There are many different types of Business Phone System to choose from. Two of the main types are cloud and on-premises. Which type of system you end up choosing depends primarily on your business’s specific needs. In order to make an accurate decision though, you first need to understand the main differences between cloud and on-premises.
In general terms, an on-premises system is the traditional set up for businesses. It features physical equipment like desk phones and servers. All of the equipment is stored on-site.
In many ways, a cloud-based system is the exact opposite. You don’t need most of the equipment included in an on-premises system and your server is online. Rather than using physical lines to make calls, you use the internet.
Pros and Cons
Installation and Costs
Cost is always an important factor when considering any big investment. Traditional on-premises systems almost always have a higher installation and maintenance cost. This is because there a lot more equipment to set up. Consequentially, this means that maintenance costs tend to be higher than they would be with the cloud, which has little to no equipment to set up and maintain.
Nearly all businesses strive to grow. This means that the amount of phone lines you require will likewise grow. However, an on-premises system is not easily scaled. Not only do you have to pay more money every time you install a phone, but you can’t install one without a technician coming in and setting up more equipment. The cloud, on the other hand, is very scalable. It requires only that you add more users to your existing account.
These days, more and more employees are working from home. This, unfortunately, is nearly impossible to do with an on-premises system though. The bottom line is that if you are using wired devices, you will need to be at the office. The cloud though, lets you make calls from anywhere from your Business Phone System.