On-Premise vs. Cloud-Based Phone Systems for SMBs
Communication is the key to success in any business. There are multiple communication phone systems for SMBs and knowing which one is best for your organization can be difficult. The two most common options are on-premise telephony and cloud-based solutions.
Which phone system is best for your business?
On-Premise Phone Systems for SMBs
These solutions include the tangible installation of phone extensions into a public phone network in a workplace. Premise-based phone systems reduce your dependence on outside infrastructure giving you much greater control over installation, operation, and support. These phone systems are extremely customizable and give you complete control over your infrastructure. It can be either wired or wireless, depending on the company’s preferences. Advanced features can include user mobility, unified communications, collaboration, networking, security, and contact center solutions. An on-premises option is often preferred by enterprises that not only have the infrastructure, bandwidth, and resources—including an IT department—to run and manage a phone system but also place a premium on security and confidentiality.
Cloud-Based Phone Systems for SMBS
While on-premise solutions work with desk phones, cloud-based solutions work with softphones. This means all you require are IP-enabled handsets, a router, and a suitable broadband connection as each line is linked to the phone network over the internet. Cloud-based phone systems offer automatic updates, easy scalability, and many other features like increased productivity and reduced costs. Ideal for smaller organizations, a hosted phone system allows owners to remove upfront capital expenses, provide greater flexibility for their team, and integrate collaboration tools into the communication experience. Hosted Phone Systems are designed for small and medium-sized businesses. It lets you forget about your phone system and focus on growing your business.
Keys to Phone Systems for SMBs
In order to help you choose the right service option for your organization, let’s analyze how each service option performs across several key areas.
1. Features
When it comes to features, on-premise and cloud-based solutions share a lot of collaboration tools. You’ll have access to call control, voicemail, messaging, mobility, call management, analytics, and more. Both systems can integrate with various apps and can be customized to the specific needs of the organization.
2. Scalability
Scalability can be optimized for both on-premise and cloud-based systems. However, on-premise systems take more time to customize and organizations may need more time to execute changes. Cloud-based phone systems can be scaled up or down quickly and effectively without any downtime.
3. Cost
On-premise solutions tend to be more economical in the long run because once you own the equipment, it’s yours. However, there’s usually a large upfront cost for the equipment and you’re responsible for upgrades, maintenance, and repairs. Cloud-based solutions are more affordable to set up and you’re not responsible for repairs because your service provider handles that. The provider can increase their fee for the service at any time though, so it could cost you more in the long-run. The biggest question is whether or not you can put out a large sum of money up front and if you have the personnel available to handle maintenance in-house.
4. Control
If you want the highest level of control over your phone system, on-premise solutions would be best. You can create custom systems with complete authority, but you’re also responsible for implementing them without causing a lot of downtime. Hosted phone systems may not offer you complete control, but they do offer you customized services that save you a lot of time as the service provider takes care of implementations and upgrades.
5. Hardware Requirements
On-premise phone systems require physical hardware located on the company’s property. Also, software updates and maintenance must be done in-house. Cloud-based phone systems run over the internet and are managed by the provider. Hosted phone solutions have automatic updates and can be modified easily. If hardware is a big concern for your business, then cloud-based phone systems are the way to go.
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