Differences Between Cloud and Onsite Phone Systems

October 16th, 2023 by admin

Two phones with a conceptualized connection to the digital cloud

One of the biggest challenges for business owners is finding the right VoIP system and the right VoIP strategy for your business. Should you invest in an onsite phone system, or will a cloud-based solution make more sense for your business?

This is an important question that business owners need to ask themselves before investing in either an on-prem or a cloud phone system for their business. If you are still on the fence about whether or not to use an onsite or cloud-based phone system, then here are a few of the key differences between the two that should help you make a more informed decision.

Onsite Phone Systems: VoIP vs. Onsite?

An onsite or on-prem phone system essentially means that the hardware appliances are stored onsite in the same building as a business, in normally what is known as a ""server closet."" On the other hand, as the name implies, a cloud phone system maintains its hardware offsite, usually at the physical data center of the host or cloud service provider. Users can then connect to the offsite servers via the internet.

Mobile Functionality

In the post-pandemic workspace in which we are living, everything should be mobile to maintain a high level of efficiency. This means that more and more businesses are investing in tools that improve connectivity, whether, at the workplace or remote workers.

When using a cloud-based phone system, you can carry your office wherever you go, which means everyone at the workplace is constantly connected with both peers in the workplace and remote workers. All you need to connect to a cloud-based phone system at work is a good internet connection and a smartphone or computer.

International Calling Capabilities

If you truly want to grow your business, then you will need to keep up with the rest, and the best way of doing that is by creating a global footprint. Since cloud-based phone systems come with incredible enterprise-grade features, you can easily do that. Another key feature of cloud-based phone systems is the ability to use an international number that you can provide to your contacts, which makes your business feel professional and truly global.

Higher Cost Savings

One of the major benefits of using cloud-based phone systems as compared to traditional onsite phone systems is that they offer businesses the scalability they need to thrive in an increasingly competitive marketplace, where businesses can go under due to a lack of cost control.

When using a cloud-based phone system, you only pay for the features you have signed up for under your subscription. This enables businesses to avoid any unpredictable costs, and could also result in businesses saving up to 70% on their business communication with cloud-based phone systems as compared to traditional on-prem phone systems.

Secure Communication

There's no denying that more security breaches are caused by human error as compared to a cloud-based and fully automated phone system. In short, the more primitive the phone or security system, the higher the chances of a security breach and data theft.

To avoid this scenario, savvy businesses both large and small are turning towards cloud-based phone systems mainly because of the extra layer of security that these systems provide that are simply unmatched.

Service providers offering cloud-based VoIP systems have highly trained and certified teams of security experts who can tackle any security issue, ensuring there's no lapse in security in your business communication.

Whether you should opt for a cloud-based or onsite phone system is mainly going to depend on your specific needs. Onsite or on-prem phone systems are easier to manage but lack in terms of security and scalability. On the other hand, cloud-based phone systems are more versatile, and flexible, require no installation costs, and offer better security features.

While the debate between on-prem and cloud-based phone systems is subjective and mainly depends on the specific requirements of a particular business, the aforementioned similarities and differences between cloud and onsite phone systems should help you make a more informed decision. It is important to note that a cloud or hosted VoIP system offers a greater level of protection for redundant data as well as resiliency, making it the preferred option to on-prem phone systems.

If you want to learn more about these two types of VoIP systems, contact us today.

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