Main differences between on-prem and cloud phone systems

Main differences between on-prem and cloud phone systems

Staying up-to-date with technological developments and keeping costs under control while maintaining critical infrastructure can be a challenge for many organizations.

Perhaps you have begun to wonder about choosing between on-prem or cloud communications and if your business should adopt a more modern technological infrastructure such as the Cloud.

In this article we will help you evaluate the pros and cons of each solution and understand the basic difference between both.


1. Scalability

While on-premises systems have many benefits, they do come with some limitations when it comes to scalability. To accommodate more calls volume, cloud telephony services are scalable up or down depending on the organization’s needs at any given time – saving both time and money.


2. Reliability

Old legacy PBX uses cooper cables to transfer data, as a result, these systems are susceptible to natural disasters such as power outages. Therefore, cloud-based telephony uses internet connection in solid data centers which have redundancies in order to maintain business’ uptime when problems do arise.


3. Cost-effective

On-premises systems are often monthly or yearly subscription based and complex to maintain. Licensing includes upgrading software and databases which can become costly without careful planning. On the other hand, cloud communications offer pay-as-you-go billing, enabling you to choose your pricing plan accordingly: whether it’s by user or month, saving money in the long run while still getting everything you need.


4. Updates

Updating on-premises systems can be an arduous task indeed. You need to update the software and relevant databases in your system manually, which may take days. Cloud telephony systems are an entirely different story: Updates are maintained by the cloud service providers (such as Microsoft Teams). All you have to do is log onto the interface and make sure everything looks good – the updates happen automatically without any input from you.


One thing that you’ll want to keep in mind when selecting a new phone system, is what it will mean for your organization. Most people would opt for a cloud PBX because of its lower costs and reduced staff requirements compared to modern PBX hardware; however, this decision really comes down to individual business needs. If you are still unsure of which option is best for your organization, please give us a call on (833) 448-3684. At BlueSky UC we are committed to turning your communications into a simple, effective, and secure solution.

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