Select Page

One of the top questions we get from clients when customizing a phone system solution for their business is whether to get a cloud-based or premise-based phone system. While both have pros and cons, it’s important to talk with a professional to determine which is best for your business.

Understanding the difference between cloud and onsite systems is the first step in educating yourself on the benefits and potential challenges that come with using either system.

What is a cloud-based phone system?

Simply put, a cloud-based system (or internet based phone system) is one where your phones connect through your Internet to a provider that maintains the equipment at an off-site cloud data center. Essentially the “cloud” is the Internet. A cloud-based system delivers calls over the Internet, routes inbound calls to the correct phones, and can provide telephony applications such as virtual voicemail and call recording.

What is a on premise phone system?

The premise based phone system is one where the equipment, including servers, cabling and routers, are installed and maintained locally at your place of business. premise-based systems can be digital, VoIP or a hybrid of both.

So, what is the right choice?

There are many pros and cons of both systems which may be beneficial to your business. To fully understand your best choice, it’s always best to consult a professional to find out what type of system best suits your needs. However, we’ve listed out some general pros and cons of both cloud and on premise systems:

Cloud-based Pros:

  • Minimal IT involvement needed for initial installation of phone system
  • Online access to administer features, manage system and users
  • May be a cost-effective solution for smaller businesses to get rich VoIP functionality

Cloud-based Cons:

  • System improvements and upgrades are performed on provider’s schedule and may not be available when you want or need them
  • Upfront costs can be substantial depending on level of VoIP infrastructure needed and phones that need to be purchased
  • Many cloud-based providers do not offer as many features as premise-based solutions

On Premise-based Pros:

  • Systems and applications can be fully customized for your specific business needs
  • Updates can be made and issues resolved on-site, rather than waiting on your provider
  • Although upfront costs may be higher than cloud-based systems, there tends to be no recurring monthly fees. Above a certain threshold, it becomes more cost effective to purchase your own equipment.

On Premise-based Cons:

  • Upfront capital expenditure is required
  • May have to employ your own IT personnel depending on your provider

Purchasing a new phone system or upgrading your existing system is vital for the overall success of your business. There are many factors to consider when choosing which phone system is right for you. Give Davissa a call, and we will walk you through the best phone system for your business and help you customize a reliable and affordable solution.