Hosted Vs. Premise Phone Systems

When choosing a communications solution that is best for your business, do you go with a traditional on premise system, or should you consider moving to the cloud with a hosted system? As with all business decision, you need to weigh the costs and benefits of all options. Consider the following when comparing premise vs. hosted solutions for your business:

  1. TCO – total cost of ownershinecmonitor356web
  2. Network Assessments and Service Level Agreements
  3. Call quality and reliability
  4. Obsolescence and scalability
  5. Flexibility and remote access

Like all technology these days, communications is moving to the cloud. Just as you can choose hosted enterprise “software as a service” (SaaS), telecommunications providers are now offering full business communications systems that are web based, or hosted. The advantages are obvious: scalability, flexibility, ability to use a wide variety of devices from anywhere 24/7. But there are other considerations: cost, both initial and over time, reliability and security.

In the past, premise solutions (where the entire system is based physically in your office) were often chosen because of low TCO and high levels of security, since the communications system was onsite. Cloud based communications solutions offer low upfront cost, greater flexibility and low maintenance costs. Of course every business is different, and TCO depends greatly on the size and number of locations of a business. A business with a few very large sites may end up with lower TCO staying with on premise solutions, while a business with many small sites might benefit from using a hosted solutions.

If you have a large, spread out employee base with a wide variety of needs and mobile devices, the cloud based solutions can save you a significant amount of money by allowing BYOD: (Bring Your Own Device), where employees can use their own mobile devices on your business system by simply installing an app. Using the cloud, you are not bound to any specific brand or even certain standards, since there are apps available to connect virtually any communication device imaginable, now or in the future. It also allows for one-number access no matter where or what device an employee is currently using.

nec-conference-611But if you are a small single location office, this type of flexibility and scalability is unnecessary. In this case, a more standard premise based solution may be appropriate. A business should not let the excitement of moving with the newest technology trend outweigh a thorough review of the costs and benefits. Also, modern premise systems come with many of the same options as hosted systems.

Always consult with a reliable, trustworthy expert in the communications field. SoundTel will be happy to answer any questions you have about hosted vs. premise and which is right for your business. For 30 years, we have assisted companies like yours in their every communications need. We are a local, family-owned business invested in our community. Contact SoundTel or call 425.481.5493 or 800.797.3663 to learn more.