Cloud Based Phone System:

• Your service provider handles the software updates and maintenance processes for you.
• You gain the ability to allocate your IT resources to other revenue-generating tasks.
• Your cloud phone service provider is better equipped, and thus exercises the actual control over your system.

On Premise Phone System:

• You have to handle all software updates and maintenance processes; you have to get it done by your internal IT staff, or outsource the task.
• You need to micromanage all the details by yourself.
• You gain control over every detail.