On-Premise vs. Cloud-Based Which Phone System is Right for Your Business?


When choosing a phone system, businesses are often faced with one critical decision: Go with an on-premise or cloud-based solution?
With an on-premise solution, your phone system is centrally stored at your location, and you’re responsible for service and maintenance. On the other hand, a cloud-based solution uses your Internet connection to connect to the cloud, requiring no additional hardware except for phones.
Let’s take a look at the features of both options, to help you decide which is a better fit for your business.

• Up to 40% more costly than cloud-based, requiring cabling, hardware, closet space, electricity, & cooling
• Pay in advance for planned growth
• Multiple locations require multiple systems
• Pay for all upgrades and maintenance
• No hardware costs except the phones themselves
• Pay only for what you need and use
• Multiple locations are supported by one phone system in the cloud
• Most features and upgrades are included in cost
• Time-intensive setup, requiring the installation of significant hardware • Quick and easy setup and installation due to minimal hardware deployment
• Harder to scale, requiring thorough planning (and detailed, accurate forecasting)
• Takes weeks or months to add or delete phone lines
• Scales to your needs as you grow, using exactly what you need, when you need it
• Phone lines can be added or deleted quickly
• Requires an IT specialist to manage & make changes • Other than phones, no maintenance required
Upgrading Features
• Time to market varies
• Upgrades require manual updates from an IT specialist
• Time to market is immediate
• All upgrades are made available automatically through the cloud
• Mobile compatibility is complex & expensive • Anyone can connect from multiple devices
Disaster Recovery
• Redundancy is possible, but costly
• Recovery is typically slower, negatively impacting customer experience
• Geo-redundancy, while possible, requires double the space, hardware, software, and capital
• Built-in failover in the event of Internet or power loss
• Calls automatically rerouted to other data centers so customer experience is not affected
• Geo-redundancy is built in, with no need for a capital outlay for space, hardware, or software

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