On-Premise vs. Cloud-Based Business Phone Systems

Comparison • Read in 2 minutes

Which phone system is best for your business? Deciding whether you need an on-premise phone system or a cloud-based system can be a difficult process. At Ashby Communications we want to make choosing your new phone system as painless as possible by comparing the pros and cons of each.

What Is the Difference Between Premise-Based Business Phone Systems and Cloud-Based Systems?

On-premises phone systems require installing all the necessary equipment on-site. Unless you opt for an on-premise Voice over Internet Protocol (VoIP) system, you’ll have to deal with wires running through the office. Digital and hybrid premise-based systems both require wires for the phone lines to work.

With cloud-based (hosted) systems, the only hardware needed in your office will be the phones themselves. Your provider stores the rest of the equipment in secure, off-site data centers. Cloud-based systems are only compatible with VoIP phones, so you will need a reliable internet connection if you decide to choose this option.

Pros and Cons of On-Premise vs. Cloud-Based Phone Systems

On-Premise Systems

Customization — You get complete control over customization because you own the equipment. It’s easy to tailor the system to your needs by upgrading or mixing and matching equipment. However, although you have more freedom, the cost of customizing and upgrading equipment can add up quickly.
Cost — You won’t have to pay as much in the long run with an on-premise solution, because it eliminates the chance of price hikes. However, on-premise systems can incur high installation costs. You’ll also have to pay for upgrades and repairs over time.
Security — On-premise systems are only as secure as their location. As long as you implement strong security measures in your building, your system will be safe. And, if your system does not access the internet, there is no risk of hacking.
Features — If you choose VoIP phones, you can get access to all the same features offered by a cloud-based system. VoIP allows for more features because it uses an internet connection. Digital phones have less features compared to VoIP, but they still provide plenty of efficient options.

Cloud-Based Systems

Location — Because cloud systems use the internet, you can make calls from anywhere you can find an internet connection. Cloud-based systems offer flexibility for remote employees who use their business number at home.
Cost — Hosted systems are much cheaper to install than on-premise systems. Setting up your phones will be a simple matter of plug-in and setup. However, hosted systems require monthly or annual fees that will be subject to change over time.
Reliability — Cloud-based systems are more reliable because your provider manages them. For instance, Ashby Communications monitors your system 24/7 and stores your information in one of our secure data centers. Cloud-based systems also receive regular maintenance and updates to reduce downtime and improve efficiency.
Quality — Poor quality calls and dropped phone calls are both a risk with cloud-based systems because they depend on a strong internet connection. Cloud-based systems are only compatible with VoIP phones, so if you frequently have a weak internet connection, this option may not be the right solution for you.

On-Premise and Cloud-Based Business Phone Systems in California

Cloud-based systems are inexpensive and reliable while on-premise systems are flexible and secure. At Ashby Communications in California, we sell, service, and install both on-premise and cloud-based business phone systems. Call 916-960-0701 today to speak with a representative about which of our options is right for you.

Benefits of a Cloud System for a Remote Workforce

The coronavirus pandemic has created more demand for remote employees, along with reliable phone systems to support them. With a cloud business phone system from Ashby Communications, you can easily support both onsite and offsite employees while your business evolves. Read on to find out more about how your business can benefit from a cloud phone system for remote employees.

8 Phone System Features Your Business Needs

With so many available features and functions, selecting the right business phone system can feel a bit overwhelming. Ashby Communications aims to make finding the right system for your business as simple as possible. Before choosing a new phone system for your business, you should consider these eight important features.