On-Premise Phone System vs Cloud Phone System

When it comes to choosing a telephony solution for your business, your options from all of the types of phone systems fall broadly into two categories on-premise phone system vs cloud phone system. On the one hand you have a traditional on-premises based landline system and, on the other, a cloud-hosted VoIP service.

On-Premise vs Cloud Phone System: the Key Difference

it should come as no surprise that almost all modern business telephone technology has some kind of VoIP component. These components require computer servers and software to send, receive, and store your data. This infrastructure has to be resident somewhere. The question is, should that be on your business premises, or in the cloud?

What is Cloud Phone System?

The cloud phone system means that the hardware appliances are kept offsite at the host’s cloud data center. Your phones will connect to this offsite server via an internet connection.

Related: What is VoIP Phone System and How Does It Work?

What is an On-Premise Phone System?

The on-premise phone system will mean that the hardware appliances that enable your VoIP telephone system to work will be stored onsite in your office building, most likely in your server closet.

On-Premises vs Cloud Phone System

While some businesses may find a certain comfort in a physical landline system, there really is little comparison between the two.

A cloud phone system comes with a host of VoIP features which raise it head and shoulders above an old-fashioned telephone network. Let's take a look at the main advantages of cloud phone systems over on-premise phone systems for business users.

1. Installation & Maintenance

If you opt for an on-premise phone system installation, you’ll need to buy or lease all the hardware and software. You’ll also need technical expertise (in the form of your telecom provider, an external contractor, or your own IT staff) to install, configure, monitor, and maintain the communications infrastructure. 

A cloud phone system deployment eliminates these concerns. With a cloud phone system, your business communications infrastructure is hosted remotely on third-party servers, owned and managed by a specialist provider, who also takes responsibility for system maintenance, security, business continuity, and upgrades. 

2. Cost Savings

The cloud deployment is usually billed as a monthly subscription per user and offers scalability and flexibility in the number of users you subscribe, and the features you specify.

With a cloud phone system, your business avoids unpredictable and/or spiraling costs associated with making phone calls. Businesses using cloud phone systems can see savings of up to 70% when compared to a traditional on-premise phone system.

3. Unlimited Calling

VoIP calling plans, such as those offered by net2phone, cover 40+ countries, as well as the US and Canada. What’s more, you can make as many calls as you like, international or domestic, and never pay more than your contractually agreed low monthly rate. Easily control your communications budget and avoid any nasty shocks when the phone bill arrives.

4. Full Support

With everything being handled via the Internet, there’s rarely a need to send an engineer to resolve any issues. Most common problems can be handled by one of our expert team, over the phone. The dedicated concierge service is also on hand to guide customers through any aspect of the service.

net2phone handles everything from the cloud, meaning you can concentrate on more important matters.

5. Plug and Play

Everything supplied by your VoIP provider will normally be plug-and-play ready. All you do is receive your equipment, plug it in, and you’re ready to make calls. No technical expertise is required, and no engineer needs to visit to install your system.

The plug-and-play nature of VoIP systems also make moving premises a breeze, giving you one less thing to worry about.

6. International Calling Features

Give your business a truly global footprint with fantastic enterprise-grade features, including virtual numbers – which give you a local presence even in countries where you aren’t physically represented – and unlimited calling. Cut down on the need to for costly business trips with high quality conferencing features.

Related: What is a Virtual Phone Number?

7. Mobile Functionality

The modern workforce is a mobile one, with many people spending an increasing amount of time working from home or another non-traditional location. With a cloud business phone system, the office goes with you wherever you end up. All you need is a computer and an internet connection, and it’s as if you’re sitting at your desk.

Powerful business phone mobile app from net2phone even removes the need to be at a computer. As long as you have a smartphone and a data connection, you’re ready to work, anytime, anywhere.

Cloud Based vs On-Premise Phone System: Which is Right for Your Business?

Cloud or hosted VoIP typically has greater resiliency and redundant data protection mechanisms than an on-premise implementation, making it an especially attractive option for smaller-scale enterprises that can’t afford to maintain their own infrastructure. As a result, cloud business phone systems are in use across a range of industries, including healthcare, education, and businesses operating from multiple locations.

net2phone’s cloud-based unified communications solution offers a state-of-the-art desk phone, a robust mobile app, and a cutting-edge video conferencing platform. Live Chat and robust analytics are part of a comprehensive feature set that also provides free calling to over 40 countries.

As you can see, the benefits of a cloud telephone system over an on-premise phone system are myriad. From convenience and mobility to time and cost savings, there really is no good reason not to switch to VoIP. Whether you are a small to medium sized business, or a mega corporation, you can see more business and increased service quality with cloud communications. 

Related: Why Switch to VoIP?

If you’ve decided to opt for VoIP over analog and a cloud rather than an on-premise solution for your business communications, reach out to us at net2phone.