Two of the major types of Business Phone Systems are the Cloud and On-Premise. Which is better? It really depends on your business and how you prefer to manage your telecommunications. Before we get into how to decide between the two, here’s a quick overview of both:
An On-Premise Business Phone System is physically at your office. This is how traditional phone systems were deployed for decades. With On-Premise, you usually buy all of your own equipment and your IT staff has complete control.
Cloud Business Phone Systems are hosted off site. Your business pays a monthly fee and your system is connected through the Internet. With the Cloud you only have to buy desk phones. You have some control over adds and changes, but your hosted provider does the bulk of the updates and maintenance.
How to decide which is better for your business:
How is your IT Staff?
If you plan on purchasing a new Business Phone System, it is important to know how many people you have available to take care of it. If your IT staff has the knowledge and manpower to handle an On-Premise system, then that’s not a bad option. However, if your IT team is busy with other tasks, the Cloud is more manageable. You also need to factor in how much control you and your IT staff want over the system.
As touched on earlier, you typically pay up front for an On-Premise system, whereas the Cloud is a monthly subscription fee. You also need to consider what type of ownership you want over the system and licenses. With the On-Premise option, yes you have to purchase all of the equipment, but this means that you will own it. This is not the case with the Cloud.
It is also important to take into account your company’s future. One of the great things about the Cloud is that it is flexible and scalable. If you choose that option, you only have to pay for what you need. It is also simple to add on or subtract users. On-Premise, on the other hand, requires you to pay for users ahead of time. If you are planning to grow, this can mean that you pay for unnecessary users initially.