On-Premise vs Cloud Hosted VoIP Systems

On-premise vs cloud hosted Voip phone systems

Are you wondering what an on-premise vs cloud based VoIP phone system can offer your business? What does on-premise vs cloud mean? Since working from remote locations has become a commonality, especially since the start of the COVID-19 pandemic in 2020, it’s now a staple of modern business dealings. From virtual appointments and meetings to online training events, this is the time to explore what benefits an on-premise vs cloud based VoIP phone system can offer your business. 

For a streamlined communication system many companies consider a strong VoIP (voice over IP) system to be of utmost importance. There are two basic options for VoIP systems available at present: cloud or on-premise based and they both offer a different set of solutions. 

On-Premise vs Cloud: Does your business need a VoIP phone system? 

Keeping up with technology is one thing, but you should ask yourself if you even need a VoIP system. Consider your budget and, most importantly, you need to ensure your business has the infrastructure to support a VoIP phone system. Your office needs to have the correct network cabling in addition to a reliable internet connection. If you have neither of these things, VoIP may not be the best solution. Rhode Island Telephone offers a free consultation and site visit to review your location and provide insight into the best phone system for your needs. Review our on-premise vs cloud comparison below for more information. 

Premise Based VoIP Systems

Premise based VoIP systems are usually sourced from hardware being stored in the office. For this reason (depending on the type of equipment you choose) a premise based business system has the potential to work with both traditional analog phones and new VoIP-powered devices. Basically, with this service you are leasing software from a provider for a fee and have full control of the system, but they are generally more expensive.

This VoIP solution is best suited for larger businesses with a “do-it-yourself” approach to business phone solutions. Premise based VoIP systems give you more control and will work well for you if you have a dedicated support staff with information technology (IT) expertise. 

However, with the control this system offers you, that means you are responsible for the updates, maintenance, and security. All of these require additional fees for making upgrades to the system. If you have little technical experience or your IT team already has enough on their plate, consider a cloud based solution. 

Cloud Based VoIP Systems

The implementation of cloud technology is on a steady incline, and for good reason: 82% of companies report saving money by switching to the cloud, and 14% of companies downsized their IT after cloud adoption.

Cloud-hosted systems, like CloudWorx, are best suited for growing businesses in need of technical support, which is generally provided by the VoIP vendor and wrapped up into your monthly fee. With this system there is no equipment at your location and all maintenance, updates, and security support are managed by the vendor (i.e. data center). 

Cloud based VoIP systems rely upon your business’s internet connection, rather than a traditional phone service offered by your local provider. This is a big win for businesses with multiple locations because a cloud-based system will unify them all seamlessly. They also offer simple scalability with the ability to add users as your company grows.

Making the Right Choice for Your Small Business

The ultimate value of on-premise vs cloud hosted VoIP systems is entirely dependent on what would benefit your individual business the most, but the VoIP system itself can be considered a necessity. After all, VoIP can cut initial startup costs for a new company by up to 90%.

It’s also important to ensure the provider you choose offers training, if you have an IT team this shouldn’t be a problem, but cloud providers should offer their clients one-on-one training or classes to show you how to get the most out of your system. Since you’ll have the flexibility to record and manage phone calls and greetings, receive call analytics, and much more, you’ll want to know how to use everything that is offered to you.

One of the benefits of using a local provider, like Rhode Island Telephone, as opposed to a larger more well-known brand for VoIP services is the support that is offered. When you call our office, you’ll speak with the same technicians on the phone that also do on-site support. No more waiting on hold to speak to someone you’ll never meet. We pride ourselves on being available when you need it most.  

Since your phone is the most important marketing and sales tool you have, don’t compromise when it comes to business phone solutions and connectivity for your business, especially when you’re just getting started. Contact us for more information and a free quote. 


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