Deciding Between a Cloud-based and Premises-based Solution

Posted by Editor 28/09/2015 44 Comment(s)

When deciding the best phone system for your business, there are several aspects to consider, as it is the most critical decision, determining whether ;it is a premises-based solution (in which the hardware appliance is kept on-site in your server closet), or a cloud phone system (where your phones connect through your Internet connection to a provider that maintains the equipment at an off-site cloud data center). Educating yourself on the benefits and potential challenges that come with using either a premises-based or cloud phone system can help you make a good decision to ensure which is the best option for your investment. 

 

 

Features 
Features often play a significant role . Many hosted PBX providers don't offer the
 
same features in their hosted product as they do for their premises-based solution. If features like queues, IVRs and conferencing are missing, or cost extra, then the product may not be a viable solution. Cfoni VoIP  offers all these features at a fraction of the cost charged by others.
 
Upfront Cost
Hosted VoIP solutions have a low upfront cost and are typically charged as a monthly fee per user. Using VoIP with an on-site server has a higher cost upfront, but then no recurring monthly fee. Above a certain threshold it becomes more cost effective to purchase your own equipment than to pay a monthly fee.
 
Total Cost of Ownership (TCO)
Cloud computing can save your company a lot of up front ownership cost  and on-going IT expenses. The initial costs of cloud-based systems are usually much lower because there is no technical installation required. The cloud provider hosts and supports the entire IT infrastructure for you, freeing up your IT resources to focus on other productivity-enhancing measures. Cloud  also offers a pay-as-you-go subscription model that can make cash flow management much easier. The low cost of entry to start using hosted applications and the savings of not paying a large up front capital expenditure are promising reasons to start using the cloud.  Speed of setup and implementation also make moving to the cloud an attractive option to consider.
 
Existing Infrastructure
Legacy connections needs higher maintenance cost for necessary system upgrades and specialized staffs and consultants to manage the upgrades. You could see a cost savings in switching to a VoIP trunk or by using a hosted PBX.
 
Scalability
Both options are customizable; however, the Cloud is much more easily customizable than on-premise software. Customizations of on-premise software are typically tied to your current deployment and must often be revisited during upgrades. Cloud allows seamless integration. Users at the main office can be on a dedicated server running on the premises in your IT closet while users at the remote office have their phones connected to the cloud. By peering the cloud instance to the on-site server users will have a uniform experience regardless of which technology they are connected to.
 
Summary
When it comes to cloud “versus” on-premise, the best delivery option isn’t the same for every business. What works for one company won’t necessarily be ideal for another. The answer depends on a variety of factors and priorities, some of which we’ve outlined above.Knowing the facts about what each deployment offers, along with what your biggest concern is, will help determine the right software for your business and enables growth and success by helping your company achieve its goals.

44 Comment(s)

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