Are there any more characteristics that we should know?

Cloud Based Phone System:

  • Service providers are experts who are better equipped than you to implement a solution.
  • Some Cloud options are not cost-effective when deployed on a large scale.

On Premise Phone System:

  • You can do what you want with your equipment, but with great power comes great responsibility, remember?
  • In contrast to your service provider, you may lack enough internal resources or the budget to make highly customized changes.

Who exercises the actual control?

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.

What is the cost involved?

Cloud Based Phone System:

  • Setup cost of cloud phone service is low
  • There are no maintenance costs at the business owner’s end.
  • (OpEX)Operational expenditure is applicable.
  • Potentially higher ongoing service.

On Premise Phone System:

  • Setup cost of cloud phone service is low
  • There are no maintenance costs at the business owner’s end.
  • (OpEX)Operational expenditure is applicable.
  • Potentially higher ongoing service.

What are these systems all about?

Cloud based phone systems are office phone systems that are not physically present in your premises. They are Phone systems where your phones connect through your Internet connection to a third-party, i.e., a service provider that maintains the equipment at an off-site ‘cloud’ data center.

On-premise phone systems are business phone systems that are present on the premises. The hardware in these systems is kept on-site in your server closet.