Cloud or Premise Based Phone System

Cloud-Based Phone Systems: Cost and Benefits Explained

Is a Cloud Phone System Right for Your Business?

It's time to invest in a new phone system but you're standing at the crossroads wondering what's right for your business. 

Exploring Cloud-Based Phone Systems Benefits

​Cloud Phone System vs. Premise-Based System

Cloud Phone System:
Cloud Phone Systems (also known as Hosted PBX or UCaaS) are hosted off-site by a service provider and accessed via the internet. Here are some key features and benefits:

• Scalability: Easily add or remove users as your business grows or changes.
• Cost-Effective: Lower upfront costs since there's no need for extensive hardware. Monthly subscription fees cover maintenance and updates.
• Flexibility: Employees can work from anywhere with an internet connection, making it ideal for remote work.
• Automatic Updates: Service providers handle updates and maintenance, ensuring you always have the latest features.
• Disaster Recovery: Data is stored in secure data centers with redundancies, providing better protection against data loss

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Premise-Based System:

Premise-Based Systems (also known as On-Premise PBX) are installed and maintained on-site. Here are some key features and benefits:

• Control: Full control over the system, including customization and security measures.
• Reliability: Dependence on local infrastructure can be a benefit if internet connectivity is unreliable.
• One-Time Cost: Higher initial investment but potentially lower long-term costs if maintenance is managed in-house.
• Local Data Storage: Data is stored on-site, which can be a preference for businesses with strict data security policies

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Which is Better for Small and Mid-Sized Companies?
Cloud Phone Systems are generally better suited for small and mid-sized companies due to their flexibility, scalability, and lower upfront costs. They are particularly advantageous for businesses with remote or distributed teams, as they allow employees to work from anywhere.

Premise-Based Systems also known as PBX (Priviate Branch Exchange) might be more suitable for businesses that require full control over their phone system and have the resources to manage and maintain the infrastructure. They can also be beneficial in areas with unreliable internet connectivity.
Ultimately, the choice depends on your specific business needs, budget, and long-term goals. If you prioritize flexibility and ease of management, a Cloud Phone System is likely the better option. If control and local data storage are more important, a Premise-Based System might be the way to go.

Key area's where I like Cloud Phone System: 

• Moving into a new location with a new start. Cable the building with Cat6 or better so your cable can handle the Gig speeds. Save money on cabling by running a single run to a location instead of two runs that's required with a PBX system. 
• Now is the time to integrate with your phones with a door phone system. Use a key fob to enter the buidling which leaves an audit trail. Use inexpensive video phones for those who need to see who is at the door before you buzz them in. 
• Integrte IP Paging System with your new Cloud System. Play differnet page tones for breaks our announcements. 

Key area's where I like Premise Based System: 

• The buidling you are in is older and wired with Basic Cat5 cable and Cat3 for voice. You don't have the budget to rewire the building nor do you want to invest in this. At this point a Premise Based System can work with both Cat5 and Cat 3 cable. Cloud phones like to be on Cat5e and up. 
• You have a paging system in place that is wired with for older paging application and you need your Avaya IP Office to integreate with it. 
• You are trying to keep your monthly phone bill cost down and a PBX will allow you to integrate your Avaya IP Office with SIP Trunks or TTI's SIP500. 

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