Most businesses choose to keep their existing phone system because it still works. If the phones are ringing, calls are connecting and nobody is complaining – why fix what isn’t broken?
But keep in mind that “still working” and “working well” are not the same and have two very different outcomes. And the real costs of clinging to legacy phone infrastructure rarely shows up as a single line item.
They exist in the IT hours spent trying to fix outdated hardware and in the deals that keep stalling because your team couldn’t connect quickly enough. Not to mention the maintenance contracts that keep creeping up and the replacement parts that keep getting harder to source.
Given the UK’s Public Switched Telephone Network being switched off in 2027, the inevitable is already approaching. And industry experts think that making the move now may be one of the smartest times to get ahead of the change rather than be forced into it.
Our Experts
- Omar Sarieddine: Co-founder of Ticmint
- Dennis Vong: Owner of Inland Power Wash
- Harry Bowlby: Managing Director at Spitfire Network Services
- Steve Flavell: Co-CEO and Co-Founder at LoopUp
- Denise Murray: Marketing Manager at Microdose Mushrooms
Omar Sarieddine, Co-founder of Ticmint
“As a remote-first startup operating across multiple markets, we have never relied on legacy PBX systems. Instead, we use cloud-based tools like bOnline for voice communication when dealing with clients and external stakeholders, while internally our team operates entirely on digital platforms such as Google Meet, Slack, and WhatsApp.
This hybrid approach reflects how modern businesses actually function. External communication still benefits from structured voice systems, but internally, speed and flexibility matter far more than traditional call infrastructure.
Legacy PBX systems were built for office-based teams and fixed environments. Today, they introduce more friction than value, from setup and maintenance to limited scalability. The hidden cost is not just financial, but operational, slowing down teams that need to move quickly.
By contrast, cloud-based and digital-first tools are instant to deploy, easy to scale, and designed for distributed teams. They allow us to collaborate in real time, stay aligned across time zones, and operate without being tied to any physical setup.
For startups today, the shift is not about upgrading PBX systems, but about replacing them with flexible, software-driven solutions that reflect how teams actually work.”
Dennis Vong, Owner of Inland Power Wash
“Legacy hardware systems require highly trained engineers working at high rates to keep the clapped out systems running. From my experience in the industry legacy systems lack the digital features needed to expand a business. We notice proprietary hardware parts are harder to come by as support for legacy hardware becomes obsolete. These costs are hidden in the higher costs of maintenance and the need for manual intervention that skips the digital path. If you appreciate efficiency you understand that hanging on to outdated technology is like driving a pickup with an engine block leak.
Holding onto old systems means higher operational costs – almost 30% year-on-year according to our own research on infrastructure management and technical debt. Using cloud-based systems offers the advantage of remote access and your staff can work together without restrictions. As a former IT technician, I always recommend replacing components before they fail to eliminate catastrophic failure during the busy season. In my experience businesses are losing thousands of dollars a month just because their phones are inadequate for the pace of business.
Legacy communications systems are a complex form of traffic jam for the modern customer service team trying to get quick and efficient access to data to troubleshoot. That they don’t defend against emerging security threats because they don’t have the latest encryption protocols. What I have learned is that upgrading systems saves you time and money, and keeps your data safe. I recommend looking at your communication tools as a core engine that needs to have the right parts for optimal performance.”
Harry Bowlby, Managing Director at Spitfire Network Services
“Sticking with legacy PBX systems carries several hidden costs. Many older systems, such as ISDN 30, ISDN 2, or analog multi-line setups, function reliably for basic calling but aren’t designed for modern VoIP integration. To maintain connectivity with current networks, businesses often need to purchase and install VoIP gateways, such as Beronet devices, which translate legacy protocols into SIP trunks compatible with hosted or cloud PBX systems.
A Beronet device requires significant upfront costs, plus ongoing management for installation and maintenance. Relying on this solution may create operational issues. Over time, legacy systems may no longer meet business needs and become difficult to maintain as knowledgeable engineering resource and spare parts dwindle, forcing a costly eventual replacement.
Additionally, legacy PBX systems may not readily support hybrid working and lack modern features like softphones and integration with the most recent CRM systems.”
Steve Flavell, Co-CEO and Co-Founder at LoopUp
“Several years ago, before the pandemic reshaped how and where we work, the first wave of cloud telephony began to challenge traditional PBX systems. What it revealed was not just a new way of handling calls, but the hidden cost of holding onto the old one.
On paper, PBX can feel like a safe bet. It’s already installed and still functioning. But the reality is very different. These systems were built for a world where calls came into a building and rang on a desk, a model no longer reflects how businesses operate today.
The first hidden cost is inflexibility. As teams become more distributed, PBX systems struggle to keep up. Every workaround slows people down, and that delay is felt by customers.
There is also the ongoing cost of maintenance. Ageing hardware, specialist support, and incremental upgrades quietly drain budgets without moving the business forward.
More importantly, there is the opportunity cost. Cloud telephony has unlocked integration with collaboration tools and customer data, giving businesses real insight and agility. PBX systems cannot offer that.”
Denise Murray, Marketing Manager at Microdose Mushrooms
“The cost of maintenance of the outdated hardware is consuming your monthly operation budget and is not generating any returns on investment. Older systems do not have the scalability required in the current remote team collaboration that causes huge bottlenecks when rapid expansion occurs. Proprietary hardware fixes also cause unreliable and costly emergency repair calls that may shut your office communications down in days. We discover that the real cost of legacy technology lurks in these repeated service payments in my work. We have to look beyond the original cost of purchase to the drain.
The cloud-based systems save you sixty percent of the total communication cost and also ensure that your sensitive business data is better secured. The global team scaling advantage of moving towards unified communications is that the employees can be connected anywhere at any device. Going wireless means that you will have an easier time managing your entire office infrastructure and you will also have a smaller physical presence of your IT closet. It seems to me that the transition to VoIP is no longer a choice of businesses that would care about financial well-being.
According to my experience in the field, the old-fashioned technology kills the spirit as employees are frustrated by the inability of tools to perform their functions. The view of infrastructure through the eyes of a founder provides one with a special perspective of how the technical debt can stop you investing in real growth. I once assisted a company in reducing their overhead by forty percent by simply changing their modern cloud provider. True leadership is the decision to stop using systems that are no longer relevant to the mission.”
