Cloud Hosted vs. Premise Based VoIP Systems

For the 21st Century professional, working from remote locations has become a commonality, and more, it’s evolving into a staple of modern business dealings. In 2015, 70% of contact centers reported plans to employ virtual agents. Such tactics are rapidly becoming the new norm for a greater number of businesses every day. Explore the benefits of cloud hosted vs. premise based VoIP systems? In order to maintain these practices and keep operations running smoothly, a streamlined business needs an equally streamlined communication system.

As such, 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 based and premise based. Wondering which one is best for you? Here’s some information to help you get started:


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 news VoIP-powered devices.

This VoIP solution is best suited to larger businesses with a “do-it-yourself” approach to business phone solutions, because premise based VoIP systems give you more control than an alternative might. With the ability to manage your business phone system, however, comes a need for information technology (IT) expertise.

If your business already has a reliable IT team, choosing a premise hosted system would be a savvy move.


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 are best suited to growing businesses in need of technical support, which is generally provided by the VoIP vendor.

Cloud-hosted vs. premise 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. These VoIP solutions don’t require ongoing maintenance from the user, but they do offer simple scalability, and they place VoIP servers in a secure facility, (ie: a data center.)

This makes cloud based solutions superior for small businesses with budgetary and technical limitations.

Making the Right Choice for Your SMB 

The ultimate value of cloud hosted vs. premise based 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%. Don’t compromise when it comes to business phone solutions and connectivity for your business, especially when you’re just getting started.

For more information on the features offered for cloud hosted and premise based VoIP systems:

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