Hosted Phone System vs On-Premise Phone System – Which Way to Go?
Buying a new business phone system can be a daunting task...One of the most crucial decisions is whether a Hosted Phone System (cloud telephony) or an On-Premise Solution is the way to go.(image: 59e4fa214b3bf.jpg alt: Hosted phone system
)### What is a Hosted Phone System?
A Hosted or Cloud solution is where the provider is responsible for housing the telephone system (usually in a large data centre) as well as handling the technology to connect the users and calls to the solution. In an age where more employees are working from their home or even at remote location halfway across the world, a Hosted PBX is the ideal solution for a business in need of mobility or for those that don’t have the physical office space to store hardware. Read this article for more information - What is a Cloud Phone System? ### What are On Premise Phone Systems?
An On-Premise solution refers to the more traditional scenario where a physical telephone system is housed on site. - - - - - -
### **Before making your mind up there are 5 key factors to consider:(image: 59e4fa2159c8a.jpg alt: Clouds
1. Cost- On-Premise phone systems will incur a much larger initial cost as there are lots of large costly pieces of hardware required to set up the solution. However after this there are no recurring monthly fees to consider. A cloud phone system has a very low upfront cost and typically all elements that make up the solution, including handsets that are on site, are charged as a monthly fee per user. Above a certain threshold you will find that it often becomes cost effective to purchase any handsets upfront though and then just pay the remainder as a monthly fee. 2. Support & Maintenance - With an On-Premise Solution you will want to ensure you have some form of maintenance contract in place to give you piece of mind if something was to go wrong. With a Cloud Phone System you tend not to have to worry about this as the solution tends to be ‘fully managed’ which means it’s the responsibility of the provider. You may want to ask them for their SLA when there is a fault and what the lead-time is for replacement handsets would be though. 3. Existing Infrastructure - Often a good starting point is to look at what you are currently using. If you are currently using a traditional telephone system on antiquated PSTN (analogue) lines then the switch to a modern On-Premise solution could be far higher than the switch to a Hosted solution4. Expansion - Whichever way you go, a new Business Phone System is a financial investment and so it is prudent at this stage to consider how your business may grow of the next year or even 3 or 5 years. Is there potential for rapid growth as with an On Premise solution this would mean you may want to purchase a larger telephone system to accommodate this. You may also find you get a larger discount with your initial purchase and if so then you may be better to purchase some additional spare handsets at that stage for any future growth. With a Hosted solution new users can be added as and when needed with the just the outlay for a new handset and the increase in monthly fee.5. Software & Hardware updates - Communications are developing all the time – with new features, applications and also security updates. These need to be factored in when choosing your next business phone system. With an on premise solution downtime and cost will need to be factored in for software updates and possible hardware updates to ensure your solution is up to date. Cloud phone systems include automatic software updates on the servers – and most good providers will carry out this work without any downtime for your phone system. - - - - - -
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