On-premise vs Cloud Phone System – Differences and Benefits
Introduction – the need to update communications systems
No business can hope to be successful without good communication, and this still means having an efficient, up-to-date phone system.
Yet for many companies, this may be an area that has been somewhat neglected, seen as a necessary resource rather than something that can actually drive a business forward. But this is not the case. In fact, a good communications system can offer a wide range of benefits.
Effective phone systems can make workers more productive, for instance, by ensuring they can reach their colleagues wherever they are, with high-quality services. Being able to connect from anywhere is also good for employee morale and helps staff members maintain a good work-life balance.
Having a modern phone system is also invaluable when it comes to customers. That’s because, even with more options available than ever, voice is still the preferred method of contacting a firm for many users. For instance, 75 per cent of consumers believe that phone calls will help them get a quicker response from businesses, so it will be important your systems are set up to enable users to get through to the right person as quickly and easily as possible.
The changing behaviour of users
One factor that’s likely to demand a more up-to-date solution is the changing nature of business and the evolving expectations of users – both among your employees and customers. For example, mobile and flexible working is on the increase, and if you’re going to support this, you need a strong phone system that can boost communication – for example, by making it easy to redirect calls to multiple landline or mobile devices.
89 per cent of people say flexible working is more effective than financial incentives for boosting productivity
85% of Arrow employees believe they could continue to be or become more effective, if required to work from home indefinitely following the coronavirus pandemic (Source: Arrow staff survey conducted in May 2020).
74% of companies planning to permanently shift to more remote working after the covid-19 pandemic.
How we collaborate is also changing, so firms need to consider how their telephony solutions assist with this. For example, with more employees spread over multiple locations and more home workers, unified communications tools that can combine traditional voice services with tools like videoconferencing, instant messaging and screen-sharing may be highly useful, and this may require a new approach to how you deploy telephony solutions.
Understanding the options – cloud, on-premise and
When it comes to migrating a legacy phone system to more modern technology, however, there are a range of factors to consider. One of the first and most important decisions you’ll need to make is what deployment model to use – on-premise, cloud or a hybrid of the two.
There’s no ‘right’ answer to this, as each business will have its own unique needs and what works for one won’t be effective for another. But while an expert communications partner can help talk you through the options and identify what will work best for you, it pays to have a good understanding of what each service can offer.
The essential differences
On-premise phone solutions are exactly what they sound like – a complete telephony system that sits within your business, with all hardware and connectivity on site. Cloud, on the other hand, hosts its features on a server at the provider that you connect to via an IP network. Whereas on-premise is typically procured as a capital expense, cloud services fall under ongoing operational expenditure, as they are usually based around a subscription system.
This means that cloud services are often less costly than on-premises and users can enjoy faster upgrades as support and maintenance are handled by the provider. On-premise, on the other hand, promises greater control of the system, as you own the servers outright.
The benefits of cloud