On-Premises v Cloud-Based Business Telephone Systems: What are they?

What is the difference between on-premises and cloud-based platforms?

On-Premises

An on-premises phone system, or a private branch exchange, is the traditional business phone system. PBX telephone systems are still popular despite being outdated.

Unlike a cloud-based solution, on-premises telephone system hardware is situated within your premises. This can be beneficial in many ways. For example, it enables you to have total control over your phone system.

Despite being an older solution, PBX telephone systems can have innovative features useful to businesses.

Typically, a PBX telephone system would only be useful for a bigger business that requires many phones and ultimate, physical control over their system.

Cloud-Based

A cloud-based system utilises the internet to enable connectivity for your business.

As a VoIP system is hosted in the cloud, you can spend less on hardware and maintenance when compared with a traditional system.

A cloud-based telephone solution is more flexible than a traditional system. Why? Because you can take and make calls no matter where you are. You can use all the features of your VoIP system regardless of your location.

The flexibility, cost-effectiveness, and accessibility of a cloud-based telephone system make it the prime solution for many companies.

On-Premises Business Telephone Systems: Advantages

What are the advantages of an on-premises phone system?

More Control

When you have an in-house phone system, you have more control over your phone system.

Your phone system is in your building, rather than hosted on the cloud. As a result, you have direct control over it in a way that you might not with a cloud-based telephone solution.

Direct Ownership

To set up an on-premises telephone system, you will need to purchase the hardware required and set it up.

With cloud-based telephone systems, you will pay a monthly fee in most cases. An on-premises telephone system requires a large initial investment, but you will own your telephone system instead of leasing it.

Low Ongoing Costs

Once you have made the initial investment in an on-premises system, you will typically have low costs.

A cloud-based telephone system is extremely cost-effective, but it is an ongoing cost since you pay a monthly fee. On other hand, an on-site system usually means large upfront costs with lower expenses.

Cloud-Based Business Telephone Systems: Advantages

Why is a cloud-based business phone system often the best suited phone system for businesses of any size?

Lower Hardware Costs

VoIP is hosted in the cloud. This means you don’t require any costly telephone system hardware.

VoIP includes low upfront costs, as you pay a monthly fee for the services you require.

Low Upfront Cost

Establishing an on-premises telephone system typically requires a large investment immediately. Most SMEs cannot comfortably afford the initial setup of an on-premises phone system, which is why VoIP systems are so good.

Usually, you pay for a cloud-based telephone system monthly instead of all in one go. You only pay for the lines as long as you need them, whereas you need to outright purchase an on-premises system.

Ultimate Flexibility

A cloud-based phone system offers incredible flexibility unavailable with an on-premises system. What type of flexibility is enabled with a cloud-based system?

Mobile Working: Any calls to your office number can be directed to your mobile when you use a cloud-based phone system. This enables you to leave your office yet still answer the phone, offering flexibility that most enjoy.

System Management Possible from Everywhere: Unlike an on-premises telephone system, a cloud-based phone system can be managed from any location. This flexibility is important, as it allows you to make changes on the go and offer a high standard of customer service.

Easy to Move: Moving a cloud-based telephone system is easy since we host it in the cloud. For example, if you were to move office, it would be possible to quickly move and establish your system.

On-Premises Business Telephone Systems: Key Questions

We get asked several questions about on-premises telephone systems. Here are the answers to the questions customers ask us most regularly.

“Do I have to pay the full hardware cost upfront?”

Whether you have to pay for the hardware upfront or not depends on your supplier. Some suppliers, such as ourselves, offer leasing agreements so you can pay over time for the hardware rather than suffering a high upfront cost.

“Can Optionbox maintain my phone system?”

It is crucial that you have a maintained telephone system, or it won’t work for you as well as it should. We can maintain your telephone system proactively, reactively and cost-effectively.

We design our maintenance options to suit the requirements of your business. Our tailored to you approach allows us to offer cost-effective support and maintenance regardless of the size of your business and the number of systems you have.

“Can I install an on-premises telephone system alone?”

Installing an on-premises telephone system is an extensive task that requires a qualified engineer with experience.

We have a team of trained engineers who specialise in installing many telephone system. We carry out quickly, professionally and cost-effectively, meaning your system will be up and running before you know it.

Cloud-Based Telephone System: Your Questions Answered

Customers regularly ask us several questions about VoIP and cloud-based telephone systems. Here are some of those questions answered.

“Are VoIP calls good quality?”

Yes, VoIP calls are good quality. Sometimes, VoIP call quality is superior to that of a traditional telephone landline.

When we install a VoIP system, we use a new line besides the one you already have installed. By installing a second line, we can guarantee a high level of call clarity for your business.

“How reliable is a cloud-based system?”

We pride ourselves on the high reliability of the cloud-based telephone systems we offer. The cloud-based systems we offer operate correctly 99% of the time, offering you peace of mind that your phone system will work seamlessly constantly.

If you ever encounter any phone system problems, our responsive team will aim to resolve the issue within hours.

“Why choose Optionbox?”

We provide everything that you need to establish your cloud-based telephone system, from the software to the handsets. We install an additional line unlike other suppliers to ensure that your VoIP system operates effectively.

We pride ourselves on our personal approach, so you’ll have a point of contact that can offer you any support you require during the process of setting up your VoIP telephone system. We help you configure your new system correctly, ensuring it works effectively for your business now and in the future.

Business Telephone Systems: Which Is Best?

Unfortunately, there is no easy answer to this question. The best business telephone system depends on several factors, such as the number of lines you’ll require and the strength of your internet connection.

For most businesses, a cloud-based telephone system is likely to be most suitable. Why?

• Little upfront costs
• Small ongoing costs
• Offers flexibility
• Integration of new handsets is easy

If you don’t want to invest hundreds or thousands upfront and you require the flexibility to add and remove lines as required, a cloud-based solution is best. If you want actual hardware on-site, the best option is unquestionably an on-premises telephone system.

If you are still unsure which system to choose, fill in the contact form below. We are more than happy to offer you free, no-obligation advice to help you select the telephone system that would be most suitable for your business.