A new report has warned UK business leaders of the most commonly misunderstood technological terms which often impact performance.

The research, from TelephoneSystems.Cloud, cautions that incorrect definitions of technical terms can easily spread throughout a business, often stemming from non-tech leaders, and lead to the wrong assumptions being made, with a loss of both time and money.

Among the most commonly misunderstood tech terms are:

Cloud computing

Many think ‘the cloud’ is an online storage system without knowing it refers to a broad range of services provided over the internet, including storage, servers, databases, networking, software, and more.

‘The cloud’ has quickly become one of the most commonly used tech terms due to the reduced infrastructure and maintenance costs business can gain from using these platforms, but its meaning has shifted over time as the technology has advanced, leaving some struggling to understand exactly what the term means.

 Voice over Internet Protocol (VoIP)

Confusion can arise when office phone systems look like standard, wired-line PBX, with many not realising that if the system stems from an Internet line instead of a landline connection all calls will be via VoIP.

According to TelephoneSystems’ findings, many outside of the technology field don’t understand how these systems work, leading to frustration and confusion when they break down.

Phone ‘Lines’

The study revealed that many individuals without technical expertise struggle to set up new phone systems, often focusing too much on the number of “lines” available, and overlooking the fact that a standard DSL connection typically supports around a dozen simultaneous calls, while fibre internet can handle hundreds.

Big Data

For those without a technical background, it’s common to assume that ‘big data’ simply refers to large datasets, rather than data that is both complex in structure and challenging to manage with traditional processing methods, leading to misunderstandings over how to handle and analyse large and varied datasets.

Wi-Fi

TelephoneSystems report finding their customers often confuse Wi-fi with their internet connection, and don’t understand the difference between the connection to a router and the signal emanating from it. That can lead to Wi-fi issues remaining undiagnosed, and leave some people not understanding why they can’t get online.

Security Certificates  

For those familiar with web security, it’s clear that SSL or TLS certificates are essential for encrypting data between a website and its users. 

However, non-technical individuals often misunderstand their role, assuming that the padlock icon in the browser bar means the website is fully secure, not grasping that these certificates don’t address vulnerabilities in the website’s code.

AI

For those without technical knowledge, the term ‘artificial intelligence’ often leads to misconceptions and unfounded fears. 

It’s important for businesses using AI to educate their employees so that they understand these AI tools operate within the bounds of narrow, task-specific applications, such as speech recognition, image generation, or data pattern analysis, and that while these systems can mimic intelligent behaviour, they lack consciousness or self-awareness. 

Bandwidth

Bandwidth is quite often mistaken for internet speed, rather than the volume of information that can be sent over a connection, leading to those having problems with downloads, uploads, or streaming having little understanding of how issues can be easily resolved.

Scalability

Scalability has become a popular buzzword in business, but the research found that the term isn’t fully understood, with those outside of technical roles forgetting that as businesses begin to scale, more effort, and investment, will be needed to scale up tech too.

Application Programming Interface (API) 

The study shows that it’s important for tech experts to demystify APIs for those who might misunderstand their purpose, as the abstract nature of APIs  can often lead to confusion about what exactly they’re for.

One way to describe APIs to those without technical knowledge is as a bridge or a contract between systems rather than a standalone product, acting as the backbone of interoperability across platforms and devices.

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“Understanding what key terms really mean and how best to utilise ‘the cloud’ can dramatically improve the way a business operates and communicates, bridging the gap between vision and execution,” said Juliet Moran, founder of TelephoneSystems.Cloud.

“Because we are used to hearing these terms every day we assume we understand what they mean and therefore we think we understand what the impact of any technical changes would be on our businesses.

“But when business owners and employees grasp concepts like ‘cloud computing’ and ‘big data’, they’re better equipped to make informed decisions, optimise resources, and avoid costly misunderstandings.”