WHICH OPTION IS RIGHT FOR YOUR BUSINESS?
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CLOUD BASED VOIP PHONE SYSTEM
CHARACTERISTICS of CLOUD
Cloud solutions can deliver not only technically, but also financially. Revenue spent can shift to the Operating Expenditure (OPEX) financial line as opposed to hardware and software licensed solutions, which sit on the Capital Expenditure (CAPEX). Combined with reduced costs, rapid deployments, low or no setup costs, vendor guaranteed support and service level commitments, these financial benefits have led to an increasing number of firms switching one or more of their solutions on the cloud.
With hosted telephony, the corporate phone system is in the service provider’s data center rather than in the client’s phone room. Telephone System in the Cloud, commonly referred to as “Hosted PBX,” is making it less necessary for corporate IT departments to house, manage, and otherwise handle enterprise phone equipment and systems. The main benefit; the service provider owns and operates the equipment and software. The customer company simply pays a predictable monthly fee, typically per user or per extension.
Things to consider on a Cloud Phone System
- Lower initial equipment cost and set-up cost
No maintenance costs of the IP-PBX, but all on-premise and remote phones and network devices are the responsibility of the customer
Staff training is the responsibility of the customer
Low monthly service cost
Easy to add extra lines
Upgrades and new features are included
Extended features, like conferencing, may come with additional costs
PREMISE BASED PHONE SYSTEM
CHARACTERISTICS of PREMISE BASED
Premise based phone systems have been around since the beginning of the industry and is commonly known as a PBX or Key System. Today’s premise based phone systems are being challenged by cloud based options, there are still strong arguments in either direction. For many traditional and single site businesses you could argue that premise based is the way to go. For companies who are in more traditional industries where technology advances are not necessarily top of mind, this may also be the way to go.
On premise PBX is also known as an IP-PBX phone system. It is similar to a traditional PBX that resides at a location, such as a computer equipment room or phone closet. Calls can go through a traditional phone company as well as voice over internet (VOIP) using SIP trunking. Gateway cards can be used to connect to the traditional phone company provider. The provider can be the one that already provides service, though the SIP trunk can be configured for use with an internet service provider
Things to consider with a Premise Phone System
- Higher initial cost and set-up cost
- Potentially higher maintenance costs
Lower monthly cost after expenses are covered
Ability to SIP trunk to get lower cost calls
On-premise IP-PBX provider will qualify network
On-premise IP-PBX provider will install and program IP-PBX
On-premise IP-PBX will train staff on feature use and “best practices”