On Premise vs Cloud
Serving Portland OR | Vancouver WA
So now that you’ve decided on purchasing a Voice Over Internet Protocol (VoIP) phone system, it’s time to settle on a type of system. Generally, there are two categories: hosted (Cloud-Based) or private exchanges (On Premise IP-PBX).
Cloud vs On Premise Hardware
On Premise IP-PBX systems require hardware to be located and maintained on site. A cloud phone system is maintained remotely, using a provider’s internet data center. Examining the pros and cons of each option will help you determine which is best for your business phone system needs.
Features of On Premise vs Cloud
The features available for either type of system depend on your provider, and can vary. Before you choose a system, it will be helpful for you to make a list of features you need for your business, including the following considerations:
- Voicemail to Email Services
- Mobile Calling
- Long Distance or International Calling
- Call Forwarding
- Conference Calls
- Extension Dialing
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Pros and Cons of On Premise vs Cloud IP Systems
On Premise Phone System:
- Typically have a significant upfront cost
- No monthly fee
- More stable connection quality when Internet is less than fully reliable
- Usually able to operate using existing cabling in your office or building
- Ability to use multiple types of phone service
- Doesn’t easily accommodate features like conference calling
Cloud Based Phone System:
- Generally less expensive set up costs
- Involves regular monthly payments
- The “brain” of the system is maintained by the provider, so there is less for you to worry about
- Easy to re-route calls to cell phones if the Internet goes down
- Upgrades to new features are often at no cost.
- Great for businesses with a mobile staff
- Conference bridges are usually available at a minimum additional cost
If your business is especially concerned about the cost of the VoIP system, your provider will be able to help you choose a solution that is a better match for your budget. Overall, cloud-based options tend to be less expensive at time of installation.
Existing Technology Influences Which VoIP Phone System is Right for You
Your current technology infrastructure within your office will also influence whether premise-based or cloud-based VoIP is more properly suited for your needs. An On Premise Phone System requires specific cables (either CAT wiring or Fiber Optic). This is another consideration when evaluating and weighing your VoIP options.
When contemplating premise-based versus cloud based, it is also important to think long term. If you suspect your business will expand, it may be worth installing an On Premise Phone System now.
Professional VoIP Phone Services
America’s Phone Guys understands how important it is for your business to choose the best VoIP system. Having an effective phone system can help your business thrive while having one that is troublesome can cause preventable problems. A communications professional is standing by to assist you in determining your phone system needs, and we’ll match it to the most appropriate solution. Contact America’s Phone Guys for more information today!
FAQs About On-Premise VoIP and Cloud-Based VoIP
What is the difference between Cloud-Based VoIP and On-Premise VoIP?
On-Prem VoIP systems are located on-site whereas Cloud-based VoIP systems are hosted at the carrier’s location and only the phones are on site.
What are the advantages of an On-Premise VoIP system?
An On-Premise VoIP phone system offers great call quality, cost-savings, and provides cheaper long-distance calling.
What are the advantages of a Cloud VoIP system?
Cloud-based VoIP systems are flexible, simple, and cost-efficient. They also provide heightened security.
Does an On-Prem VoIP system have to use SIP trunks?
No, if they are hybrids they can use SIP trunks, POTS, PRIs or T1s.
Can I use my old phones with VoIP?
Technically speaking, yes. However, you may not be able to use all of VoIP’s features.
Which is better for a business with multiple locations, On-Prem VoIP or Cloud VoIP?
Cloud VoIP is better for a business with multiple locations.
Which VoIP solution costs less, On-Prem VoIP or Cloud VoIP?
On-prem VoIP will have more upfront costs with fewer costs in the long run while Cloud VoIP will have higher setup costs and monthly fees.
Why shouldn’t I go with Business VoiceEdge?
You don’t get much for what you pay for, reviews aren’t promising, and their customer service hold times can be substantial.
On Premise vs Cloud in Portland OR and Vancouver WA
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