasks more efficiently, Forbes noted.

The ongoing consumerization of IT is also impacting how companies use the cloud. As bring your own device and other mobile initiatives continue to pick up momentum, executives are implementing cloud infrastructure services because they are agnostic. This means people can use an iOS-based smartphone or an Android powered tablet without worrying that they won't be able to connect to mission-critical applications or information.

Furthermore, migrating a business phone system to the cloud allows organizations to support a number of unique features. These tools, which were either inaccessible on land line telephony platforms or too costly, give employees new opportunities to collaborate more efficiently with customers. Forbes highlighted the importance of this, noting that enterprises that fail to keep clients engaged and satisfied will have substantial difficulty attracting and converting future consumers. Because most people today are technologically savvy, they understand that a company that is not available 24 hours a day, seven days a week is simply being negligent. Who wants to do business with a firm like that?

The future of the cloud

Unlike some IT services that come and go, the cloud is expected to stick around for a long time. This is because the hosted solutions are highly adaptable, making them easy to change in order to keep up with technological innovation. This was highlighted in a recent Gartner report, which noted that the global public cloud market is forecast to generate $131 billion in revenue this year, up more than 18 percent from the $111 billion industry it was in 2012. But the cloud is a diverse market with numerous options to choose from, including cloud VoIP, storage or analytic solutions.

"The continued growth of the cloud services market will result from the adoption of cloud services for production systems and workloads, in addition to the development and testing scenarios that have led as the most prominent use case for public cloud services to date. Evidence of this growth is found in the increasing demand for cloud services from end-user organizations, met by an increased supply of cloud services from suppliers," said Ed Anderson, research director at Gartner.

As enterprises continue to adopt the cloud, the technology will inevitably mature, evolve and transform into an even more ubiquitous service that supports the way employees currently carry out operations and how they want to work in the future. Regarding communications, most phone systems will make their way to the cloud within the next few years, as executives understand that embracing this transformation will be critical to their ability to attract and retain employees.

Because every business is different, however, decision-makers need to be sure they map out their projects carefully and work with a trusted provider to find the solutions that best fit their corporate needs. If companies jump into the cloud without learning how using the technology will inevitably disrupt the way tasks are carried out, they will only encounter challenges and miss out on the advantages.

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The presence of cloud computing in the enterprise has given executives new opportunities to augment numerous portions of their infrastructure, including the business phone system, storage solutions and software development processes. Because the cloud can be used in a variety of applications, decision-makers are usually on board with its deployment, as the technology promises to reduce expenses and breath new life into outdated operations.

For the most part, the use of cloud computing in the business world has received positive feedback from enterprise executives. However, the numerous advantages of the cloud are not known only to upper management, as employees are aware of the benefits associated with using hosted services, with many using the technology in their personal lives. As a result, it is not uncommon for individuals to implement the cloud without executive authorization, which can lead to significant challenges down the line.

Unmanaged cloud deployment projects, commonly referred to as the "cloud sprawl" phenomenon, is becoming an increasingly difficult problem to solve. This was highlighted in a recent study of more than 230 IT professionals by PMG, which revealed that of the 54 percent of respondents who claim to have a cloud policy in place at their organization, only 43 percent believe those guidelines are effective at preventing people from implementing the hosted services on their own. This suggests that despite all the benefits associated with the cloud, organizations are facing new challenges.

The survey found that 70 percent of companies claim that cloud storage offerings are the most common problem with unauthorized deployments, while 68 percent said unmanaged cloud synchronization is the most difficult. Another 53 percent of organizations said employees often deploy innovative collaborative tools, like to support connectivity for the growing remote workforce.

"Cloud services will continue to expand within companies, in fact this study found 38 percent of IT respondents turn to the cloud because it offers faster deployment. Savvy IT departments are focusing on finding better ways to offer enterprise-grade cloud services to internal users as a way to stem cloud sprawl and safeguard corporate information," said Joe LeCompte, principal at PMG.

By taking the time to plan ahead and map out their organizations' use of the cloud, decision-makers throughout the business world can be sure any cloud VoIP, storage or other application deployment is monitored efficiently.

Making good use of the cloud

Because a well-executed hosted PBX solution or other application can introduce significant benefits to the enterprise, it is important that executives do not immediately disregard any cloud project that was tackled by the workforce. The study found that most companies follow through with this mentality, as 65 percent of respondents said they evaluate the cloud implementation before assessing what to do. In many cases, organizations will make a few adjustments, add security tools and keep the installations running.

Taking an "evaluate first, take initiative second" approach will be important in the coming years, as more than 80 percent of IT professionals believe the volume of cloud projects during the next two years will be greater than what it is today.

"At the end of the day, IT is not going to paint all public cloud solutions as 'bad.' In fact, 69 percent of IT executives say a hybrid cloud strategy using both private and public cloud offerings is the wave of the future inside the enterprise. Containing cloud sprawl to protect corporate information and ensure security can be done by providing cloud services in a structured manner with a proper governance framework," said LeCompte.

An ISACA report recently highlighted several considerations when developing a cloud governance strategy, emphasizing that executives need to systematically evaluate the infrastructure to ensure cloud use, as well as the benefits and risks that come along with it, is properly analyzed and understood. In most cases, implementing a cloud PBX or other hosted solution will transform operations from what they used to be. For this reason, IT directors need to be sure the workforce is properly trained to deal with this transition.

ISACA also suggested that enterprises take note of what technologies will be changed due to the emergence of the cloud. In many cases, replacing an old phone system with cloud-based services will improve efficiency in the workplace, but it will also require employees to perform differently from how they used to. In many cases, individuals fail to recognize this transformation before implementing the cloud, which can result in significant management and performance complications.

In the coming years, the cloud will undoubtedly become more popular, encouraging more employees to implement the tools without the proper authorization. Although this might be an inevitable phenomenon that businesses just need to deal with, decision-makers can still take a stand against it by training individuals on best practices and taking the initiative to ensure everyone is aware of the potential risks and benefits that come hand in hand with the cloud.

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Enterprises around the world are reinventing their infrastructure due to the emergence and proliferation of cloud computing technologies, which can transform traditional storage solutions, business phone systems and everything else in between. But not all companies are on the same page, as some decision-makers are fully engaged in their efforts to implement the cloud, while other executives are still somewhat cautious and skeptical, worried that the technology is just another buzzword that won't necessarily introduce any unique benefits.

There are a number of reasons why different organizations have varying opinions of the cloud, as some industries are riddled with more rigid compliance requirements, making the hosted services seem inadequately prepared to keep mission-critical information safe. Other enterprises believe the ability to leverage hosted PBX solutions will provide them with the scalable and flexible phone system they need to support a growing remote workforce. Basically, the differences in cloud perceptions come down to the fact that there is no sound definition for the technology, uniting all of its benefits and potential faults.

A recent study by InformationWeek highlighted how a number of companies today are more like the tortoise than the hare, as decision-makers believe they can wait until the right moment to implement cloud services. While this may be the case in some circumstances, saying it is the truth for the entire business world is a lie. In fact, some firms will find that the laggard cloud adoption pace will make it increasingly difficult to compete, similar to running uphill while trying to carry all of an enterprise's infrastructure.

The survey polled nearly 450 business technology professionals and found that approximately 64 percent of respondents are using some form of cloud and virtualization technologies. This represents a 13 percentage point jump from last year, suggesting that concerns about the cloud are not necessarily completely halting adoption rates.

"I believe that cloud computing has the potential to be a great asset to many businesses," one respondent told InformationWeek. "The biggest concern will be the infrastructure. I do not believe the current bandwidth can support a much greater demand."

The cloud is becoming increasingly important as enterprises around the world embrace mobility, which is driving network traffic volume and putting more pressure on decision-makers to emphasize application performance. In fact, InformationWeek revealed that roughly 77 percent of businesses believe cloud-based applications perform better or are at least equal to in-house solutions. This is important for organizations that support a remote workforce, as individuals are using a broad range of platforms to connect to mission-critical resources.

Cloud, mobility encouraging monumental infrastructure changes

As the cloud and mobile landscapes evolve, executives are replacing old phone systems and abandoning their use of PCs and other desktop technologies. This was highlighted in a recent study of 1,300 companies throughout the U.K. and U.S. by Vanson Bourne on behalf of Rackspace, with 82 percent of respondents believing that using mobile software and tools will soon become the normal way that individuals carry out corporate tasks.

By deploying a cloud PBX system, for example, enterprises can support connectivity to mission-critical resources from virtually anywhere at any time, regardless of platform. This is especially important as bring your own device and other consumerization trends make their way into the workplace.

"There is no doubt that cloud computing is enabling a more flexible workplace using a range of devices. What's interesting to see is how staff are wanting to access their corporate IT services; they're demanding the same consumer app experience in the workplace from their laptops, smartphones and tablets. With our reliance on the PC declining, the onus is on the businesses to deliver their IT services in a format that enables staff to access corporate cloud apps from any device or location," said Brian Nicholson at Manchester Business School.

As the office phone system continues to evolve, enterprise executives need to take the time to map out a coordinated plan of attack, as the telecommunications landscape will likely continue to evolve in the coming years. This means decision-makers need to assess their current infrastructure, determine which innovative offerings will provide the most benefits for their organizations and find a vendor that is willing to provide long-term support during a firm's quest toward innovation.

There is no longer any doubt that the cloud is introducing monumental changes to the business world, as hosted services enable individuals to carry out mission-critical tasks more freely in ways they see fit. By planning ahead and understanding where the cloud and mobile landscapes are headed, enterprises will be able leverage the most appropriate, affordable and effective tools that meet their specific demands. This will inherently provide them with a competitive advantage over rival firms that have yet to embrace next-generation trends.

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Businesses around the world are leveraging cloud computing technologies for a variety of reasons, including the ability to optimize storage environments and improve outdated office phone systems. While the healthcare sector was initially tentative to use the cloud, hospital administrators and other decision-makers are beginning to recognize the potential in leveraging the hosted services.

A recent report by cloud computing consultants CoreMatrix highlighted the healthcare industry's move to the cloud, noting that federal incentives and mandates for organizations to embrace electronic health records (EHRs) are among the biggest drivers for the change. In many cases, the emergence of EHR strategies means businesses will be required to capture and store larger volumes of data without jeopardizing connectivity, accuracy or the ability to deliver high-quality patient care.

Fortunately, the cloud can deliver on all of these fronts, as well as many others. CoreMatrix noted that the cloud is among the best technologies to connect traditionally disparate systems. This means that a hosted PBX solution, for example, would likely ensure physicians are able to share information with one another without sacrificing the ability to provide coordinated care.

Additionally, well-planned cloud environments can actually be much more secure than legacy architectures, reducing the chances that employees will inadvertently expose sensitive information. This is especially important as bring your own device and other mobile initiatives become more common in the healthcare sector.

"Many healthcare executives traditionally believed that keeping medical records behind the firewall was the safest choice, but this is no longer the case," said Paul Nix, co-founder of CoreMatrix. "Cloud providers must conform to HIPAA regulations and many cloud providers specialize in implementing cloud configurations to meet the needs of healthcare."

Keeping connectivity alive

Cloud services in healthcare are becoming more important as hospitals and other facilities continue to adopt social and mobile technologies in and outside of the workplace, CoreMatrix stated. The cloud can also help caregivers connect with patients through the use of advanced cloud VoIP systems, which are primarily unbiased toward the endpoints that are accessing the network. This means that an individual will not fail to receive care solely because he or she is using a smartphone or tablet that is not necessarily supported by hospital IT departments.

A separate Healthcare IT News report highlighted that the cloud is gaining momentum in the healthcare sector because of its ability to support mobile connectivity. This is especially important with regard to mobile applications, as the phone system features are often the most advantageous reasons for using the cloud-based services.

"Every great mobile app is backed up by some cloud infrastructure," cloud expert Greg Arnette said, according to Healthcare IT News. "All behind the scenes is the workhorse that powers the app. Mobile uses a lot of backend cloud services."

Healthcare IT News also said the cloud supports innovation faster than other emerging services. This means that healthcare executives who want their organization to stay on the cutting edge of technology should consider replacing their old phone system and other antiquated network solutions with cloud offerings that are more flexible and agile. In doing so, businesses will be able to improve operations, reduce costs and eliminate some of the complexities associated with maintaining outdated tools.

As hospitals and other healthcare facilities are increasingly pressured to adopt next-generation strategies, decision-makers need to keep an open mind and think about migrating processes to the cloud. By taking this forward-thinking approach, administrators will be able to improve their odds of experiencing longevity and long-term survival, which is especially important in today's economy.

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A recent study of more than 1,000 SMBs by the research firm Colmar Brunton highlighted how smaller organizations are reaching for the cloud more aggressively than they have in the past. Currently, approximately 16 percent of SMBs use the cloud for business purposes, up from 14 percent in in July 2012.

Although there are a number of reasons to implement the cloud, the financial opportunities are highly convincing in today's unpredictable economy. In many cases, using a hosted PBX or other cloud-based technology introduces significant chances to not only reduce expenses, but also increase revenue, which can give an organization greater strength to move forward with other technological endeavors.

"Our research findings provide a clear-cut case for embracing online technologies in business," said Tim Reed, CEO of MYOB, the company that sponsored the survey. "The latest study reveals SMBs using cloud were twice as likely to see a revenue rise in the past year than those who aren't."

The financially sound cloud
The survey highlighted how organizations using the cloud are 106 percent more likely to experience an increase in revenue than those that don't, suggesting the hosted technology can introduce significant long-term financial opportunities in conjunction with the ability to reduce internal maintenance expenses. Conversely, only 53 percent of SMBs not using the cloud are expected to experience larger revenue.

The ability to reduce costs and improve sales also allows decision-makers to invest more heavily in other technical and operational endeavors. The study found that 52 percent of companies using the cloud intend to focus more on customer acquisition and retention strategies, compared to only 34 percent of firms that don't use the cloud. This means many organizations will be enhancing their contact center and other departments meant to improve the overall client experience.

Another 33 percent of SMBs using the cloud plan on increasing the number of services and solutions they offer, as opposed to only 22 percent of decision-makers not using the cloud.

"This ubiquitous technology has helped so many smaller businesses become better connected, more productive and more competitive," Reed asserted.

Using the cloud for voice
In many cases, SMBs will implement cloud PBX solutions to improve collaboration and voice quality without negatively impacting operations or the budget. By planning ahead and working with a trusted service provider, decision-makers can be sure long-term IT deployment strategies are aligned with other mission-critical goals.

A report by Parallels noted that the global market for SMB cloud services is expected to expand at a compound annual growth rate of 28 percent through 2015, when it will eventually generate roughly $95 billion in revenue. A large portion of this spending will be carried out with the purpose of enhancing internal and external collaboration.

As cloud technologies continue to mature and evolve, executives in small companies need to consider implementing the hosted services to gain a competitive advantage over rival firms and ensure their ability to operate efficiently during the emergence of mobile solutions and other tools. While neglecting the cloud will not necessarily spell disaster, it may make it more challenging for SMBs to stay relevant.

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A recent study of more than 800 IT leaders and decision-makers within U.S. businesses by independent research firm Neovise on behalf of Virtustream highlighted the growing American cloud market. In fact, the survey revealed that more than half of respondents are already using at least one public or private cloud solution. While this represents a major milestone in the adoption of hosted tools in the private sector, it suggests there is still a lot of room for growth.

Interestingly, IT executives take various approaches to using the cloud. While some enterprises see the potential in completely replacing old phone systems and other tools with cloud-based services, others believe implementing multiple clouds simultaneously provides the most benefit.

"We have already entered the multi-cloud world and there is no going back," said Paul Burns, president of Neovise. "What remains is further maturity for hybrid clouds – where organizations not only use multiple clouds, but combine and integrate them to provide enhanced capabilities. Service providers and vendors that support multiple types of clouds have a competitive advantage here."

Performance is critical to cloud success
In many cases, the scalable and flexible characteristics of the cloud are among the technology's most important features, especially when selecting a cloud PBX platform. Neovise noted that hosted environments that are elastic and can be quickly adapted or transformed offer the greatest potential for businesses, though many decision-makers have failed to implement these tools. This suggests that enterprises will likely benefit from the ongoing maturity of the cloud, which will inspire more confidence to implement the hosted services.

"It is great to see from this research how broadly enterprises are adopting clouds today," said Simon Aspinall, an executive at Virtustream. "Cloud users expect to be able to choose hybrid combinations of cloud: public, private, virtual private and hybrid clouds. Businesses also want enterprise-class cloud services that deliver assured performance and high reliability that production applications demand."

The changing business phone system is a major contributor to the ongoing adoption of cloud services in the private sector, especially as consumerization trends continue to lead decision-makers to support the ability to use smartphones, tablets and other gadgets for work-related purposes. This was highlighted in a separate study of more than 1,200 IT professionals by CDW, which found that nearly three-quarters of respondents said the personal use of cloud and mobile services influenced their decision to deploy hosted services in the office.

In fact, CDW revealed that 68 percent of executives said employee requests for the cloud have dramatically increased during the past two years.

"By aligning cloud services with critical applications and preferences of employees that use mobile devices, organizations can better capture business value that includes cost savings, increased efficiency, improved employee mobility and an increased ability to create innovative new products and services," said Stephen Braat, general manager of cloud solutions at CDW.

As the cloud continues to evolve in the coming years, decision-makers will continue their quest to improve collaboration, resorting to the use of cloud-based phone systems that are more flexible, scalable and adaptable than legacy land line offerings.

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A recent HP report highlighted the importance that CIOs and CFOs understand the concepts associated with making the transition to the cloud. Although firms can experience a number of benefits and opportunities when using the hosted services in the workplace, there are also some common pitfalls that decision-makers should be wary of and avoid.

Nevertheless, the cloud more often than not offers advantages that far outweigh the concerns associated with using it. For this reason, decision-makers should understand the technology and how using it can give them an edge over competitors still using old communication platforms and technologies.

Why adopt the cloud?
The speed and flexibility of the cloud is often the most highly decorated characteristic of the hosted services, HP noted. Although traditional solutions may still provide some benefits to an organization, largely because employees are familiar with the tools, it is often costly and troublesome to maintain an antiquated platform that only provides a few advantages.

A cloud VoIP system, for example, gives organizations the ability to easily add or remove connections, allowing employees to continue operations from virtually anywhere at any time. This is especially important in today's highly mobile landscape, where individuals demand the ability to work remotely and use personal smartphones or tablets for business operations. HP said the cloud is easily scalable and can be deployed quickly and efficiently, minimizing downtime, reducing maintenance expenses and boosting revenue potential.

In addition to providing firms a way to improve the agility of operations, the cloud is also on the cusp of technological innovation. Because new tools and services are being offered every day, it is unreasonable to expect decision-makers to locate these offerings and implement them regularly, the report said. By using the cloud, organizations can have software automatically upgraded and deployed, eliminating the need to waste time and resources that could otherwise be used to focus on more mission-critical objectives.

A report by Infonetics highlighted the evolving VoIP market, noting that many businesses are beginning to replace old phone systems with cloud-based offerings because of the inherent flexibility and management improvements associated with making the tradition. In fact, the number of organizations using hosted enterprise VoIP services is forecast to more than double between 2012 and 2016.

"The revenue that service providers derive from their residential and [small office/home office] VoIP subscribers still eclipses what they get from businesses, but the business segment is growing about twice as fast, due in large part to the surging popularity of SIP trunking and hosted VoIP and [unified communications] services," said Diane Myers, directing analyst for VoIP at Infonetics Research.

As the overall cloud services market continues to evolve and expand, companies around the world will begin making the transition from traditional VoIP to cloud-based solutions due to the hosted offering's ability to improve agility, reduce costs and support an ever-increasing remote workforce. By planning ahead and understanding how their organizations can make the switch to hosted VoIP, executives will likely be able to make the transition without encountering any problems that could jeopardize performance.

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A recent report by Gartner highlighted the ongoing expansion of the public cloud market, noting that it is forecast to grow 18.5 percent in 2013 to generate $131 billion in revenue, up from only $111 billion in 2012. Analysts said the cloud infrastructure services segment is likely to grow at the fastest rate, while cloud advertising will account for the largest portion of the market. However, the overall industry is expected to experience positive growth in the coming years, largely because businesses are feeling generally more comfortable with the technology, especially as remote working trends continue to pick up momentum.

"The continued growth of the cloud services market will result from the adoption of cloud services for production systems and workloads, in addition to the development and testing scenarios that have led as the most prominent use case for public cloud services to date," said Ed Anderson, research director at Gartner. "Evidence of this growth is found in the increasing demand for cloud services from end-user organizations, met by an increased supply of cloud services from suppliers."

Acknowledging the different levels of cloud computing
Although businesses largely make the initial transition into the cloud to leverage unique application services, implementing new infrastructure solutions can provide substantial benefits. Replacing an old phone system with a cloud-based offering, for example, introduces a number of unique opportunities, including the ability to support a large remote workforce and boost overall productivity.

Gartner said understanding the various tiers of cloud services is critical for the global private sector to continue its use of the cloud without interruption. A separate report by TechTarget highlighted the ongoing demand for cloud-based communications in today's highly mobile and fast-moving business world. By leveraging a cloud VoIP system, companies of all sizes can take advantage of a highly scalable telephony platform that can support anytime connectivity with fewer outages and better quality. This is especially important for firms looking to grow in the coming years, as cloud communications makes it easy to add or remove endpoints on demand.

Because the cloud has evolved so quickly, cloud communications have become synonymous with next-generation collaboration, especially as the contact center continues to change into a ubiquitous department that needs to meet demand at any hour of the day via a variety of platforms. TechTarget said the cloud has dramatically improved organizations' ability to meet customer needs, giving companies using the hosted technology a competitive advantage over rival firms still using antiquated solutions.

In the coming years, the cloud will continue to mature and provide even more substantial benefits to users confident enough in the technology to deploy services on a broad, multi-tiered level. While cloud storage and applications can introduce a number of long-term profits, cloud-based communications can improve efficiency in real time, strengthening a firm's ability to quickly recover operations in the wake of an emergency, support connectivity to a growing remote workforce and improve overall collaboration throughout the entire organization.

By taking the time to plan cloud deployments carefully, businesses will be able to find the services that meet their needs without sacrificing their budgets or other mission-critical goals.

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