Cloud Telephone Systems VS Premise Telephone Systems

Is Premise or Cloud Right For Your Business?

Check the chart below to see which solution is right for your business.

Premise Telephone Systems

Cloud Telephone systems

Pros
Cons
Pros
Cons
Cost

Premise Lower Long Term Cost

Over the long-term, one-time license fees and annual maintenance fees for on-premises, are generally lower than cumulative recurring costs of SaaS software, with the break-even point between 2-3 years after purchase.

Premise Extra Costs

In house IT teams typically support and train the users with an on-premises system, making training costs significantly higher. On-premises software vendors typically charge a maintenance fee around 20% of the annual license fee.

Cloud Lower Upfront Cost

Costs are classified as OPEX, reducing the need for approval of large CAPEX during a given year.

Cloud Price Increases

Due to a monthly pricing structure and occasional software enhancements customers can expect price increases from time to time.

Premise No Monthly Cost

On-premises deployments are usually structured annually or multi-annually, eliminating the need for monthly costs.

Premise Hardware Costs

On-premises deployments place more upfront costs on the customer. Since the hardware and equipment are owned, the customer is also responsible for maintenance and replacement.

Cloud Lower Storage Cost

Cloud storage costs continue to decrease. Extra storage can be added with no additional hardware purchase.

Cloud Premium Support

While basic level support is provided within the monthly costs, premium level support is an added cost.

Premise Virtualization

Owned hardware (servers) can be virtualized and shared for other internal needs at the owner’s discretion.
 

Cloud Support / Maintenance

These costs may be included in monthly costs and not any additional fee, making budgeting easier.
 
Security

Premise Customizable

Security can be highly customized to an individual organization’s processes, requirements and regulatory needs.

Premise Policy

An organization’s security is only as good as it’s in-house security policy. For an organization with high security requirements, a solid security policy and in-house expertise will be needed.

Cloud Secure Environment

Most cloud service vendors have a very high level of security to protect information. Many vendors may also be leveraging these platforms to deliver their own services.

Cloud Industry

Many cloud solutions do not yet have the industry experience in the public sector, health care and finance, or industries with top level security clearance.

Premise In House

Knowledge of system and data reside solely in-house. May be preferred by companies with security needs that cannot allow data to be passed over the internet, or want to restrict internet access to their systems, databases or applications only.

Premise Backup & Disaster Recovery

Disaster recovery and regularly scheduled and secure backup plans are a necessity with on-premises systems, and must be handled by the customer.
 

Cloud No Control

With cloud services, software and data can reside in the hands of the vendor. Some users may not be able to know exactly where their data is being stored.
Deployment & Scalability

Premise Control

On-premises deployment impart a higher degree of control for the customer in terms of timeline and rollout. The longer the deployment timeframe adds more time for knowledge transfer to in-house personnel.

Premise Customization

Vendors will typically work customers to create highly customized solutions. However, this can become expensive and may inhibit or slow down the move to upgrades in the future.

Cloud Faster Setup

Cloud services can typically be deployed in a matter of days because the hardware/software does not have to be installed on site.

Cloud Limited Customization

Cloud services and software are typically configurable but are not as customizable as some organizations may require.
 

Premise Updates

On-premises solutions typically have a slower cycle to release updates. The updates may require hardware and software changes and will involve heavy IT involvement to execute.

Cloud On Demand

Cloud services are highly scalable. Companies can simply add or remove users at anytime.

Cloud Integrations

Due to rapid release and update schedules of cloud services, existing customized integrations with on-premises systems or other cloud solutions can become unstable during upgrades and feature rollouts.
 

Premise Longer Implementation

On premise implementation takes much longer that cloud. Requirements need planning, personnel, facilities, hardware, etc.

Cloud Less IT Involvement

Cloud services typically require much less IT involvement. Software updates and backups are done automatically by the vendor.
 
User Access

Premise Internet Connectivity

On-premises systems can run without Internet access. This is useful to keep mission-critical apps running, especially in areas where internet connectivity is not reliable.

Premise Speed

For organizations with extremely high bandwidth needs or large numbers of users accessing the same applications or data sets simultaneously, on-premises solutions can be faster in the cloud.

Cloud Mobile Staff

Cloud services require internet connectivity. With wired and wireless connections becoming cheaper, cloud services provide access virtually anywhere for multiple devices.

Cloud Internet Connectivity

While internet access makes cloud solutions convenient, it is also their biggest challenge. For workers to be productive there is a need for high quality internet, whether remote or onsite.

Premise Telephone Systems

Pros
Cons
Cost
  
Security
Deployment & Scalability
 
 
User Access

Cloud Telephone systems

Pros
Cons
Cost
 
Security
 
Deployment & Scalability
 
User Access

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