How to Choose Between On-Premise Phone Systems and Cloud Phone Systems 

man choosing between on-premise phone systems or cloud

If upgrading your phone system is one of your goals this year, you’ve got an important choice to make: on-premise phone systems or cloud-hosted phone systems? Both have their pros and their cons, but which would be the most suitable choice for your business? To decide, you’ll need to consider which one is best for staff flexibility and what features each one offers that can improve employee performance and your bottom line. 

Below, we’ve outlined some of the advantages of both on-premise phone systems and those based in the cloud. That way, you can decide what’s best for you and your customers. Before we start, let’s get one thing straight: the major differences between the two. 

Why are Cloud Systems Different from On-Premise Phone Systems? 

Traditional phone systems require on-site installation of your phone systems and your phone lines. Each extension and its various connections are linked to the public phone network via wiring and circuitry. Some systems also incorporate VoIP services – often with an additional fee. 

Cloud phone systems link your phones and extensions together using an internet connection. Instead of using traditional desk phones, systems based in the cloud utilize softphones. Softphones are, essentially, a kind of application that allows users to connect to the office phone system from their device, mobile phone, laptop, or tablet. 

VoIP Phone Systems Advantages 

1) Simple Scalability 

One of the biggest selling points of VoIP phone systems is that they empower businesses to scale their communication services quickly and easily. It also allows users to automatically apply updates instead of waiting for manual upgrades like with an on-premise phone system. 

2) Little-to-No Installation Costs 

Unlike on-premises phone systems, VoIP phone systems don’t require a large initial investment. For most, all you truly need is a softphone and an internet connection. Because VoIP phone systems are so affordable, it can be utilized for businesses of all sizes and is especially helpful for businesses who are just starting out. 

3) Flexibility for Employees Who Work from Home 

Since COVID-19, more employees are requesting a hybrid work model – or to work from home entirely. A VoIP phone system makes this easy! As long as they have access to high-speed internet, they can take work calls and answer work emails from anywhere in the world. Rather than come into the office with an on-premise phone system, your employees can be more flexible with how they plan their days, allowing them to be more productive. 

4) Simple Call Management 

Most VoIP phone systems allow users to track, record, organize, and manage all incoming and even outgoing business calls. This means you’ll have the ability to quickly collect valuable data from your customer base using the phone system you already have in place. 

Advantages Of On-Premise Phone Systems

1) On-Premise Phone Systems Offer Tighter Communication Control 

If you want to limit the amount of control your employees have over business communication, an on-premise phone system is right for you. It allows a telephony expert, or IT tech, to manage your phones all from one location. Be on the lookout for top-notch support because you’ll probably be needing someone trained in your phone system to assist in its maintenance.  

2) On-Premise Phone Systems Provide Dependable Voice Quality 

It’s true that most VoIP systems have excellent voice quality. However, they can still experience incidents where that quality is degraded, whether it’s limited bandwidth, an error on a specific set of devices, or an error in the network configuration.  Since on-premise phone systems don’t depend on these factors, they can have a more consistent voice quality.  

3) Affordable, One-Time Cost to Set it Up (but watch for hidden fees) 

When installing an on-premise phone system, you usually pay one overarching fee and own the system outright. However, this decision may cost you more money over time due to maintenance and unexpected outages. While VoIP phone systems incur a monthly fee per user, they can prove to be more cost-effective over time. 

Choose the Best in Show for Your Business Phone System 

For an all-in-one communications solution, look no further than Advanced Communications. We provide telephony solutions such as on-premise and VoIP for businesses of all sizes! Not sure what solution is right for you? Let us help!  

We also offer solutions such as data networking, business messaging, SIP trunking, and more. With over 15 years of experience in the industry, we’re ready to help you find the right fit for your business. Contact us today to get started! 

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