Cloud-Based Or On-Premise Phone System- The Tough Decision


Businesses cannot afford to follow- One size fits all! In today’s day and age, when there’s no dearth of options, it has become even more difficult to make the right choice. There are hundreds of solutions to the same problem. But the solution that works for your competitor- may not work for you. Today, we’ll be talking about the business area where one wrong choice can break the deal for you. And that is – Communication. A well-established communication system is an asset that has the potential to skyrocket your business-customer relationship. Let’s see how! A survey by New Voice Media says- 75% percent of customers still believe calling is the most effective way to get a quick response from businesses. A similar study backed by American Express says- About 46% of consumers reported that they still prefer speaking to a customer service agent for difficult inquiries such as making a complaint or disputing a charge. Lastly, according to a Forrester study, 69% of customers are more satisfied when they talk to an agent over the phone, as compared to other customer service channels such as emails or FAQ pages. Now you know how seriously you need to take your phone calls.


Modern Businesses have one simple solution to take care of this- Voice Over IP (VoIP) telephones.

But,  it isn’t as simple as it seems. 

There are precisely two kinds of VoIP telephone systems

  • Cloud-based or hosted phone systems
  • On-premise or in-office phone systems
There’s a huge debate going on regarding which one is the best and which you should choose. Well, we cannot tell you that.

What we can assure is – by the end of this read, you’ll be able to decide what will work for your business.

Read along to know!

What is a hosted or cloud-based virtual phone system?

Cloud-based phone systems, as the name suggests, are business phone systems that are not physically present in your premises. They are rather present with your service provider at a data center away from your office. You will have to pay your service provider a monthly fee to use the system, which is connected to your office via a public or private Internet connection.

What is an on-premise or in- office phone system?

On-Premise phone systems are PBX installations within the local area  network (LAN). It is similar to a traditional PBX system and resides in your premises. Calls in this system go through a traditional phone company as well as voice over Internet Protocol (VoIP) using SIP trunking. It is mainly ideal for large organizations that already have the infrastructure required to host an on-premise phone system.
 

Let’s make your choice easier

In terms of payment-
  • Choose an on-premise PBX system if you have the budget to pay upfront to buy the system.
  • Choose a cloud-based phone system to take advantage of the tax benefits of OpEx, and instead of purchasing a phone system, rent it or purchase a phone service.

Think about your IT team-
  • Choose an on-premise PBX system if you have the resources to maintain your own phone system.
  • Choose a cloud-based phone system if you want your IT team to focus on revenue-generating projects instead of maintaining a phone system.

Are you a Control freak?
  • Choose an on-premise PBX system if you want full control of your phone system.
  • Choose a cloud-based phone system if you want to leave it to the experts- your service providers. 

Do you have more remote workers?
  • Choose a  cloud-based phone system if you have many remote workers or multiple offices to save money and avoid unnecessary hassle.

Do you foresee growth or retraction in your business?
  • Choose a cloud-based phone system in that case so that changes can be made in a timely and cost-effective manner.

Conclusion-

You are indeed the sum of your choices! 


You need to have a thorough understanding of your business needs to make the right decision. Because in this case, it is not about which is a better phone system, but which phone system is best for your business. 

The choices that you make today in terms of infrastructure will decide the trajectory of your business. Make sure it is a wise one!

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