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How Cloud-Based Telecom Solutions Help Organizations Downsize

June 21st, 2023 | 4 min. read

By Jordan Pioth

Business woman working on laptop at a desk

If your organization is downsizing, your legacy network infrastructure may not meet the needs of a smaller, restructured organization.

Depending on your reorganization, your company may benefit from cloud-based telecom solutions.

When downsizing, organizations often need to get rid of certain solutions and consolidate other solutions.

If your organization is downsizing employees and office space, you will likely be able to reduce telecom usage as well.

Cloud-based telecom solutions can help you do that with better scalability and better flexibility.

Coeo knows how important a reliable network is and has helped improve the network of thousands of organizations.

We want you to understand how cloud-based telecom solutions can benefit an organization that is downsizing its operations.

By the end of this article, why organizations downsize and how cloud-based telecom solutions help organizations downsize.

Why organizations downsize

Organizations downsize for a variety of reasons. With the pandemic converting many organizations to a remote workforce environment and inflation continuing to rise, many organizations have made the choice to downsize office space and employees.

Some of the reasons organizations may downsize include:

Reduce costs

If your organization is struggling financially, you may have to reduce the number of people you employ to eliminate costs.

An organization may have to downsize as a result of any number of economic downturns such as falling revenue based on poor business performance, competition increases, or inflation.

Updates in technology

Updated technology can lead an organization to downsize to stay competitive and keep up with market demands in their industry.

For example, if a new technology comes out that performs the same tasks and is just as productive and efficient as an employee who performs the same job, your organization may eliminate employees and rely on the technology instead.

If competitors are using updated technology to improve the efficiency and productivity of their organization and your company is not, your organization may be less productive and efficient and can lose business to competitors.

Company mergers and acquisitions

A lot of organizations downsize as a result of a company merger or acquisition.

If an organization merges with or buys out another organization and becomes one company, it will more than likely have too many employees for one organization.

While the new organization is almost always larger than the size of the previous two, there will still be massive cuts when it comes to eliminating employees and office space.

Eliminating redundancies and reducing operating costs as a result of a merger is another reason why organizations downsize.

Changes in customer preferences

Customers can change their buying preferences over time as a result of industry changes and technological advances.

These changes in customer preferences may lead to lost revenue or declining sales which can lead to the need to downsize your organization to save money and keep up with the changes in buyer behavior.

Organization restructure

If an organization is restructuring, it often results in downsizing. An organization may be looking to operate in a different way to improve productivity, efficiency, and revenue if the organization is struggling.

Downsizing may be a part of the restructuring to increase efficiency while also catering to customer needs and buying habits.

How cloud-based telecom solutions can help organizations downsize

Organizations that are downsizing can have trouble doing so with network and telecom solutions that are unable to scale or be flexible.

Cloud-based solutions are highly scalable which is helpful to an organization looking to downsize.

Some ways cloud-based telecom solutions help organizations downsize include:

Remote work availability

If your organization is looking to downsize, you may be looking to reduce or eliminate office space.

Using instant messaging and video conferencing in a cloud-based telecom solution can improve communication in an organization that is moving to a remote work environment following the elimination of office space as a result of downsizing.

In addition, cloud-based solutions require little to no hardware to be integrated into an organization’s infrastructure. This helps an organization when downsizing.

With traditional telecom solutions, there are many wires and other forms of hardware that need to be installed and maintained as part of the solution.

This can make it difficult to downsize and eliminate office space with the amount of hardware installed on the premises.

Cloud-based solutions have almost no hardware making it much easier to scale down when the lease of your office space is up and there are no plans to renew it.

Virtualization of data centers

Without the need for hardware, your organization can virtualize and eliminate data centers.

Cloud-based solutions are typically provided by a provider whose data centers are connected to the solution eliminating the need for your own data centers.

This can help your organization downsize with the ability to cut the cost of data centers and eliminate more office space.

Call routing

Most cloud-based telecom solutions allow you to route calls automatically by speaking with an auto attendant. Call routing can help an organization optimize and downsize its call centers.

An auto attendant is a virtual voice menu that allows customers to choose the department that will best solve their problems and needs.

The auto attendant will then automatically route the call to the number the customer needs to be transferred to.

This allows an organization to downsize call centers because of the call routing capabilities of a cloud-based solution.

Next steps to investing in cloud-based telecom solutions

Now you know why organizations downsize and how cloud-based telecom solutions can help organizations downsize.

This will allow you to determine if your organization can benefit from a cloud-based solution to help you downsize.

It can be difficult for an organization to downsize and even more difficult when an organization has lots of office space and hardware implemented into the network infrastructure.

Because of this, traditional telecom solutions can make it difficult for an organization to downsize while cloud-based solutions make it much easier to scale an organization down because of the lack of hardware required.

In addition to helping an organization downsize, cloud-based telecom solutions can benefit many organizations.

If your organization is struggling with communication issues with employees working in different locations, cloud-based solutions can help your organization.

Coeo knows how important reliable telecom solutions are to an organization and has delivered cloud-based telecom solutions to improve the phone services of thousands of customers.

We want you to know how a cloud-based telecom solution can help an organization so you can determine if it is a good fit for your organization.

If you would like to speak with our team to learn more about cloud-based telecom solutions or ask any questions you may have you can schedule an appointment.TALK TO AN EXPERT

Now you know the ways cloud-based telecom solutions help organizations downsize. Read this article to learn the problems cloud-based telecom solutions can solve. 

Jordan Pioth

When he's not creating content for Coeo, Jordan loves to watch sports, hang out with friends and family, and anything sneaker-related.